Canadian webmasters pushing US affilates - do you have to pay GST? help.. - Page 2 - GoFuckYourself.com

woj · 09-09-2005, 06:54 PM

50.........

directfiesta · 09-09-2005, 07:00 PM

Quote:

Originally Posted by woj

50.........

like a clockwork

WarChild · 09-09-2005, 07:17 PM

Quote:

Originally Posted by directfiesta

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 " )

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

ricks · 09-09-2005, 07:19 PM

Quote:

Originally Posted by directfiesta

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 ....

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

[Dan] · 09-09-2005, 07:26 PM

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

[Dan] · 09-09-2005, 07:36 PM

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.

gideongallery · 09-09-2005, 08:17 PM

Quote:

Originally Posted by WarChild

Ummm ....

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

daveylapoo · 09-09-2005, 08:28 PM

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.

RegUser · 09-09-2005, 08:36 PM

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.

directfiesta · 09-09-2005, 09:00 PM

Quote:

Originally Posted by ricks

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

You really should learn to read and speak...

Quote:

You idiot

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

Quote:

You are an idiot

or

Quote:

You're an idiot

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

Quote:

Originally Posted by ricks
You don't charge American companies or people GST, even if they buy something in a store in Canada they get a GST refund,

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

Learn to read and write and probably speak.

Beejeebers · 09-09-2005, 09:02 PM

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.

directfiesta · 09-09-2005, 09:08 PM

Quote:

Originally Posted by [Dan]

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.

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

Quote:

Example 2

A GST/HST registrant operates an interactive Web site. Subscribers pay a fee to access the site, which features digitized content, including music, videos, games, and other activities. The subscribers are not able to download permanent copies of the content to their computers, but can interact with it while on-line. They are provided with a password to enter the site, and can access it at any time from any location.

This is a supply of intangible personal property, which is made in Canada as there are no restrictions as to where the intangible personal property may be used. The registrant will be required to charge its non-resident subscribers tax at the rate of 7% or 15%, as the supply is not a supply of intellectual property, and therefore is not zero-rated under the provisions of section 10 of Part V of Schedule VI.

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 ...

jpoker · 09-09-2005, 09:59 PM

Quote:

Originally Posted by jojojo

omfg this topic is so frustrating...

If you are a canadian webmaster and most of your income comes from US based companies that pay you as an affiliate do you have to pay GST on that income or not?

What about my US based clients that pay me as a consultant do I have to pay gst on that?

Please tell me I don't have to pay this bill I just got for $30,000 for gst

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

09-10-2005, 06:09 AM

Quote:

Originally Posted by directfiesta

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 ...

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

Monk · 09-10-2005, 08:14 AM

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

Paul Waters · 09-10-2005, 11:10 AM

Quote:

Originally Posted by [Dan]

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.

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

Indeed · 05-19-2006, 08:06 PM

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.

09-09-2005, 06:54 PM	#51
woj <&(©¿©)&> Industry Role: Join Date: Jul 2002 Location: Chicago Posts: 47,882	50......... __________________ Custom Software Development, email: woj#at#wojfun#.#com to discuss details or skype: wojl2000 or gchat: wojfun or telegram: wojl2000 Affiliate program tools: Hosted Galleries Manager Banner Manager Video Manager Wordpress Affiliate Plugin Pic/Movie of the Day Fansign Generator Zip Manager

09-09-2005, 09:02 PM	#61
Beejeebers Confirmed User Join Date: Oct 2004 Posts: 290	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. __________________

09-09-2005, 07:26 PM	#55
[Dan] Confirmed User Join Date: Oct 2001 Location: Somewhere in time Posts: 143	Straight from the horse's mouth: http://www.cra-arc.gc.ca/E/pub/gm/b-090/b-090-01-e.html

09-09-2005, 07:36 PM	#56
[Dan] Confirmed User Join Date: Oct 2001 Location: Somewhere in time Posts: 143	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.

09-09-2005, 08:28 PM	#58
daveylapoo Confirmed User Join Date: Dec 2003 Posts: 423	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.

09-09-2005, 08:36 PM	#59
RegUser Confirmed User Join Date: Nov 2004 Posts: 1,472	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.

09-10-2005, 08:14 AM	#65
Monk Confirmed User Join Date: Jan 2003 Location: Canada Posts: 631	so much mis-information in one little thread... amazing.

05-19-2006, 08:06 PM	#67
Indeed Confirmed User Join Date: Oct 2002 Posts: 1,892	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.