3 ms·

Part hosting, part consulting. For Canada this causes weird situations: we have to charge our province's taxrate to clients in other provinces, and their taxra

• jacquesm 4y ago
  Hosting services are provided where the servers are located, consulting services are provided where the service is performed, for instance if you are consulting 'on site' then it might be construed that you are delivering the service in that location. This can get pretty tricky. Our company is lucky in the sense that the report that we write is clearly sent to the customer which has nothing to do with on-site interviews, there is a very good chance the customer and the target are in different countries (or even on different continents). So we have a very clear tax situation which is just based on the location of the customer and not on the service rendered or where it was rendered because we don't actually work for the target company. But in many cases it is not that simple. The best thing you could do if you want to avoid long term risk (up to 7 years where we legally reside) is to ask a tax lawyer for their legal opinion. It will still not absolve you from the responsibilities but it will give you much more support in case there is a problem.