Canadian affiliates paying GST?

[m0rtal]

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.

You're right. I was just speaking from experience about the networks I have worked with. Not all of them request an invoice but you should still have one ready.

 

[Spliffic]

Good thread, I didn't realize I needed to collect from my Canadian networks.

So let's say I did $50K from US based networks and 1K from a Canadian network, should I collect the GST for that $1K?

 

[amanda11]

strikernr, how much did it cost to set up the corporation? (handing the paper to cityhall)

 

[m0rtal]

Good thread, I didn't realize I needed to collect from my Canadian networks.

So let's say I did $50K from US based networks and 1K from a Canadian network, should I collect the GST for that $1K?

Yes

strikernr, how much did it cost to set up the corporation? (handing the paper to cityhall)

I think you can do it yourself and it's like $200 somethin but it cost me about $500-$700 through my accountant can't remember exactly.

 

[Medici]

strikernr, how much did it cost to set up the corporation? (handing the paper to cityhall)

doing it yourself costs about $300 due to government fees. i went this route once when I was 18 and for my current corporation i got someone else to do it. total was just over $500 if i recall. it was pretty quick too.. like 3 business days and it was all setup.

 

[strikernr]

Well I stand completely corrected. My account just informed me that if the company is Canadian based, I do need to collect GST. My humble apologies.

Good thing I didn't start working with Canadian companies until this last quarter.

One correction WTF.

I called the CRA office and spoke to an agent. I told him I provide services online. The clients (networks) I deal with are US based but have offices in Canada (I promote with Azoogle, CXDigital and Neverblueads). He said, if the company (networks) have offices in Canada, then you need to collect GST from them, and pay it when I file my taxes.

strikernr, how much did it cost to set up the corporation? (handing the paper to cityhall)

I did it through my accountant. He charged $450 if I recall correctly.

 

[strikernr]

Good thread, I didn't realize I needed to collect from my Canadian networks.

So let's say I did $50K from US based networks and 1K from a Canadian network, should I collect the GST for that $1K?

You might want to make sure. From your sig. I see you're promoting with neverblueads also. Neverblue is located in Victoria, B.C Canada. If the company is located or offices in Canada you have to collect GST.

Let me give you guys the number of CRA GST Ruling office. I called them and they said I have to cllect GST. Can anyone call them, ask and see what they tell you?

The number is 1-800-959-8287.

 

[Spliffic]

strikernr: Thanks dude I've already contacted my NB AM and he said I simply need to provide my GST registration number and effective date of when I should be collecting GST. PITA but glad I found this out before I filed my taxes.

 

[strikernr]

Glad I could help. I wouldn't have known about this my account hadn't told me (I guess that's his responsibility to inform his clients). I don't have GST # yet. I'm going to apply for one now.

I contacted my AIM at neverblue. She hasn't gotten back.

 

[WTF]

I called the CRA office and spoke to an agent. I told him I provide services online. The clients (networks) I deal with are US based but have offices in Canada (I promote with Azoogle, CXDigital and Neverblueads). He said, if the company (networks) have offices in Canada, then you need to collect GST from them, and pay it when I file my taxes.

This doesn't make any sense to me. With Azoogle for example, my affiliate agreement is between my company and Epic Advertising head-quartered in New York. The agreement is in accordance with NY state & US law, not Canadian. I only deal with the NY office, never the Canadian one and all the offers I promote are to the USA or UK. So why would my Canadian entity charge GST to an international client? That doesn't make sense to me.

I'm going to get my accountant to look into this a little deeper. While I believe what you say, I'm not going to make a critical business decision based on here say from WickedFire.

I really appreciate you guys bringing this to my attention. Hopefully my accountant hasn't missed a huge hole with this Canadian office thing.

 

[strikernr]

Not a problem. This is as important to me as it to you. My accountant doesn't understand what I do, so I'm trying to find the answers to all this.

I understand Azoogle is a US company. But in the case of Neverblue and CXdigital (which are located in Canada), i don't know if this will apply.

Anyone what to clarify?

This doesn't make any sense to me. With Azoogle for example, my affiliate agreement is between my company and Epic Advertising head-quartered in New York. The agreement is in accordance with NY state & US law, not Canadian. I only deal with the NY office, never the Canadian one and all the offers I promote are to the USA or UK. So why would my Canadian entity charge GST to an international client? That doesn't make sense to me.

I'm going to get my accountant to look into this a little deeper. While I believe what you say, I'm not going to make a critical business decision based on here say from WickedFire.

I really appreciate you guys bringing this to my attention. Hopefully my accountant hasn't missed a huge hole with this Canadian office thing.

 

[zach606]

Damn, it's sounding like the (fairly expensive) advice I received from an accountant concerning GST might be wrong.

Here is some of what she told me:

I've spoken with the GST Rulings Department ... She confirmed my belief that your business is offering marketing services. Marketing services provided to non-Canadian companies are considered "exported services" and, as such, are not subject to GST. This means that you do not charge your US-based customers (the companies offering the affiliate programs) GST.

This conclusion is based on the following assumptions:
the companies offering the affiliate programs are US based and do not have a permanent establishment in Canada the affiliate network companies are acting as agents on behalf of the affiliate-program companies, for purposes of the GST.

Basically she believes that the marketing services I provide are for the advertisers, not the affiliate networks. So you would only need to charge GST if the affiliate program itself is Canadian.

 

[DirSP]

Damn, it's sounding like the (fairly expensive) advice I received from an accountant concerning GST might be wrong.

Here is some of what she told me:



Basically she believes that the marketing services I provide are for the advertisers, not the affiliate networks. So you would only need to charge GST if the affiliate program itself is Canadian.

I asked that when I was filing my corporate return with the accountant. Got any tax question, just ask them then and it is all for free.