LEGISLATIVE BRIEFING GST Problem for Canadian Web Sites (Follow up briefing note)
February 05, 2007


Response to the GST Legislative Alert was higher than expected; more than 150 companies requested the CAIP Alert, including one company providing details of a related GST/HST problem illustrated by their experience in setting up an online auction site in Canada.

As a Canadian-based business, providing services in Canada to Canadians, the company in question was required to collect GST from its customers for auction listing fees. However, companies with a physical presence in Canada (inclusive of a ca domain) and servers located outside of Canada are not obliged to collect such fees. Full details are provided in the CAIP Briefing Note, available upon request.

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Please request your "GST Briefing Note" from the Canadian Association of Internet Providers (CAIP), by contacting johnreid@attglobal.net It includes supporting documentation from the CRA (Canada Revenue Agency) and related sources.


CAIP, a Division of CATAAlliance:CAIP (Canadian Association of Internet Providers) represents internet service providers across Canada with a mandate of fostering the growth of a healthy and competitive Internet service industry in Canada through collective and cooperative action on Canadian and international issues of mutual interest.