Canadian Tax Calculation and Remittance for Intermedia Resellers
As required by Revenue Canada, Intermedia* collects and pays the appropriate sales taxes (Goods and Services Tax (GST)/Harmonized Sales Tax (HST) and, if applicable, Provincial Sales Tax (PST)/Quebec Sales Tax (QST) on all sales made into Canada. Therefore, when a reseller purchases goods or services from Intermedia to be resold to a customer with a service address in Canada, Intermedia will bill the reseller for all applicable Canadian taxes, including the taxes due on any telecommunications services being purchased. The reseller is responsible for calculating and billing the end customer for all applicable Canadian taxes – and for collecting and remitting those taxes to the applicable Canadian tax authorities.
Deductibility of GST/HST and QST
Any GST/HST or QST Canadian taxes that Intermedia bills to a reseller (referred to as “output taxes”) can be deducted by the reseller on its GST/HST or QST (as applicable) filings for the taxes that the reseller collects from its customer (referred to as “input taxes”). As a result, the reseller should be able to recover any GST/HST and QST that the reseller pays to Intermedia, so long as the reseller collects and correctly reports the applicable taxes from the end customer.
Resale Certificates for PST
If the reseller is reselling the Intermedia service into a province that imposes a PST (British Columbia, Manitoba or Saskatchewan) and can provide Intermedia with a valid resale certificate for the PST, Intermedia will not bill the PST to the reseller.
Note: QST is a form of provincial sales tax; however, as noted above, QST is recoverable, so the province of Quebec does not issue tax resale certificates.
* Whether through Intermedia.net, Inc. or its wholly owned subsidiaries AccessLine Communications Corporation or Intermedia.net Technologies Canada, Inc.