Hi…I started working on the contract and need to get some advice as to whether I’m supposed to charge tax on my consulting services.
I’m in the Toronto area. I have one part-time contract position (2 days a week) where I’m on the payroll so twice a month I have my pay deposited and taxes are taken off my pay. I’ve started another part-time contract position where the arrangements are that I will invoice them for the hours I worked…also a couple of days a week. I’m not sure when I create the invoices am responsible for charging/remitting tax. I earned approx. 24,000 this year on this contract.
You don’t have to charge a GTS/HST at this point in time unless you already have a GST/HST account.
If you don’t you need to open one and start charging tax when your income exceeds the threshold level of $30,000 in a year.