I no longer have to pay any taxes in Canada. My taxes are up to date and filed without GST payment. I'm happy.

Hmmm....

Not true as an absolute. Perhaps *you* are retarded.

Where I do consulting work is important. If I do the work in Canada, it is subject to GST. If the cheque is cut in the US, it does not change this.

*Where* internet work is performed has not been defined. That is why I said in a previous post that the situation is ambiguous.

We had revenue Canada come after us for this.

We had to go through a ruling and received a letter from them confirming that on our affiliate sales through US companies we DO NOT have to pay GST on them.

So if we ever run into problems with it again we can show Rev Canada their own ruling :)

Of course this ruling was with relation to our company and I can't gaurantee that they would rule the same for you so don't take this as gospel.

You don't charge American companies or people GST, even if they buy something in a store in Canada they get a GST refund, it's that simple, feel free to donate though anytime, they will cash your check. :helpme

Having them accept that your affiliate income is a *sale* as opposed to a commission is highly significant.

You are totaly correct that the ruling applies to your company only. But it can be useful in an argument.

If you would be willing to send conact info to:

[email protected]

for future reference I would be greatful!

Cheers

In english ?????

You don't charge American GST when they buy in the store ????

You live on a " reserve " ?????

How many stupidities can you say in one thread ....

If an American goes to a Canadian McDonalds, they pay GST.

There is no refund for it.

They only get a refund if they take the purchase back home with them.

How do you take a service back home with you? That is the complexity.

can u icq me please 333485092

I could be wrong about this, but don't American's get the GST they paid for Hotel Rooms back? Maybe that's just for the 8% Hotel Room Tax in BC?

Edit: Quick research shows this may be the one exception.

Now, if a province wish to make a promo and " reimburse " the GST to the consumer ...

Just like stores run these " We pay the GST/PST " ( Note that they are not allowed to say/write " No GST/PST " )

50.........

like a clockwork :1orglaugh

Like I said, I think it's an exception.

Plus, the one delightful exception to the 'you can't claim on things you use while you are in Canada' rule is hotel accommodation. You can get a full refund on the GST on hotel room stays, as long as you do not stay for more than a month in a single hotel.
http://www.thetravelinsider.info/2002/0301.htm

These changes took effect July 1, 1996. GST charged on hotel and motel accommodation is also eligible for refund, provided that the stay in each hotel or motel does not exceed one month.
http://www.wonline.com/taxes.html

You idiot, American's get GST refunds when travelling in Canada. :1orglaugh

Straight from the horse's mouth: http://www.cra-arc.gc.ca/E/pub/gm/b-090/b-090-01-e.html

Specifically (from http://www.cra-arc.gc.ca/E/pub/gm/b-090/b-090-04-e.html) :

Example

A non-resident person who is not registered for GST/HST purposes pays a fee to a registered Canadian Web site owner to place banner ads for its business on the Web site.
The Canadian Web site owner is not required to collect the GST/HST on the fee, as the supply to the non-resident is an advertising service that is zero-rated under section 8 of Part V of Schedule VI.

the point i was making it not an excemption but a rebate, you still have to pay the tax but you can apply for a tax credit to get the money back.

However like most government taxes they make you jump thru hoops to get it

Hmmm...

It's been said before and I'll say it again - GET AN ACCOUNTANT. If you plan on making this a long term source of income, best get a good one too.

There seems to be many opinions on the topic, but really, there's only one that matters. The GST guys.

You may be surprised to find out how it really works. I'm going to *guess* that you should have a GST number regardless; it will actually work to your advantage in that you may claim back that GST on all business related expenses.

Beyond that, I throw out the term 'zero rated'...

There's of course much more to it, but my situation is likely a little different than yours. I'd hate to steer you in the wrong direction.

Get an accountant.

you guys are discussing straight from what you think should be right. But what about checking with CCRA?? What about reading what the site explains????
I have discussed this with CCRA. There is no known clear case here. however whenever one canadian provides services to another canadian in canada, you GOTTA pay GST. NO MORE QUESTIONS OKIE??
IF in same province you may have to pay PST as well.
Now selling to US customers is not same as selling to canadians and although you have to report income and pay tax, it is not GST/PST taxable.

You really should learn to read and speak... :1orglaugh

What type of fucking engrish is that... try:

or

Now that I finished giving you your yearly course, read your previous post, and I quote:

So how and why they get a refund if you don't charge...

Learn to read and write and probably speak.

A supply of intangible personal property or a service made in Canada, including supplies made by electronic means, may be relieved of tax under the export provisions of the Act that zero-rate certain supplies of intangible personal property and services made in Canada to a non-resident person.

There are specific zero-rating provisions for certain exported services in Part V of Schedule VI to the Act, including some of those excluded from the general provision in section 7, such as:

A supply of an advertising service made to a non-resident person who is not registered for GST/HST purposes at the time the service is performed (section 8);

The term "zero-rating" is your saviour.

from you own link, and confirming the interpretation I received and that I related here:

The only new and CONFUSING thing is "not able to download permanent copies"

So sites with DMR , you pay... Dating site also and so on ...

Now I heard ricks has volunteered to be a test case ... :1orglaugh

You shouldn't charge GST for services sold to non canadian companies. In other words, if you are selling traffic to an american company then you don't need to charge that american company any gst. Of course, if you get audited you'll need to be able to prove that the income originated from an a non canadian company so make sure you or your book keeper are keeping appropriate documentation.

The Canada Revenue Agency actually audited our GST return last year. Basically they wanted to know why we were putting in GST return that requested a rather large refund. My accountant provided them with all the documents that they requested along with a nice cover letter explaining that we sell adult traffic to american companies and they paid us all owed GST. Even our accountant was shocked. He figured they would find something to claw back even if it was only a few bucks.

Basically get a good accountant and you'll save yourself a lot of hassles
and hair pulling.




- jpoker

Your example talks about operating your own pay site in Canada. This is clearly different than acting as an affiliate for US companies.

so much mis-information in one little thread... amazing.

Great link! Thank you. I was not aware that they had made a ruling in this area.

:thumbsup

directfiesta,
You seem to have a good experience with this matter, I was wondering if I could contact you directly? I just have a few questions regarding this subject.