Generally, you do not charge GST/HST on goods or services sold to a US company. These are considered exports and are typically "zero-rated" (taxable at 0%), meaning you charge 0% tax but can still claim Input Tax Credits (ITCs) on expenses incurred to make those sales.
You do not need to charge GST, HST or PST if your customer is outside of Canada. However, you likely need to charge sales tax based on your customer's location.
In Australia, certain supplies of goods and services to non-residents can be treated as GST-free, meaning no Goods and Services Tax (GST) is charged. This treatment helps keep Australian businesses competitive in international markets and avoids double taxation for overseas customers.
The U.S. is one of the few countries that does not charge VAT or GST. Instead, the U.S. uses state sales tax as its method of taxation.
Suppliers may invoice in foreign currency and recipients may make payments to suppliers in foreign currency. However, foreign currency must be converted into Canadian currency using an approved method in order to determine the amount of tax for GST/HST reporting purposes.
GST Is Based on Customer Location, Not Currency
For example: If you're based in Australia, GST is required—even if you're paying in USD. If you're located outside of Australia, GST will not be charged, regardless of the currency.
No, as long as the services are provided to a business outside the UK, the payment method does not affect the VAT treatment. You do not need to charge VAT.
Exports Under GST Law
Both goods and services exported are considered zero-rated supplies. This means: You don't need to charge GST to foreign clients. You can claim input tax credit (ITC) refunds on the GST you paid for business purchases.
If you are a consumer (not a GST registered business) and you buy imported services, digital products and low value imported goods, the price may include goods and services tax (GST).
To answer this, we follow the place-of-supply rules, which means that if the customer is located outside of Canada, no GST needs to be charged. If an American or international customer has a delivery location based in Canada, GST rules will apply based on the province of address.
This means if you're acting as a broker or agent located in India—even if the client is based in the US or UK—GST on Services Provided to Foreign Companies will still apply, since the place of supply is considered India.
You must register for GST when your business has a GST turnover (gross income minus GST) of $75,000 or more. This is known as the 'GST threshold'. There are a few additional factors to be aware of regarding the GST threshold. For full details, please see the relevant page of the ATO website.
You have to start charging the GST/HST on your date of registration, including on the sale that made you exceed the $30,000 threshold.
When you travel to Canada, it is best to pay in local currency (CAD) instead of USD. We show you the top three benefits of paying with CAD. Find out how you can save money on your overseas trip and avoid unnecessary currency exchange fees.
Canada and the U.S. have a tax treaty to prevent double taxation for Canadian residents earning U.S. income and U.S. citizens working and living in Canada. Regardless of your citizenship, you have to pay Canadian income tax if you live and work in Canada.
No. The U.S. does not have a national GST. Instead, every state has its own Sales Tax rules, rates, and filing requirements.
Generally speaking, you are not required to charge GST/HST (or other provincial sales tax) on sales to international customers if the goods or services are purchased while the customer is outside of Canada.
When Is Currency Conversion Required for GST? Currency conversion is necessary in any GST-related transaction that is not denominated in Australian dollars. This includes: Importing goods where the invoice is in USD, EUR, or any other foreign currency.
The proposed dual GST envisages taxation of the same taxable event, i.e., supply of goods and services, simultaneously by both the Centre and the States. Therefore, both Centre and States will be empowered to levy GST across the value chain from the stage of manufacture to consumption.
When services are used outside Australia. The supply of service is GST-free if the supply is used or enjoyed outside Australia or the supply is made to a non-resident who is not in Australia when the supply is made.
The GST payable is 10% of the value of the taxable importation. The value of taxable importation is the sum of: the customs value of the goods. any customs duty payable.
You can invoice for the goods and services that you supply in any currency. However, if there is any UK VAT due on the transaction, then your invoices must also show the following in sterling: the total net value of goods and services at each VAT rate. the amount of VAT, if any, at each rate.
If you're a US-based company selling physical goods to other countries, you're very likely to have to deal with VAT. These rules and thresholds vary country by country, so it's important you check each country's VAT requirements before doing business there.
When not to charge VAT