GST/HST?: Businesses Purchasing from Non- Residents

Certain non-resident vendors are required to register for and collect GST/HST under a new simplified GST/HST registration regime that commenced July 1, 2021. While the rules are very complex under the simplified regime, GST/HST is not required to be collected on the supply of goods or services to customers registered for GST/HST. To avoid being charged GST/HST, the customer must provide their GST/HST registration number to the non-resident vendor. Where GST/HST is paid in error to a non-resident vendor registered under the simplified regime, the amount is not recoverable by claiming an input tax credit or filing a claim for tax paid in error.

One challenge business customers face is determining whether a non-resident vendor is registered under this simplified regime.

In the summer of 2023, CRA announced that non-residents registered under the simplified method would have their GST/HST accounts automatically transitioned from an RT0001 identifier to RT9999. This new identifier should be noted on all receipts. When a GST/HST registrant purchases from a vendor with this identifier, the purchaser should provide the vendor with its GST/HST number to prevent being charged GST/HST.

ACTION: If a GST/HST registrant purchases from a non-resident vendor with a GST/HST number ending in RT9999, the purchaser should provide their GST/HST registration number to avoid paying GST/HST.

Redistribution of this material is prohibited.