Do I need to charge GST to American (non-Canadian) customers?
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.
If the client is registered for GST, then you should charge them GST.
These are the rules that apply to services. As a general rule, goods that are exported outside of Canada and services rendered to non-residents are zero-rated under the GST/HST rules. This means that they’re technically taxable, but at a rate of 0%, you don’t have to charge anything. You can still claim input tax credits on the taxes you pay as part of producing the goods or rendering the services.
While the general rule is straightforward, there are many exceptions. For example, any services you provide relating to real estate located in Canada are taxable. For intangible property or services, the law contains place-of-supply rules that help to determine where a supply is considered to have been made (and therefore, its tax status). It’s also important to make sure you’re dealing with a true non-resident. Many foreign companies have a substantial physical presence in Canada and may be considered a resident for GST/HST purposes. Some may even be registered with the Canada Revenue Agency.
This is a high-risk area, so if you are selling services outside of Canada, ask your accountant for advice on your specific circumstance.
You can request a GST ruling from the CRA by calling this number: 1-800-959-8287