Sales tax considerations for new businesses

Minimize losses from unrecoverable GST/HST, QST or PST

During a new company's start-up phase, founders can overlook their Goods and Services Tax/Harmonized Sales Tax (GST/HST), Quebec Sales Tax (QST), and provincial sales tax (PST) obligations and opportunities. Whether the oversight results in non-compliance or missed input tax credits/refunds or exemptions, the end result can negatively impact the start-up's bottom-line.

This is particularly relevant for technology and life sciences companies, since their products and services do not always fit squarely within the provisions of GST/HST, QST and PST legislation. However, with proper planning from the start, new companies may be able to minimize the amount of unrecoverable GST/HST, QST or PST that they might otherwise incur.

How PricewaterhouseCoopers can help

PricewaterhouseCoopers is committed to serving emerging companies with a team dedicated to providing practical solutions, including:

• Registering for GST/HST and QST to help you avoid incurring any unrecoverable sales taxes
• Determining whether GST/HST, QST, or PST apply to the products being developed for ultimate sale
• Finding out whether any PST exemptions are available for materials and equipment used for research and development or manufacturing

Contact a member of our Indirect Tax team to discuss your start-up's sales tax compliance needs.