Online Tax Strategies−July 2018 : New change to GST/HST reporting on sale of carbon emission allowances
Businesses and other persons who buy or sell emission credits under a cap and trade or other carbon pricing system should be aware of recent changes made by the Department of Finance to the reporting of GST/HST on sales of carbon emission allowances.
As of June 27, 2018, a person who purchases taxable carbon emission allowances from another person is required to self-assess the applicable GST/HST on that purchase. In the past, the tax on such a transaction would have been required to be collected and remitted in the more usual way by the vendor. Transitional rules have also been announced to accompany this change.
Carbon emission allowances are credits and similar instruments issued by a government, international organization or other regulating body to quantify greenhouse gas emissions to satisfy a program implemented to regulate such emissions.
Download the document below for more information.
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Online Tax Strategies, July 2018−What South Dakota v. Wayfair, Inc. Means For Your Business’ US Sales
The Supreme Court of the United States has just made a landmark ruling that will reshape Sales and Use Tax compliance for Canadian businesses selling into the United States.
Before South Dakota v. Wayfair, Inc.
Previously, states could not impose sales and use tax registration or collection obligations on a business if the business had no physical presence in the state (for example: a place of business, inventory, equipment, sales staff, independent agents, contractors, technicians). States could provide for a minimum threshold of sales for registering; however, they could not force a business to register based solely on a business’ volume of sales if they did not have any physical presence.
These precedents were established long before the rise to prominence of internet sales, when the closest equivalent was catalogue sales (see National Bellas Hess v. Department of Revenue, 386 U.S. 753 (1967), Quill Corp. v. North Dakota, 504 U.S. 298 (1992)) However, recently states have grown increasingly frustrated with the loss of tax revenue and have been challenging these precedents on the basis that they are outdated and were formulated at a time that does not square adequately with today’s economic reality.
For more information, download the document below.
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