AI agents for business finance: what they can and can't do
What AI agents can do in bookkeeping, close, collections and compliance today, where a person must stay in charge, and how to judge a product.
The short answer
Usually no. If you are registered for GST/HST, a service you supply to a client who is not resident in Canada is generally zero-rated, meaning you charge 0%, under Part V of Schedule VI to the Excise Tax Act as explained in the CRA's GST/HST Memorandum 4-5-3. The main exceptions are services rendered to an individual while they are in Canada and services connected to real or physical property in Canada, and you must keep evidence that the client is non-resident.
The rule: exported services are zero-rated
A zero-rated supply is still a taxable supply; it is taxed at 0%. That distinction matters, because it is different from an exempt supply and it means the work stays inside the GST/HST system you registered for. The CRA's GST/HST Memorandum 4-5-3, Exports of services and intangible personal property (December 2023), sets out two routes that usually cover work for Nigerian clients:
- Section 7 of Part V of Schedule VI, the general provision: a service supplied to a non-resident person is zero-rated unless it is specifically excluded.
- Section 23: advisory, consulting and professional services supplied to a non-resident are zero-rated, with their own exclusions. These services are taken out of section 7 and handled here instead.
So a Lagos company buying your copywriting, software development, design, or management consulting, delivered from your desk in Canada, is normally a zero-rated export.
The exceptions that catch freelancers
The memorandum lists exclusions. The ones most likely to apply to Nigerians in Canada serving Nigerian clients are:
| Situation | Why it may not be zero-rated |
|---|---|
| You tutor or coach a Nigerian individual who is physically in Canada at the time (for example, visiting family) | Section 7 excludes a service rendered to an individual while that individual is in Canada |
| You advise a Nigerian client on buying or renting a property in Toronto | Services in respect of real property situated in Canada are excluded |
| A client ships you equipment to repair or modify in Canada | Services in respect of tangible personal property in Canada when the service is performed are excluded from these provisions |
| You provide litigation-related services to an individual in Canada | Excluded from section 23, except services before litigation begins |
| You act as the client's agent arranging supplies in Canada | Agency services are dealt with separately |
If a supply falls into an exclusion, GST or HST may apply at the rate for the province where the supply is made, under the place-of-supply rules. That is a narrower question to take to the CRA or an accountant.
Evidence the CRA expects you to keep
Zero-rating depends on the customer being non-resident, and the burden is on you. The memorandum says suppliers must verify and keep satisfactory evidence, and for the property-related exclusions to keep contracts, purchase orders or invoices supporting the decision. For a Nigerian business client, a sensible file holds:
- the signed contract or engagement email naming the Nigerian entity and its address;
- the client's CAC registration details or other proof it is a Nigerian business;
- invoices addressed to the Nigerian entity;
- proof that payment came from outside Canada;
- for individuals, a declaration of non-residence with a full home address, which the memorandum describes alongside another check such as matching billing details.
A quick test before you invoice
Ask three questions about each job. Is the client resident outside Canada, and can you prove it? Was any part of the service performed for a person while they were physically in Canada? Does the service relate to land, buildings or goods located in Canada? If the answers are yes, no and no, the supply is very likely zero-rated. If any answer is unclear, for example a Nigerian company with a Canadian subsidiary that actually receives the work, read the memorandum's examples or ask the CRA before you leave GST/HST off the invoice.
What to write on the invoice
Show your GST/HST registration number, the amount of the service, and GST/HST at 0% with a short note such as "zero-rated export of services to a non-resident". Clear wording saves time if the CRA reviews your return and helps the client's own accounts. If a client asks for your number for its own records, see when a Nigerian client asks for your GST number.
You still report the zero-rated sales on your GST/HST return, and as with other taxable supplies, the GST/HST you paid on related business costs can generally still be claimed as input tax credits. That is one practical advantage of zero-rating over exemption.
GST/HST and Nigerian taxes are separate
Zero-rating in Canada does not stop Nigerian taxes applying at the client's end. A Nigerian company paying a non-resident for professional or consultancy services is generally expected to withhold 10% income tax under the Withholding Regulations 2024 (PwC Nigeria highlights, July 2024). That is an income tax deduction, not VAT, and it is handled through Canadian income tax, not your GST/HST return. See Nigerian withholding tax on your fees.
If you are not registered
If you are not registered for GST/HST, you do not charge it at all, zero-rated or otherwise. Whether you must register depends on the CRA's small supplier rules; check how zero-rated export sales count towards the threshold on the CRA's registration pages before you assume you are below it.
Where Pryme fits
Clean records are most of the work here. A Pryme Business Account can receive naira or dollar payments from Nigerian clients in an account separate from your personal money, and invoicing lets you keep invoices and payments together. The Finance agent can prepare a list of non-resident sales for your accountant to check. See also tax on Nigerian client income.
Questions people ask
Do I charge HST to a company in Nigeria?
Generally no. Services supplied to non-residents are zero-rated under Part V of Schedule VI, as the CRA's memorandum 4-5-3 explains, unless an exclusion applies.
Is zero-rated the same as exempt?
No. A zero-rated supply is taxable at 0% and you can generally still claim input tax credits on related costs. Exempt supplies are outside the system.
What if my Nigerian client is visiting Canada when I tutor them?
A service rendered to an individual while they are in Canada is excluded from the general zero-rating provision, so GST/HST may apply.
What proof do I need that my client is non-resident?
Keep contracts, invoices, the client's registration and address, and payment records. For individuals, a non-residence declaration with full address plus another check.
Sources
- CRA: GST/HST Memorandum 4-5-3, Exports of services and intangible personal property (December 2023) · accessed Oct 2026
- PwC Nigeria: Highlights of the Deduction of Tax at Source (Withholding) Regulations 2024 (July 2024) · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.