vincent15000's avatar

Stripe and taxes in Canada and USA

Hello,

Can somebody help me understand all this ?

Canada	ca_bn	Numéro BN canadien	123456789	Non
Canada	ca_gst_hst	Numéro GST/HST canadien	123456789RT0002	Oui
Canada	ca_pst_bc	Numéro PST canadien (Colombie-Britannique)	PST-1234-5678	Non
Canada	ca_pst_mb	Numéro PST canadien (Manitoba)	123456-7	Non
Canada	ca_pst_sk	Numéro PST canadien (Saskatchewan)	1234567	Non
Canada	ca_qst	Numéro QST canadien (Québec)	1234567890TQ1234	Oui

https://docs.stripe.com/invoicing/customer/tax-ids#validation

There are several tax types.

My client told me that in Canada, there are sometimes 2 taxes : one tax for Canada and another one for the province.

Does Stripe need both ca_bn and ca_gst_hst ? Or just the ca_gst_hst ?

And I don't find the tax types for the United States (just us_ein), but I have read that the tax will depend on the state.

Thanks for your help.

V

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judia's avatar
judia
Best Answer
Level 1

In the United States, taxes are only charged if you make a certain amount of money in a state. If you're below the threshold, there's no need to charge tax. However, you still need to pay taxes on money you make in the US, which depends on your filing type, earned amount, and several other factors. Each state has a different tax rate, and different tax laws for digital purchases. Tax charges like tariffs apply only if you import goods that are over $800. Underneath that threshold, and you don't have to pay a tariff. If you're a Canadian based company operating in the United States, you have to file documentation for a non-domestic business. That may or may not come with it's own set of taxes. Generally speaking, you only need to give your EIN for some payment systems because taxes are handled separately. For instance, if your net revenue is 1MIL in Pennsylvania, but you only earned 50K in New York, you only charge sales tax in Pennsylvania. You have to register your business in Pennsylvania, and file some documents to collect sales tax legally. I recommend consulting with a business lawyer to get it right. They can help you sort it out. I do not recommend just going on advice given on here.

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vincent15000's avatar

@judia Ok thank you.

I don't know anything with law and transactions with Canada and US, my client is french and he has to get informations about this, not me.

What is important for me is just what I have to implement on the Laravel application.

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