Canadians using Canadian Affilaite sponsers
 

My understanding is on all this new GST crap that if you use a US sponser you're ok, but if you use a Canadian affiliate sponser and you are a Canadian then you have to pay 7% GST on all income received from that Canadian affiliate sponser.

That puts concrerte blocks on any Canadian sponser trying to recruit any Canadian websites for their affilaite programs. Very very scarry stuff.

That is wrong.

You would have to CHARGE GST to your Canadian affiliate program.

It wouldn't change a thing for you, unless the affiliate program refuses to accept you business.

The affiliate program can claim GST back, so if they really want you business, they'll pay GST on your fees, and claim it back.

Yes It is Scary :feels-hot

but if it wasn't collected the alliliate is liable for it correct?

True.

If the affiliate is ordered to charge GST on its fees, and goes back to the affiliate program, it could become interesting.

You are providing the service of sending traffic to a sponsor program.

You are in some way INVOICING the sponsor program for your service, then you have to CHARGE GST to this sponsor program.

If you are the webmaster - you have to remit the GST you collected to the CCRA.

If you are the sponsor program - you can claim back the GST to the CCRA.

Hmmm does that mean any revenues generated for Platinum Bucks and Python must have GST collected?

DH

Gamma, python, and other CA affiliates I don't use anyway, so I'm ok.

I only stick to US companies because of that

If you're in Canada, yes.

If you are Canadian and registered for GST or making more than $30,000 per year from your Canadian sponsor(s).

The answer is : YES!

ahhh - this is good news - a little more paperwork but very very very good news.
It would only be a concern for affiliate making over $30k a year as less than that isn't subject to collect GST.

This is the SCARY PART:

Let's say that I generated $5,000 with Gamma this year. Because I am registered for GST - I do have to INVOICE THEM for GST (7%). Gamma, do have to pay me this 7% that I have to send to CCRA.

Gamma then claim back the GST they paid to the CCRA.

BUT!

CCRA wants to know more about that, and then investigate Gamma and they're fucked all the way if they never charged GST to their members.

CCRA might use this to enter in their books and audit them. :321GFY

Exactly.

And what if Gamma doesn't wanna pay your GST invoice? :)

that's where the concrete blocks come in. this new ruling pretty much makes it VERY difficult for canadian sponsers to use canadian affiliates the way I see it.

You're fucked in the ass like a sheep.

Unless they are willing to cooperate and pay GST, which I'm sure the big guys are.

the $30K a year revenue too isn't from one sponser, it's total revenue your business receives from all sourses I believe.

Exactly, but almost everyone in Canada who registered a DBA or incorporated already has a GST number. So they have to charge GST even if they generate under $30,000 per year.

I just called Gamma.

If you are a Canadian webmaster, you are supposed to invoice them for GST after you receive their payout.

They have been doing this for a long time.

See? The big Canadian players are willing to cooperate :)

Who's calling Platinum Bucks now?

That is VERY good news

That would be correct.

lets take this a step further - say I'm registered for GST but make under $30K a year - I don't have to submit it but can I still charge it and collect 7% extra from a large paysite? they will get refunded for it...........

My apologies to you Jay for mocking you in the other thread.

I didn't think any affiliate sponsor would pay that.

You are right. I am wrong.

No worries man :)

If you collect it - you have to remit it. Simple as that.

The $30,000 is a bit misleading. The law state that it is MANDATORY to be registered for GST if you generate over $30,000 in revenu per year. Even if you generate under $30,000 you CAN be registered as well but it is not mandatory.

But if you collect it, not matter what, you have to remit it.

Isnt this no different than US webmasters reporting what we make from US Sponsors?


Just curious, I dont know Canadian taxes and laws etc...

GST is a sales tax. You guys are not invoicing your sponsors for sales tax - right?

GST is a sales tax. (goods and service tax)

It's different than the tax on revenues.

Many of the larger companies have already gone off shore.

Platinum Bucks included

GST is a sales tax, not an income tax

Is it offshore too on your checks or it's from a Canadian company?

when did that happen?

If you guys are offshore, it means that I have to adjust my books and put a verifiable outside Canada address. If not, I can be in trouble because I don't charge you GST.

Don't you just love our thieving government. They'd fucking try to tax the air we breathe if they could; shit maybe there going to tax that too, koyoto.

I know that what I am about to say might sound wrong at some point but...

I am fucking tired to pay more tax than some people to have the same fucking service or LESS. I would vote anytime for someone who propose a FLAT TAX.

People on wealthfare pay like nothing in tax, they live for free and get free dental and shit like that.

I pay more tax, I don't get free dental, the government pisses me off because they audit me EVERY FUCKING YEAR and it cost me thousands in accountant and tax lawyer to defend myself.

amen

So they are trying to tax you a 'sales tax' on your sales?

Yikes.

I agree with that, flat tax is nice, Alberta's provincal income taxes are already flat tax. 10% for indivuals, 13% for companies (after your basic exemptions). I just wish someone would also do it on a federal level. Only party I know that has proposed it is the Canadian Alliance, and everyone knows they will never lead the country.
ZoiNk

Thanks god.

http://www.stopstockday.homestead.com/files/day5.jpg

Stockwell Day
:1orglaugh

Let's say you receive your weekly check from ARS of $3,000 - imagine that you would have to invoice ARS a sales tax of $275.

if i work for a company on commission and i'm an independant business, i don't have to charge them gst. why is it different for online companies?

You have to charge them GST if your revenues exceed $30,000 or you are registered for GST (you have a GST number). Whether it is online or offline, this is the same thing.

Since most Canadian affiliates have registered businesses in the USA for their Affiliate programs to comply with Visa Regulations.....it seems unlikely that you would technically be working with the Canadian portion of the business. As long as the cheques you are issued are drawn on the American Bank from the American portion of the business I imagine you'd be fine.

Anyone have anymore information on that pro or con?

i've thought for a while now that sales tax should be eliminated in canada and put that amount on revenue tax. they'd save money on collecting all this cash and its also a major hassle. does nothing more than hurt canadian businesses in a global economy.

It all depends on where is located the affiliate program. Where is located the company to who I am providing the service.

If I am providing the service to SEG in CarsonCity Nevada and the contract between me (webmaster) and SEG (affiliate program) is between me and a company in NV USA - I DO NOT have to charge GST.

If the contract was between me (webmaster) and SEG in Vancouver Canada - I would have to charge SEG Vancouver the GST on the revenues I generated.

If I subscribed to SEG and I received revenues while SEG was in Vancouver and not in NV USA - the revenues I generated while SEG was in Vancouver Canada are subject to GST.

--

Some Canadian companies do have another company in the USA that they use to pay their affiliates. Even if you receive a check from an offshore location or a foreign bank - it doensn't matter. Even if the Canadian affiliate program has a contract with another company in the USA to pay their affiliates.

The only thing that the law consider is where are located the 2 parties who signed the contract. (contract = terms of service).

Basically if you do business with another Canadian firm you have to 'charge' them GST. You don't actually charge them; but from a $10,000 monthly check, per say, you'd have to pay the CCRA $700 each month as total sales would be $9300

You are providing an Advertising (productive traffic = sales) service to a company. If the company ( they don't even have to BE BASED IN CANADA - if they are registered for a GST or with the CCRA, you have to pay gst), then you have to pay GST on all income earned.

However, if the company you are providing the services is a non-resident, non-registered business then you don't have to pay GST. This is from the point of view of the affiliate.

Exactly.

However, you don't have to take a 7% hit, it is the affiliate program's responsability to pay GST on your fees.

Gammacash already does it, and other will have to follow.

If the affiliate program your deal with tells you that they don't want your business if you charge them GST, you could then decide to take a 7% hit. It might be worth it :)

Well if they don't pay - you could always use the service of a collection agency. If they failed to collect the money, you can writte off this amount as a loss in your books.