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Thoughts and ideas from Akons Associates Inc.

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#1-Should GST/HST be Charged on Tips

Tips or service charges are not usually added to a bill. In general, consumers tip a percentage of the amount of a bill to service providers such as to waiters, waitresses, barbers, hairdressers, and taxi drivers. The percentage and whether the tip is calculated on the amount of the bill before or after taxes depends on the practice of the particular consumer.

A tip or gratuity that is freely given by a customer, for example, cash not recorded on a bill, is not subject to the GST/HST. However, if you add a mandatory or a suggested amount to the customer's bill as a service charge, you have to charge GST/HST on that amount.

  • #2-Not Sure of your Canadian Residential Status
    July 9, 2021 at 9:30 PM

    If you land in Canada and are not sure of your residential status, fill up form NR74 and submit/send to Canada Revenue Agency to determine the status.


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