The US and Canada may both have Federalism outlined as their constitutional structure. However, it obviously doesn’t mean they have the exact same tax system. For those businesses crossing the borders of US and Canada, it’s a must to be familiar with the tax system, probably with the help of a Cross Border Tax Specialist for both countries to avoid getting taxed higher than expected, or worse, getting double taxed.
For several years now, the US has rejected the value added tax (VAT) and has been imposing on sales tax where the percentage may vary on most states, thus an income tax on the national level. Businesses aren’t taxed on income but...
