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.

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.

***The information on this blog and website is for educational purpose only and not to be relied upon as professional advice or used for planning without first seeking professional advice. Information is subject to change without notice.***