Jeremy Scott Announces New Business Sales Tax Plan
Halifax, CA, Canada - January 16, 2026 / Jeremy Scott Tax Law /
When it comes to sales tax in Canada, one thing is clear — it’s complicated, especially if you’re doing business across borders. In a recent interview, tax expert lawyer Jeremy Scott breaks down how Canada’s indirect tax system works and what businesses can do to stay compliant — without losing their minds or margins.
From City Hall to the C-Suite
Jeremy didn’t take the traditional path into tax. After earning a business degree and a law degree from the University of New Brunswick, he started out in municipal government before realizing that his real passion was tax. That led him to a mid-sized accounting firm, where he dove into indirect taxes — the world of GST, HST, and provincial sales taxes.
“Most people go into corporate or income tax,” Jeremy says with a laugh. “But I found myself drawn to sales and commodity taxes. We’ve always had a bit of an identity crisis — are we sales tax professionals? Commodity tax? Indirect tax? I just say: sales tax.”
That niche turned out to be a good one. Jeremy’s expertise landed him a leadership position at Sobeys, one of Canada’s largest grocery chains, where he ran the indirect tax department (and later the entire tax function) for nearly a decade. There, he managed compliance, risk, and large-scale acquisitions — including the $6 billion purchase of Canada Safeway — balancing technical precision with business practicality.
The View from Both Sides of the Desk
After ten years in-house, Jeremy returned to consulting with a perspective few possess — he’s been both the advisor and the client. He understands the technical side but also how tax policy actually plays out inside large businesses.
“It’s one thing to write a technically correct memo,” he says. “It’s another to make sure that policy is implemented across accounting, operations, and logistics teams. Tax doesn’t live in a vacuum.”
How Canada’s Sales Tax System Really Works
So, what makes sales tax north of the border so unique?
For starters, Canada has both a national and provincial tax structure. The federal GST (Goods and Services Tax) applies across the country at 5%. Some provinces — like Ontario and Nova Scotia — have harmonized their provincial sales tax with the GST, creating the HST, a single combined VAT (value-added tax) that can run as high as 15%.
Other provinces, like Quebec, maintain their own systems. Quebec’s QST closely mirrors the GST but is separately administered. Meanwhile, British Columbia, Manitoba, and Saskatchewan each operate independent PSTs (Provincial Sales Taxes) that behave more like U.S. state sales taxes.
“Every province has its quirks,” Jeremy notes. “When you’re working across borders, especially in provinces with their own PSTs, you have to relearn the rules every time.”
The “Netflix Tax” and the Digital Shift
In recent years, Canada introduced what’s informally called the “Netflix tax” — a simplified registration regime for non-resident digital service providers such as streaming platforms, e-commerce sellers, or SaaS companies with Canadian customers but no physical presence.
“We moved from asking, ‘Are you carrying on business in Canada?’ to, ‘Are you making digital sales to Canadian consumers?’” Jeremy explains.
Even if a company isn’t physically in Canada, if it exceeds roughly $30,000 in annual sales to Canadian consumers, it may need to register and collect GST, HST, or the provincial equivalent.
The Import Puzzle: Tax at the Border
One of the most common surprises for companies doing business in Canada? The GST charged on imports.
When goods cross the border, a 5% GST is collected by the Canada Border Services Agency (CBSA). Many businesses overlook this—often not realizing it’s a recoverable tax, meaning it can be claimed back later.
“I’ve run into a lot of clients who don’t even realize they’ve paid GST at the border,” Jeremy says. “It’s buried in their import paperwork or broker fees. But it’s money they can often recover.”
Structuring Smart — and Staying Out of Trouble
For non-resident businesses, being drawn into Canada’s tax net isn’t always inevitable. With the right transaction structuring, organizations can sometimes minimize exposure.
“You can structure your transactions so they take place outside of Canada,” he notes. “In those cases, the Canadian customer becomes the importer of record and handles all the taxes. But you have to plan that deliberately.”
Why Compliance Starts with Communication
When asked about goods getting stuck at the border, Jeremy chuckled — not because it’s funny, but because it’s usually avoidable. The biggest culprit? Bad paperwork.
Incorrect HS codes, incomplete declarations, or mismatched importer details cause most border holdups. “It’s not always a tax issue,” he explains. “Sometimes it’s just customs. But either way, better coordination across logistics, tax, and operations can prevent a lot of headaches.”
Bringing It All Together
Navigating Canada’s multi-layered sales tax landscape isn’t easy — but it’s not impossible either. Businesses that take time to understand how GST, HST, and PST systems interact can uncover efficiencies and avoid unnecessary risk.
“Whether you’re a local company or an international player, the key is aligning your tax approach with your business goals,” Jeremy says. “When you look at tax through that lens, it becomes less about compliance — and more about smart strategy.”
To learn more about aligning your tax strategies with business growth, visit jeremyscott.ca.
Contact Information:
Jeremy Scott Tax Law
168 Hobsons Lake Drive, Suite 301
Halifax, CA, Nova Scotia B3S 0G4
Canada
Jeremy Scott
+1 902-493-7201
https://jeremyscott.ca
