We are a US Corporation that has paid a Canadian individual a commission on the sale of equipment into Canada. Do we need to provide a 1099 type form to him and the country of Canada?
My company is US based. We sold equipment into Canada with the assistance of a Canadian. We paid the Canadian individual the commission. At no point was the individual in the US when he performed the services. The services were performed to help us sell the product to the Canadian company.
Based on this - I am guessing we do not need to provide any documentation to the US or the Canadian company.
If your company doesn't do any business activities in Canada - there is no need to report anything to Canadian taxing authorities.
So far as services were NOT provided in the US - no need to report such services to the IRS - but in case of the audit - you should be able to proof that.That is why you might be advised to retain signed form W8BEN and other documents to whom the payment made, for what services and where services were performed.