Here’s what you need to know if you’re a freelance editor in B.C.
- There’s no need to apply for a PST registration number because professional services other than legal services are exempt from PST.
- From April 1, 2013, editors just charge GST on their work, using their existing GST/HST numbers.
- The place of supply rules stay the same as before: an editor who lives in B.C. charges a client the HST or GST rate of the province where the client is located (see the rules about place of supply). So when I work for a B.C. client, I charge 5% GST, but when I work for a company in Ontario, I charge 13% HST (list of GST/HST rates by province). And when I work for a client outside the country, I charge no tax at all.
- If you use the quick method of GST/HST accounting (and I strongly recommend it for editors), your remittance rate is now 3.6% for B.C. clients. This is the remittance rate for a service provider based in a non-participating province (which B.C. is now) to a client in a non-participating province. Your remittance rates for income earned from clients in other provinces stays the same (except PEI, which instituted HST this April 1). Don’t forget that this new rate for B.C. clients only applies to your income from April 1 onward only.
Sources for my informationB.C. Government: PST exemptions (see “Professional services” at bottom)
CRA: List of GST/HST rates by province
CRA: Place of supply rules for services
CRA: Remittance rates for businesses that provide services
As always, this is backed up by a few calls to the CRA help line.