Hi everyone,

I'm looking into possible issues with earning income from clients in other countries - I live in Canada. I would bill someone with our current tax codes in Alberta (5% GST only), but I wondered if anyone knew if this would create a problem with taxes, or does it matter where the person using my services lives, as long as they are charged with my cities tax rates? Any help would be appreciated! Thank you!

Lindsay

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http://www.avirtualassistant.ca

While you're best to confirm details with an accountant, as I Canadian VA I do not charge taxes to a client that is outside of Canada (my client load is about 50/50 split).

My clients in the US are charged in US dollars, with no additional taxes and Canadian clients are charged the required taxes. As an example BC residents (I live in BC) are charged HST, as are Ontario clients since they both have HST. But if I had a client from AB I would only charge the GST. That's how I had it explained to me, but again I'd suggested speaking with an accountant to confirm the requirements for your province.

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Renee Shupe, Become a Techie Virtual Assistant
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Hi Renee, thank you for this advice. I'm checking with an accountant, but I thought I would post and ask what other VA's are doing. I was under the understanding that taxes should be charged according to the tax rates of the city that business operates in.
Thanks again, I'll post when I hear back from the accountant.

Lindsay

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http://www.avirtualassistant.ca

Hi Lindsay,

I would agree with Renee. The GST is a Canadian tax, only applicable to Canadian clients and again, HST/GST charged provincially accordingly.

But, definitely check with your accountant, always the best resource for such questions. Good luck!

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Kate V. Kerans
Kerans Virtual Assistance

Thanks Renee & Kate! I spoke to my accountant. She said to charge tax accordingly for each province, but none for the states, and to charge in Canadian dollars.

Renee, I'm curious because you said you charged US clients in US dollars, I'm wondering if my accountant is not giving me the correct information. Is there any information you can give me since you have US clients? Thanks in advance!

I hope you ladies had a great thanksgiving!

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No your accountant is probably giving you clear information. I have to go through some hoops, as in tracking the conversion rates etc when I charge in US Dollars for my US clients. It's more convenient for them, but more paperwork on my end.

Because ultimately since you're Canadian everything needs to be in Canadian Dollars. For me, since the majority of my clients are US, I find it easier to communicate to them using US dollars vs Canadian.

So it becomes a preference and something you're accountant is going to have to deal with, so it's probably a good thing to go with their advice.

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Renee Shupe, Become a Techie Virtual Assistant
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