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Q: USA TAX ID and Canadain TAX Rate ( Answered 5 out of 5 stars,   0 Comments )
Subject: USA TAX ID and Canadain TAX Rate
Category: Business and Money > eCommerce
Asked by: umarmukhtar-ga
List Price: $5.00
Posted: 13 Oct 2006 04:14 PDT
Expires: 12 Nov 2006 03:14 PST
Question ID: 773167
We are running a webdesigning bussiness from a south asian country
from last 3 yrs.Its a partnetship firm. We mostly get orders from
differnt free lancer web sites. One of our partner residing in Canada.
we registered our bussiness in Canada, but never registered with CRA
(canada revenue agency. Now we have got some web devlopment bussiness
from a canadain firm. My questions are
1- I heard there is no GST on services. How much tax (GST/PST) we
suppose to charge.
2. Non of our partner is US resident. but we do some bussiness with US firms.
how can we get a TAX id in US. how can we register our bussiness in
US. (we dont have any US bank A/c)
Subject: Re: USA TAX ID and Canadain TAX Rate
Answered By: keystroke-ga on 15 Oct 2006 09:34 PDT
Rated:5 out of 5 stars
Hello umarmukhtar,

Thank you for your question.

Actually, the GST (Goods and Services Tax), as you can see by its
name, is a tax on both goods AND services. If you provide services to
a Canadian, you must charge the GST tax of six percent.

Wikipdia entry-- GST


The methods needed to get a tax identification number, or employer
identification number (EIN), in the US are not difficult.
Unfortunately, because you have a foreign address, you will not be
able to apply online but will have to apply through the regular postal

IRS-- EIN application,,id=102767,00.html

The form is here: (pdf file)

You will mail it to the very last address on this page:,,id=111138,00.html

It should be relatively simple from there.

You do not register with the national government of the US for
businesses; you would register with whatever states you do business
in. If there is one particular state that you do repeat business in,
register in that state. You can find the rules governing incorporation
on that state's website.  You would pay tax to that state for income
generated there. You do not need a US bank account to incorporate in
the US, as far as I know.

Search terms:
tax id number application

If you need any additional clarification of my answer before rating,
let me know and I'll be glad to assist you.

umarmukhtar-ga rated this answer:5 out of 5 stars
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