Defining Goods and Service Tax (GST)
As a business owner in Canada, you must be aware of your obligations related to the GST, also known as the Good and Services Tax. The GST is a consumption sales tax meaning that the person who is buying the product has to pay the tax rather than the seller paying it. The party buying a service or good subjected to this tax must therefore, pay in on each affected transaction.
This GST tax is also a form of percentage consumption tax, meaning that the total amount of tax charged depends on the cost of the service or good in question prior to taxes. Although the consumer has to pay the GST tax, that money must then be remitted to the government by the seller. The GST is applied to many services and goods changing hands between businesses, organizations, and individuals, although some items are exempted.