Canadian affiliates paying GST?
- Thread starter strikernr
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Hi strikernr,
If you are a Canadian company and you do more than $30K in business per year, you will need to charge GST to any other Canadian company you do business with.
But really, your best bet is to check with the CRA and review their guidelines and requirements.
If you are a Canadian company and you do more than $30K in business per year, you will need to charge GST to any other Canadian company you do business with.
But really, your best bet is to check with the CRA and review their guidelines and requirements.
Thanks so much for the advice. I just got the CRA number. Going to give them a call. Since I get paid in US (from US) and pay expenses in US and don't chrage GST to affiliate networks I dela with, I'm guessing I won't be paying GST. I just need somehow rephrase this to the CRA agent when I call 
Networks in the US you don't have to worry about but you should be charging GST to any networks with offices in Canada.
And the $30k thing...that's worldwide income, so even if you do $25k from the US and $10k from Canadian you'd still have to charge on the $10k.
The only question you need to ask yourself is: are you providing a service to a Canadian company? If the answer is yes then start collecting. (assuming you do $30k+ a year).
And the $30k thing...that's worldwide income, so even if you do $25k from the US and $10k from Canadian you'd still have to charge on the $10k.
The only question you need to ask yourself is: are you providing a service to a Canadian company? If the answer is yes then start collecting. (assuming you do $30k+ a year).
Interesting, because I thought if the advertiser is selling to Canadians, it is up to them to collect the GST (during payment) and not ours as affiliates.
If I were purchasing e.g. Acai pills from a website, when I enter in my credit card I would expect then to pay GST during the transaction. If GST is collected then, wouldn't it be redundant or double-collecting for us affiliates to do it too against the network?
If I were purchasing e.g. Acai pills from a website, when I enter in my credit card I would expect then to pay GST during the transaction. If GST is collected then, wouldn't it be redundant or double-collecting for us affiliates to do it too against the network?
Don't try to come up with excuses not to collect, been there done that. All you have to look at is the relationship between you and the network - which you are providing advertising/marketing services to. Networks don't sell acai berries, they're just the middle man, again offers have nothing to do with it. The networks are the ones that deal with the merchants.
There's no need to over-analyze this. Talk to your accountant but if you really want to hear it from the source attend one of these seminars and ask away: PST-GST/HST Seminar
All it really is is 1 form and you get the bonus of being able to write off GST on stuff you buy for your business which includes gst on utilities, etc.
There's no need to over-analyze this. Talk to your accountant but if you really want to hear it from the source attend one of these seminars and ask away: PST-GST/HST Seminar
All it really is is 1 form and you get the bonus of being able to write off GST on stuff you buy for your business which includes gst on utilities, etc.
Both parties would be collecting the GST in that case. You'd invoice us for the GST on all your earnings, regardless of whether the end merchant has offices. We invoice our Canadian merchants for GST on all leads to them, regardless of where the affiliate is located.
It's similar to you buying something from Canadian Tire. You pay them the GST on a box of nails. They paid their nail supplier GST on the overall shipment they received. The nail supplier pays GST to the steel company.
I didn't get time to call The CRA. I'm at work. But this is bit confusing thou. Because I know some US offers don't collect GST (even when charging Canadians). What about if you're doing leads. There is no merchandise being sold.
In my case I'm promoting a US offers to US traffic. They're lead based. I suppose when I am promoting offers in Canada, then I'm subjected to pay GST and should collect GST from networks in that case?
Why would a US advertiser be collecting GST for the Canadian government for?
How this damn GST works is when the network pays you GST, they are going to record it as GST rebate. The network can claim the GST back when they file tax return.
ie. Neverblue -> Affiliate -> Canadian Government -> Neverblue (GST rebate pay to affiliates minus GST collected from Canadian advertisers)
Most of the times, the affiliate will have to pay the full amount that he/she received from the network (Canadian) back to the government.
How this damn GST works is when the network pays you GST, they are going to record it as GST rebate. The network can claim the GST back when they file tax return.
ie. Neverblue -> Affiliate -> Canadian Government -> Neverblue (GST rebate pay to affiliates minus GST collected from Canadian advertisers)
Most of the times, the affiliate will have to pay the full amount that he/she received from the network (Canadian) back to the government.
Why would anyone in the US collect GST which is a Canadian tax? The GST only applies to Canadian businesses doing business with other Canadian businesses. (or selling to consumers)
There is nothing confusing about this.
You are a Canadian business. Neverblue is a Canadian business (or at least has offices here).
You provide advertising and marketing services to Neverblue by generating leads for them therefore you are required to collect GST from Neverblue and remit to the CRA. Stop adding leads and acai berries into the equation.
If you are dealing with a US company there is nothing you have to collect nor should they be collecting any GST from anyone. So if you ONLY deal with US companies forget the GST exists.
edit DirSP beat me to it
Does a used car salesman in Canada collect GST on his commission pay-check? No. The dealership collects it on the sale.
I'm receiving commission from these networks, I'm not providing a service. If I was, I'd be paid no matter what. I've never collected commission on my commission checks only on the design/marketing services I use to offer.
I've been through a books and records audit in Canada and came out on top because I do my books every month and work directly with a CA and book-keeper.
**Talk to your accountant. Make sure you have one that is familiar with Internet Commerce.
I'm receiving commission from these networks, I'm not providing a service. If I was, I'd be paid no matter what. I've never collected commission on my commission checks only on the design/marketing services I use to offer.
I've been through a books and records audit in Canada and came out on top because I do my books every month and work directly with a CA and book-keeper.
**Talk to your accountant. Make sure you have one that is familiar with Internet Commerce.
Woops... collected GST on my commission checks.
However, all of the networks I've worked with in the past have been US based. I just sent an email to my account, we'll see what he says.
So how have you Canadian affiliates been doing this then? You submit an invoice to the network for the GST after you've received your commissions?
lolz - hence why your 1st post didn't warrant a response because I highly doubt you would have passed the audit if you dealt with Canadian networks.
The car salesman example is a bad one - the salesman is actually employeed by the dealership - he is not a "business" that approached the dealership to offer his services of delivering leads/sales to the dealership. He gets his T4 at the end of the year and goes home.
No invoice needed (though I do make one just for myself). Give the network your GST # and they'll start sending you your commission + 5%.
My mistake for the used car example. You're complete right.
I'm quite interested in what my accountant will say. I've just started working with a Canadian company over the last 2 months. If I need to collect & pay GST, then I'd like to find out now and not 6 months from now.
Gawd, I had this shit.
I'm quite interested in what my accountant will say. I've just started working with a Canadian company over the last 2 months. If I need to collect & pay GST, then I'd like to find out now and not 6 months from now.
Gawd, I had this shit.
Personally, I insist on receiving invoices before I pay the GST to the Canadian companies that have run our campaigns. I've gone through CRA's standard GST audit twice now and both times I had to provide invoices to prove that I paid the GST for a legitimate reason.
This hasn't been much of an issue with any of my affiliates. Most affiliates doing that volume who've registered as a company almost always have some sort of accounting package.
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