The most common questions asked by business undertaking their due diligence process of whether or not to do business in Canada involve taxes. The primary concern is to be able to clearly understand the obligations they will have related to the collection and remittance of taxes on their activities in Canada.

The starting point to understanding Canada's tax regime is that there are two levels of sales tax, Federal (National) and Provincial. Generally, the level of the activities undertaken is the determinant of whether the tax will apply.