Questions for Canadian webmasters
 

Because of all this 2257 noise and other worsening conditions in US of A, I am wondering if Canada is a better choice for adult webmasters.
1. Do Canadian webmasters have to pay any provincial or fedral sales tax on subscription sales? Like GST/PST etc.?
2. Is there any link that describes what laws govern publishing of porn in Canada ?
3. And finally are income tax levels higher in Canada as compared to US?
:helpme

you dont have to pay GST if your sales are from the US

yes to all.

Problem can come from proving to the gov't which sales are not Canadian.

I am surprised to know that you are supposed to pay sales tax...that is like 15% right?
how do you know which user is from Canada and which from Iceland? Thats sounds retarted.
are you serious that one has to pay sales tax on websites?

You must pay GST and PST on all sales you can forget GST if your gross is under 30 k a year, Lots of tax write offs for registered bizz in Ontario but if you fuck up you will pay and pay lots of penalties interest etc as for more info check a google on Federal Gov + Province of choice lots to see

I don't really know what taxes are. We only get paid for half a years work in Canada! :(

but first of all can someone clarify if you pay GST/PST for only those customers that joined from Canada or for everyone regardless of origin?

Hit me up.. We just sponsored a legal seminar for Canadian webmasters in adult not that long ago. I'd be happy to point you in the right direction for the information you're looking for. Icq me, 3522039.

Looks like not enough webmasters from Canada are here

no more Canucks on this board?
Whats up with other Canadian webmasters.....please share what you know guys

She's the one to talk too

Andrew
it will be nice to hear from other canucks who are in same boat and may have genuine suggestions and advice.

Has anyone summarized this info yet and posted it as a resource for CDN webmasters?

Thanks,
-Dino

to clarify PST Provincial sales tax rate is between 6 and 8 % depending on Province you are in GST Goods and services tax 7% across the board, however you may claim a rebate for all bizz related goods or services you buy that relate to the bizz . PST no rebate except 5% of what you have to send in if paid ontime (23 of each month) GST can be paid quarterly
hope this helps a bit

I'm new to the adult industry but I run several vanilla sites. Currently I am building my first adult site. All thanks to ghost posting and finding out about this site....

My question is why would you not want to comply with 2257 requirements?

It is not about not complying. I am curious abour rules and laws in place in canada for this business, if any.

JimmiDean Thanks for clarifications. Now I understand the breakdown of sales taxes but
1. Is this GST/PST applicable only if users joining the website are from Canada? In other words the ones from Iceland and mangolia ;-) are tax free users?
2. And how the hell is webmaster supposed to know which user is from which place?

3. And finally are income tax levels higher in Canada as compared to US?

YES.

stay in the US for this reason alone! go offshore if you can, there is no tax if you are registered in Gibraltar, for example.

Must pay PST/GST on all sales, even for users from Iceland... Sponsors payouts are a different animal. It was debated here a while back, you can use the search function to find out about this..

so if everyone has to pay 30+ % income tax, 15% sales tax, 16% Billing processing fee, 5-10% reserve then why the hell would one work anyways?

Decent health care for everyone?

Is there any Canadian webmaster here that has actually been paying GST/PST on users joining from other countires?

I guess that explains why I was suspicious. No webmaster can pay 15% sales tax while trying to be competitive

The video is being encoded and it will be available shortly :)

I should mention, if you are hosting in the US, billing through the US, or anything of the like, you will still be required to maintain 2257 records, even if you are a Canadian. It simple means you have to adhere to the laws of BOTH countries instead of just one. Canada is not a valhalla, it's got it's own rules and regulations, which in some cases are more stringent than even US law.

That's great news :thumbsup

All the best for the new year!

-Dino

A bit of advice for you. When considering how you are going to run your business, and how you are going to report income...the very last place you should go for advice is a board like GFY. The posters mean well, but their suggestions aren't going to hold much water when you are sitting in a chair, opposite a CCRA auditor.

My advice, go in to your local Canada Revenue Agency office. Sit down with one of the business agents. Explain your situation, and don't be shy. Believe me, you won't be the first nor the last to admit that you are in the "Online Porn" business. You would be surprised at how many tax returns are filed a year with occupations listed as "Prostitute", "Dominatrix" and so on.

They won't be able to give you specific accounting advice..but they can you give clear rulings on what is considered GST & PST taxable earnings. And that's advice you can depend on.

My father once made a very wise statement "You can make a great income with the right business. You can lose even more by trying to fool the tax man".

49TH Parallel
Your advice is indeed exactly the conclusion I reached upon.
I have talked to CCRA and found some details already which clearly conflict with most of above mentioned tips.
I think the best way is to write to them or visit them and explain in detail to get a clear picture.
There is a document available online at their site that explains lots of complex e commerce situations and their tax implications.

49th Parallel: Good post. I totally agree. Finding a good person to ask these questions and others that you have as you start your business will be invaluable. While there are a lot of very knowledgeable people on GFY, the ability to provide someone outside of the industry with a clear view of what your doing will probably save you a lot of money.

Start with LadyMischief's offer - I hear that the legal seminar she helped put together was really great. Also, while understated, Sarah - GSS knows exactly what she's talking about and if she has some time in her (very) busy schedule may be able to help you find the answers to your questions.

But really, while they may be a little difficult to find, a financial adviser with a little bit of knowledge of the industry or the willingness to learn will be able to give you a great deal of help now and in the future.