Summary
A practical overview of business tax rules in the US, Canada, and India—helping you plan ahead and avoid penalties.
Introduction
Operating in the US, Canada, or India—or selling across borders—introduces different tax rules, registrations, and deadlines. A proactive approach saves money and reduces stress.
United States: Core Points
- Federal EIN; state income/sales tax registrations.
- Quarterly estimated tax payments.
- Sales/use tax nexus rules for multi-state obligations.
- 1099 reporting; W-2 and payroll compliance.
- Common pitfalls: misclassifying workers, late estimates.
Canada: Core Points
- GST/HST registration based on thresholds.
- Annual T2 corporate filing (plus provincial returns).
- Payroll source deductions (CPP/QPP, EI).
- Sales tax varies by province (GST/PST/HST).
- Common pitfalls: incorrect place-of-supply, late remittances.
India: Core Points
- GST registration and monthly/quarterly returns.
- TDS/TCS compliance and timely deposits.
- Advance Tax quarterly installments.
- Books, audit requirements, e-invoicing where applicable.
- Common pitfalls: wrong GST classification, ITC mismatches.
Cross-Border Best Practices
- Centralize contracts, invoices, and tax documents.
- Evaluate where you create tax presence (nexus/PE).
- Align invoicing with correct tax rules and e-invoicing.
- Use a compliance calendar for each jurisdiction.
- Reconcile returns with ledgers frequently.
Planning Tips
- Choose the right entity structure for tax efficiency.
- Monitor thresholds that trigger new obligations.
- Leverage credits and deductions like R&D incentives.
Conclusion
With the right systems and guidance, multi-country compliance becomes manageable. Plan ahead, document carefully, and review regularly.
Need a tailored compliance plan? VueBooks can help you register, file, and optimize year-round.