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

jojojo · 09-09-2005, 12:10 PM

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

GTS Mark · 09-09-2005, 12:16 PM

Call a good tax accountant local to you, they can assist you with this.

DH

jojojo · 09-09-2005, 12:18 PM

Quote:

Originally Posted by DrinkingMODerately

Call a good tax accountant local to you, they can assist you with this.

DH

thx - but surely there are some canadian webmasters already dealing with this??

Anyone know a goog tax accountant here in vancouver that has experience with this internet cross border bs?

chowda · 09-09-2005, 12:19 PM

if its REPORTED revenue or income, then it has to be tax. technically govt states that u have to report revenue/income that u made globally.

WarChild · 09-09-2005, 12:23 PM

Quote:

Originally Posted by chowda

if its REPORTED revenue or income, then it has to be tax. technically govt states that u have to report revenue/income that u made globally.

Way to totally miss what he was talking about.

GST is not income tax.

chowda · 09-09-2005, 12:26 PM

Quote:

Originally Posted by WarChild

Way to totally miss what he was talking about.

GST is not income tax.

sooorry, i was looking at bdjufs sweet ride and got carried away.

with the sweet hookups..

jojojo · 09-09-2005, 12:26 PM

so there is no canadian webmasters dealing with this???

wtf same as all the other threads... nobody that can actually say yes or no.

WarChild · 09-09-2005, 12:35 PM

Quote:

Originally Posted by jojojo

so there is no canadian webmasters dealing with this???

wtf same as all the other threads... nobody that can actually say yes or no.

Quiet has posted about this before. I believe the legality of it is that you would need to pay GST on sales originating inside of Canada. The crux of it is how do you show proof where your sales are actually coming from.

Consulting work, done for American companies should be GST exempt, I believe.

In the end, you're going to need an accountant. You'd be silly to take advice from a message board, really.

Beejeebers · 09-09-2005, 12:36 PM

GST is not an income tax as was already stated. It's a "goods and services tax" paid when YOU purchase a good or service IN Canada.

You need to re-read whatever you have in front of you, because you're confused. You may owe INCOME tax of $30k, (plausible if you made more then $100k in a year). That said if I had a $30 k tax bill and didn't understand it, I would be seeking professional advice asap.

jojojo · 09-09-2005, 12:38 PM

Quote:

Originally Posted by WarChild

Quiet has posted about this before. I believe the legality of it is that you would need to pay GST on sales originating inside of Canada. The crux of it is how do you show proof where your sales are actually coming from.

Consulting work, done for American companies should be GST exempt, I believe.

In the end, you're going to need an accountant. You'd be silly to take advice from a message board, really.

Thanks Warchild...

I don't own any paysites and most of my affiliates are US based companies... those that are canadian are less than $30k/yr...

I will be consulting an accountant as I don't think rev canada is going to deal with me and so oh ok you don't ow then :/ I just wanted to find out the bottom line if I owe all this $$ or not :/

jojojo · 09-09-2005, 12:39 PM

Quote:

Originally Posted by Beejeebers

GST is not an income tax as was already stated. It's a "goods and services tax" paid when YOU purchase a good or service IN Canada.

You need to re-read whatever you have in front of you, because you're confused. You may owe INCOME tax of $30k, (plausible if you made more then $100k in a year). That said if I had a $30 k tax bill and didn't understand it, I would be seeking professional advice asap.

I rec'd a letter from rev canada saying basically "hey you have been making over $30k for the last few years so you shoudl be collecting gst - here is your number and here is the total you owe us for the last few years (plus interest and penalities) which is $30,000

09-09-2005, 02:04 PM

Just curious, how much of that $30K is interest, and how much is a penalty?

And yeah, you don't have to pay it on affiliate revenue from U.S. based companies.

gideongallery · 09-09-2005, 02:05 PM

Double check what warchild said regarding gst on consulting services, GST is taxable on services too, unlike (PST). There is an exception or rebate that for taxes not collected for US customers (due to the free trade required exception to taxes) but you have to fill out some messy paperwork to get.

Wasn't worth it for me, but with 30K bill it probably would be (assuming the loophole still exists)

09-09-2005, 02:26 PM

Here's some stuff to read over that might help you too:

http://www.cra-arc.gc.ca/E/pub/gm/4-...htm#P235_12992

WarChild · 09-09-2005, 02:29 PM

Quote:

Originally Posted by gideongallery

Double check what warchild said regarding gst on consulting services, GST is taxable on services too, unlike (PST). There is an exception or rebate that for taxes not collected for US customers (due to the free trade required exception to taxes) but you have to fill out some messy paperwork to get.

Ummm ....

Quote:

Originally Posted by WarChild

Consulting work, done for American companies should be GST exempt, I believe.

directfiesta · 09-09-2005, 02:37 PM

It is my understanding, after consulting a CA here, that the position of the Canadian Government towards electronic comnmerce is the following:

- all sales of services/ecomm done by a canadian corp on line are to be treated as being done INSIDE Canada, so taxable ...
Just like if a canadian store sells goods to an american visiting Vancouver ... It is up to the customer to claim back the gst when he exits the country.

Now, don't give me shit that it doesn't make sense ... I am just giving you the time of the day...

Memberships is the same thing.

The best you can do now:

- get a good accountant
- start looking for a good tax lawyer, that has connections
- try to play the " i didn't know" and hope they have sympathy.
- negotiate a reduce amount ....

http://www.cra-arc.gc.ca/tax/busines...st/menu-e.html

09-09-2005, 03:53 PM

Quote:

Originally Posted by directfiesta

It is my understanding, after consulting a CA here, that the position of the Canadian Government towards electronic comnmerce is the following:

- all sales of services/ecomm done by a canadian corp on line are to be treated as being done INSIDE Canada, so taxable ...

That would apply to running paysites or selling goods online, but does not apply to working as an affiliate for US companies.

directfiesta · 09-09-2005, 03:59 PM

Quote:

Originally Posted by evildick

That would apply to running paysites or selling goods online, but does not apply to working as an affiliate for US companies.

Selling goods is not taxable, because you actually ship out the merchandise .. I do this daily, and have shipping documentation to back it up. Believe me, they came to check when I claimed a reimbursement of near 25000.00 for the first year.

As an affiliate, you do not ship out anything, so there position is that the " sponsor" could have been in the country at the time of the transaction, so taxable . Doesn't make sense, but that is the way ( have it in a printed document of 100 pages plus.. don't feel tough like reading and posting this ).

Still, that person should get an accountant.

ronaldo · 09-09-2005, 03:59 PM

Some good info here...

http://www.gofuckyourself.com/showth...&highlight=gst

jojojo · 09-09-2005, 04:03 PM

Quote:

Originally Posted by directfiesta

It is my understanding, after consulting a CA here, that the position of the Canadian Government towards electronic comnmerce is the following:

- all sales of services/ecomm done by a canadian corp on line are to be treated as being done INSIDE Canada, so taxable ...
Just like if a canadian store sells goods to an american visiting Vancouver ... It is up to the customer to claim back the gst when he exits the country.

Now, don't give me shit that it doesn't make sense ... I am just giving you the time of the day...

Memberships is the same thing.

The best you can do now:

- get a good accountant
- start looking for a good tax lawyer, that has connections
- try to play the " i didn't know" and hope they have sympathy.
- negotiate a reduce amount ....

http://www.cra-arc.gc.ca/tax/busines...st/menu-e.html

wtf this contradicts what everyone else is saying...

"all sales of services/ecomm done by a canadian corp on line are to be treated as being done INSIDE Canada, so taxable ..."

But I am not making any sales... I'm being paid commissions by a US company that sold someone a service.

So basically payments from sponsors are for referrals and are the same as me invoicing people for consulting...

Wtf if this is the case then every canadian webmaster using us affiliates for the last few years could get dinged anytime with this same charge...

Sounds like I need a US/offshore corp and have them pay me a salary or something if this is how it is...

Hmmm if you file over 30k self employeed they look for gst automatically don't they? wtf #$%^

Quote:

Originally Posted by ronaldo

Some good info here...

http://www.gofuckyourself.com/showth...&highlight=gst

I read those already and now what direcfiesta is saying contradicts this...

is it really as simple as shwoing them that all my revenue came from US companies?

drama · 09-09-2005, 04:15 PM

Here is how it works.

If you sell an item to someone inside Canada then it is subject to GST. If the customer resides inside of your province then you must charge the provincial sales tax as well.

If the customer is outside of Canada they're not subjected to paying tax Canadian taxes.

If you want to fuck with them then technically you don't sell shit. It's the 3rd party processor who completes the sale outside of Canada and sends you the money. Now this leads back to your business collecting funds from a source outside of the country. No GST/PST, But you still need to declare the income.

jojojo · 09-09-2005, 04:20 PM

Quote:

Originally Posted by drama

Here is how it works.

If you sell an item to someone inside Canada then it is subject to GST. If the customer resides inside of your province then you must charge the provincial sales tax as well.

If the customer is outside of Canada they're not subjected to paying tax Canadian taxes.

If you want to fuck with them then technically you don't sell shit. It's the 3rd party processor who completes the sale outside of Canada and sends you the money. Now this leads back to your business collecting funds from a source outside of the country. No GST/PST, But you still need to declare the income.

Righto... the reason they are coming after me for all this money is because I HAVE declared the income...

So wtf do I do know? Just call them and say "hey its all income from usa companies for consulting and referrals" and then prove it?

If it is this black and white they should be like "ok we didnt know it was all from USA companies" ... they just assumed it and gave me a number and sent me a bill.

sonofsam · 09-09-2005, 04:23 PM

if you find a good accountant in vancouver, let me know also please

drama · 09-09-2005, 04:27 PM

Quote:

Originally Posted by jojojo

Righto... the reason they are coming after me for all this money is because I HAVE declared the income....

You _SHOULD_ declare it anyways. Always show what you make unless you're doing cash money jobs (not in this biz oviously). ANYONE who clears 30k/year and has a limited or incorperated business will get a GST number.

Quote:

Originally Posted by jojojo

So wtf do I do know? Just call them and say "hey its all income from usa companies for consulting and referrals" and then prove it?"

They're going to want proof. I would start requesting account reconciliations from anyone whos every paid you any $ and isnt canadian based. At this point $30k is a nice chunk of change and they wont drop it.

Quote:

Originally Posted by jojojo

If it is this black and white they should be like "ok we didnt know it was all from USA companies" ... they just assumed it and gave me a number and sent me a bill.

No, they think you owe them $30K ;) Its worth it to get yourself an accountant just to clear this issue up with them instead of you doing it and messing it up ;)

directfiesta · 09-09-2005, 04:35 PM

Quote:

Originally Posted by drama

Here is how it works.

If you sell an item to someone inside Canada then it is subject to GST. If the customer resides inside of your province then you must charge the provincial sales tax as well.

If the customer is outside of Canada they're not subjected to paying tax Canadian taxes.

If you want to fuck with them then technically you don't sell shit. It's the 3rd party processor who completes the sale outside of Canada and sends you the money. Now this leads back to your business collecting funds from a source outside of the country. No GST/PST, But you still need to declare the income.

Great advice ... I just need to remember not to follow this ....

drama · 09-09-2005, 04:49 PM

Quote:

Originally Posted by directfiesta

Great advice ... I just need to remember not to follow this ....

I have friends who move close to $1m in dvd products per year as well as some friends who probably do 50-100k/month in online dvd sales and they BOTH dont do it the way you do.

directfiesta · 09-09-2005, 04:55 PM

Quote:

Originally Posted by drama

I have friends who move close to $1m in dvd products per year as well as some friends who probably do 50-100k/month in online dvd sales and they BOTH dont do it the way you do.

Are you old enough to read ?????

Quote:

Selling goods is not taxable, because you actually ship out the merchandise .. I do this daily, and have shipping documentation to back it up. Believe me, they came to check when I claimed a reimbursement of near 25000.00 for the first year.

Sorry, they do it they way I do it, BECAUSE THIS IS HARDGOODS SALE.....

Obviously, you are not able to see the difference between HARDGOODS and services/memberships ...

Let me tell you that the taxman ( Ringo Starr preferred people ) will teach you ....

directfiesta · 09-09-2005, 04:57 PM

Quote:

Originally Posted by drama

I have friends who move close to $1m in dvd products per year as well as some friends who probably do 50-100k/month in online dvd sales and they BOTH dont do it the way you do.

$ 1.000.000.00 on line in Canada !!!!

I call : BULLSHIT!

drama · 09-09-2005, 05:02 PM

Quote:

Originally Posted by directfiesta

$ 1.000.000.00 on line in Canada !!!!

I call : BULLSHIT!

Call bullshit all you want. Assume all you want too because that is exactly what you're doing. I never said either one of my friends sold products just in Canada which is why I think I may know what I'm talking about.

The DVD retailer has does large in the UK as well as in the US. My other friends distribute product worldwide as well as own their own lines.

Amazing they're still in business according to you.

directfiesta · 09-09-2005, 05:06 PM

Quote:

Originally Posted by drama

Call bullshit all you want. Assume all you want too because that is exactly what you're doing. I never said either one of my friends sold products just in Canada which is why I think I may know what I'm talking about.

The DVD retailer has does large in the UK as well as in the US. My other friends distribute product worldwide as well as own their own lines.

Amazing they're still in business according to you.

You assume that I assume ... I didn't. I understood that you claim that he sells DVD"s for over 1.000.000.00 in the whole world on line... i still say BS.... I have been in this business linguer than you have lived .... Do you know of Mile-High, Showtime, Kaytel, Jade, etc .. They rtep the biggest US lines and don't do a tenth of that on line... Your friend is pulling your dick.

I sell DVD's ,VHS-NTSC and VHS-PAL worldwide ... You know what PAL is ??? it is not your friend....

And on the GST issue, you were wrong, and obviously are ignoring it .

yys · 09-09-2005, 05:38 PM

Quote:

Originally Posted by directfiesta

You assume that I assume ... I didn't. I understood that you claim that he sells DVD"s for over 1.000.000.00 in the whole world on line... i still say BS.... I have been in this business linguer than you have lived .... Do you know of Mile-High, Showtime, Kaytel, Jade, etc .. They rtep the biggest US lines and don't do a tenth of that on line... Your friend is pulling your dick.

I sell DVD's ,VHS-NTSC and VHS-PAL worldwide ... You know what PAL is ??? it is not your friend....

And on the GST issue, you were wrong, and obviously are ignoring it .

If you search the power sellers on ebay long enough you will find some that move 200-300k dvd's a year just through ebay.

directfiesta · 09-09-2005, 05:52 PM

Quote:

Originally Posted by yys

If you search the power sellers on ebay long enough you will find some that move 200-300k dvd's a year just through ebay.

CANADIANS ????? give examples... I listed above the 4 biggest adult distributor in the country ...
Showtime: Evil Angel, New Sensations, Ultimate pics, Kic Ass , Hot Box, Digital Sin, Shaynes world, etc ...
Kaytel : leisure time, Elegant Angel, Red Ligh District ...
milehigh : their own Dog House productions, Metro prods, 100 releases a month!
jade : devil's film, jet multimedia, temptations,filmco ...
Transvideo : bunch of lines

These guys, all together, dont do half that on line ...

Still waiting for names ??? or one name ???

Bestvideos.com

directfiesta · 09-09-2005, 05:52 PM

Quote:

Originally Posted by yys

If you search the power sellers on ebay long enough you will find some that move 200-300k dvd's a year just through ebay.

Adult ????

yys · 09-09-2005, 06:05 PM

Quote:

Originally Posted by directfiesta

Adult ????

I wasn't talking about adult. I'm not sure about the person who said they have a friend who moves a million in dvd's but I assumed they meant mainstream as well.

directfiesta · 09-09-2005, 06:10 PM

Quote:

Originally Posted by yys

I wasn't talking about adult. I'm not sure about the person who said they have a friend who moves a million in dvd's but I assumed they meant mainstream as well.

Maybe... We will never now... it's past nine, so his mommy sent him to bed

WarChild · 09-09-2005, 06:13 PM

My Accountant doesn't agree with Directfiesta's.

Paul Waters · 09-09-2005, 06:13 PM

Hehe,

I *am* an accountant, and in my real job I implement complex software and I make sure that the taxes work properly.

I am not in public practice.

I can tell you that income as an affiliate is very ambiguous. I am pretty sure CCRA has not written an opinion, and it has not been tested in court.

I would argue that you are a sales agent earning a commission from foreign sales.

That is not good. Because you are doing the work in Canada you have to charge your client GST. That means that if you make $25 you have to account for it as 23.36 of revenue and 1.64 of GST.

The web site can register for the gst and get the 1.64 back. If you are significant enough, they may be willing to do this and pay you 26.75. And get 1.75 back.

Since doing it properly, Rev Can gets nothing they may not push it if they are otherwise happy with you. That means paying your income taxes.

But who knows? There is no precedent.

ricks · 09-09-2005, 06:16 PM

Some of you are retarded, the answer to the original question is simple, NO, you do not have to submit GST on a payment that originates from the US.

directfiesta · 09-09-2005, 06:20 PM

Quote:

Originally Posted by WarChild

My Accountant doesn't agree with Directfiesta's.

Get a written opinion, backed by firm if he works for one. If not, ask him if he has liability insurrance ...

Otherwise, you will do like I did 10 years ago after my divorce:

- sit in a small cubicle office, with a lousy table a 4 chairs.
- In front, two fucking tax people that belive that you are scum and rich
- Besides you, your bankruptcy syndic...
- Practically on the table, but no quite yet, a 4999.00 bank draft in blank, that you make sure to flash around

When the proper time comes, you state:

" I have a problem here. This draft, which name I write on the line of the payee... Revenue Canada or my syndic "...

Paul, you are right, and the job of the taxman is to create and collect taxes, not to be fair to you ...

directfiesta · 09-09-2005, 06:20 PM

Quote:

Originally Posted by ricks

Some of you are retarded, the answer to the original question is simple, NO, you do not have to submit GST on a payment that originates from the US.

WarChild · 09-09-2005, 06:23 PM

Quote:

Originally Posted by directfiesta

Get a written opinion, backed by firm if he works for one. If not, ask him if he has liability insurrance ...

Otherwise, you will do like I did 10 years ago after my divorce:

- sit in a small cubicle office, with a lousy table a 4 chairs.
- In front, two fucking tax people that belive that you are scum and rich
- Besides you, your bankruptcy syndic...
- Practically on the table, but no quite yet, a 4999.00 bank draft in blank, that you make sure to flash around

When the proper time comes, you state:

" I have a problem here. This draft, which name I write on the line of the payee... Revenue Canada or my syndic "...

Paul, you are right, and the job of the taxman is to create and collect taxes, not to be fair to you ...

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

Paul Waters · 09-09-2005, 06:24 PM

Quote:

Originally Posted by ricks

Some of you are retarded, the answer to the original question is simple, NO, you do not have to submit GST on a payment that originates from the US.

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.

bigmacandcheese · 09-09-2005, 06:24 PM

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.

ricks · 09-09-2005, 06:30 PM

Quote:

Originally Posted by Paul Waters

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.

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.

Paul Waters · 09-09-2005, 06:35 PM

Quote:

Originally Posted by bigmacandcheese

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.

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

directfiesta · 09-09-2005, 06:36 PM

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, it's that simple, feel free to donate though anytime, they will cash your check.

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 ....

Paul Waters · 09-09-2005, 06:38 PM

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, it's that simple, feel free to donate though anytime, they will cash your check.

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.

jojojo · 09-09-2005, 06:40 PM

Quote:

Originally Posted by bigmacandcheese

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.

can u icq me please 333485092

WarChild · 09-09-2005, 06:47 PM

Quote:

Originally Posted by Paul Waters

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.

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.

directfiesta · 09-09-2005, 06:54 PM

Quote:

Originally Posted by WarChild

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.

Quote:

What qualifies for the refund?

There is NO REFUND of the tax paid on such items as: entertainment; meals; alcohol; tobacco products; services such as dry cleaning and hairdressing; air, train, and bus tickets; car rentals; automotive fuels; rentals of travel trailers and other recreational vehicles; cruise ship cabins; train berths; or timeshare arrangements. This is not an all-inclusive list.

In addition, any goods that you consume or leave in Canada do not qualify for this refund.
Eligible goods

You can claim a refund of the GST/HST paid on most goods you take home with you. Goods generally qualify for a refund if you meet the following conditions:

* you paid GST/HST on the goods;
* you bought the goods to use primarily outside Canada; and
* you removed the goods from Canada within 60 days of delivery to you (see the section entitled "Proof of export and stamping of your receipts").

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 " )

09-09-2005, 12:10 PM	#1
jojojo Too lazy to set a custom title Join Date: Mar 2002 Location: Vancouver, BC Posts: 2,318	Canadian webmasters pushing US affilates - do you have to pay GST? help.. 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 __________________ Learn SEO - make $$ residually - icq me 333485092

09-09-2005, 12:19 PM	#4
chowda Confirmed User Join Date: Jun 2003 Location: Gooch city Posts: 9,527	if its REPORTED revenue or income, then it has to be tax. technically govt states that u have to report revenue/income that u made globally. __________________ Someone finds you... 2007 PS: Nationalnet is the best host I've ever had. And i tried alot of them.

09-09-2005, 12:26 PM	#7
jojojo Too lazy to set a custom title Join Date: Mar 2002 Location: Vancouver, BC Posts: 2,318	so there is no canadian webmasters dealing with this??? wtf same as all the other threads... nobody that can actually say yes or no. __________________ Learn SEO - make $$ residually - icq me 333485092

09-09-2005, 12:36 PM	#9
Beejeebers Confirmed User Join Date: Oct 2004 Posts: 290	GST is not an income tax as was already stated. It's a "goods and services tax" paid when YOU purchase a good or service IN Canada. You need to re-read whatever you have in front of you, because you're confused. You may owe INCOME tax of $30k, (plausible if you made more then $100k in a year). That said if I had a $30 k tax bill and didn't understand it, I would be seeking professional advice asap. __________________

09-09-2005, 02:05 PM	#13
gideongallery Confirmed User Join Date: Aug 2003 Posts: 7,082	Double check what warchild said regarding gst on consulting services, GST is taxable on services too, unlike (PST). There is an exception or rebate that for taxes not collected for US customers (due to the free trade required exception to taxes) but you have to fill out some messy paperwork to get. Wasn't worth it for me, but with 30K bill it probably would be (assuming the loophole still exists) __________________ “When crimes occur through the mail, you don’t shut the post office down,” Steve Wozniak

09-09-2005, 12:16 PM	#2
GTS Mark Vrume Mark Industry Role: Join Date: Jan 2001 Location: Toronto, Canada Posts: 20,912	Call a good tax accountant local to you, they can assist you with this. DH

09-09-2005, 02:04 PM	#12
evildick Guest Posts: n/a	Just curious, how much of that $30K is interest, and how much is a penalty? And yeah, you don't have to pay it on affiliate revenue from U.S. based companies.

09-09-2005, 02:26 PM	#14
evildick Guest Posts: n/a	Here's some stuff to read over that might help you too: http://www.cra-arc.gc.ca/E/pub/gm/4-...htm#P235_12992

09-09-2005, 02:37 PM	#16
directfiesta Too lazy to set a custom title Industry Role: Join Date: Oct 2002 Location: Montreal, Quebec Posts: 29,675	It is my understanding, after consulting a CA here, that the position of the Canadian Government towards electronic comnmerce is the following: - all sales of services/ecomm done by a canadian corp on line are to be treated as being done INSIDE Canada, so taxable ... Just like if a canadian store sells goods to an american visiting Vancouver ... It is up to the customer to claim back the gst when he exits the country. Now, don't give me shit that it doesn't make sense ... I am just giving you the time of the day... Memberships is the same thing. The best you can do now: - get a good accountant - start looking for a good tax lawyer, that has connections - try to play the " i didn't know" and hope they have sympathy. - negotiate a reduce amount .... http://www.cra-arc.gc.ca/tax/busines...st/menu-e.html __________________ I know that Asspimple is stoopid ... As he says, it is a FACT ! But I can't figure out how he can breathe or type , at the same time ....

09-09-2005, 03:59 PM	#19
ronaldo Confirmed User Join Date: Jan 2002 Location: ICQ#: 272000271 Posts: 5,475	Some good info here... http://www.gofuckyourself.com/showth...&highlight=gst

09-09-2005, 04:15 PM	#21
drama Confirmed User Join Date: Jul 2004 Posts: 847	Here is how it works. If you sell an item to someone inside Canada then it is subject to GST. If the customer resides inside of your province then you must charge the provincial sales tax as well. If the customer is outside of Canada they're not subjected to paying tax Canadian taxes. If you want to fuck with them then technically you don't sell shit. It's the 3rd party processor who completes the sale outside of Canada and sends you the money. Now this leads back to your business collecting funds from a source outside of the country. No GST/PST, But you still need to declare the income.

09-09-2005, 04:23 PM	#23
sonofsam Too lazy to set a custom title Join Date: Dec 2004 Location: Vancouver Posts: 18,638	if you find a good accountant in vancouver, let me know also please __________________ I like turtles.

09-09-2005, 06:13 PM	#36
WarChild Let slip the dogs of war. Industry Role: Join Date: Jan 2003 Location: Bermuda Posts: 17,263	My Accountant doesn't agree with Directfiesta's. __________________ .

09-09-2005, 06:13 PM	#37
Paul Waters Confirmed User Join Date: Mar 2003 Location: Toronto, Ontario Posts: 4,402	Hehe, I am an accountant, and in my real job I implement complex software and I make sure that the taxes work properly. I am not in public practice. I can tell you that income as an affiliate is very ambiguous. I am pretty sure CCRA has not written an opinion, and it has not been tested in court. I would argue that you are a sales agent earning a commission from foreign sales. That is not good. Because you are doing the work in Canada you have to charge your client GST. That means that if you make $25 you have to account for it as 23.36 of revenue and 1.64 of GST. The web site can register for the gst and get the 1.64 back. If you are significant enough, they may be willing to do this and pay you 26.75. And get 1.75 back. Since doing it properly, Rev Can gets nothing they may not push it if they are otherwise happy with you. That means paying your income taxes. But who knows? There is no precedent. __________________ Paul

09-09-2005, 06:16 PM	#38
ricks Confirmed User Join Date: Oct 2004 Posts: 924	Some of you are retarded, the answer to the original question is simple, NO, you do not have to submit GST on a payment that originates from the US.

09-09-2005, 06:24 PM	#43
bigmacandcheese Confirmed User Industry Role: Join Date: May 2005 Posts: 180	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.