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When the HST remitted doesn't match up

By John R Mott |

Phil asked:

I work for a company with a head office in another province. I charge HST based on my province's HST but the company remits at the rate of their province which is lower than my province. Am I losing out or what recourse do I have.

John R Mott answered:

The applicable GST/HST rate on your services is not necessarily determined by your province of residency. The issue is where is the supply of your service deemed to be made under the GST/HST "place of supply" rules. I refer you to GST/HST Technical Information BulletinB-103 (at the CRA website), for a full discussion.

Generally, the applicable GST/HST rate is based on the location of the person using your services. For example, if you are located in Ontario (with an HST rate of 13 per cent) and your client is located in Alberta (with a GST rate of 5 per cent), you would generally charge GST on those services at the rate of 5 per cent. The correct answer in your case will depend on several factors, including the specific nature of your services and the geographical scope of your clients operations and facilities.

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