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Canadians: GST Tax and Affiliate Income?

Discussion in 'Affiliate Programs' started by psynaut, Feb 18, 2008.

  1. #1
    Just wondering how you fellow Canadians handle GST when it comes to Income made from Affiliate networks that have offices in Canada (like Azoogle and Neverblue).

    I’m getting mixed information from different accountants on whether GST even applies to Affiliate marketing. The general answers I get from other affiliates I’ve talked to is that they just collect and submit GST, just to be on the safe side.
    SEMrush
    :confused::confused::confused::confused:
     
    psynaut, Feb 18, 2008 IP
    SEMrush
  2. nextgen66

    nextgen66 Well-Known Member

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    #2
    I don't pay GST from affiliate sales. They are all american companies and the money comes from american customers (sales made in the US) so GST isn't payable.
     
    nextgen66, Feb 19, 2008 IP
  3. laughingeyes

    laughingeyes Active Member

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    #3
    As far as I know, one wouldn't pay GST in this situation.
     
    laughingeyes, Feb 19, 2008 IP
  4. Steven Sauve

    Steven Sauve Guest

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    #4
    If you are doing more than $30K per year in sales and have registered as either a sole prioprietorship, partnership or corporation for income tax purposes, you need to register for a GST account and pay the GST. However, you would only need to collect and pay the GST on the earnings you make from Canadian companies (such as MaxBounty).

    To collect the GST from a Canadian company, you would need to send them an invoice that showed your commissions, the additional GST amount and your GST number. Although some smaller companies might balk at paying you, they are legally obligated to do so.

    If you are unsure, it is better to be safe than sorry. Collecting and remitting the GST costs you nothing, other than the time it takes to manage the paperwork.
     
    Steven Sauve, Feb 19, 2008 IP
  5. jiffy_man

    jiffy_man Peon

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    #5
    I used to do online business and never charged taxes to my American clients, since they reside in a different country. They're not obligated to pay Canadian taxes. I would presume the same thing with American Affiliates.
     
    jiffy_man, Feb 29, 2008 IP
  6. FanAddict

    FanAddict Notable Member

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    #6

    So your saying any money made from an american company to you - you don't pay taxes on it? Iv never heard that before....

    Ie: adsense, CJ, CB.
     
    FanAddict, Feb 29, 2008 IP
  7. zk5182

    zk5182 Active Member

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    #7
    What about GST / PST from clickbank , if I am over $ 30,000 ...do i have to pay or does clickbank charge it from the user during the payment
     
    zk5182, Sep 30, 2008 IP
  8. psynaut

    psynaut Peon

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    #8
    Just so everyone knows, I have talked to multiple accountants on this.
    IF the affiliate network has any offices in Canada ... like Azoogle or Neverblue ... you have to charge them GST on any payment you received from them.
    Clickbank should be fine as I don’t think they have any offices in Canada
     
    psynaut, Sep 30, 2008 IP
  9. NeilT

    NeilT Peon

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    #9
    If you are an affiliate marketer in Canada and do more then $30,000 in revenue per year you are required to pay GST on the revenues you make from any Canadian affiliate network. You may also be required to pay it on revenues earned through some US networks who do business in Canada and have signed up for a GST number.

    Don't worry, If you are prepared this is not bad news! The affiliate networks will pay you the 5% GST so long as you are registered and provide them with your GST number. So If you think you will be doing more then $30,000 in revenues and you live in Canada remember to collect and to register for your GST number.

    Here is a list of networks I use and know I must collect GST from, if you know of any others feel free to mention them.

    Canadian networks:
    CX Digital
    Neverblue

    USA Network Registered for GST:
    Azoogle
     
    NeilT, Sep 30, 2008 IP
  10. zk5182

    zk5182 Active Member

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    #10
    Thanks guys this is great information for a canadian affiliate looking for answers....I do a lot of business with clickbank , i was wondering if I need to pay any GST on my affiliate sales from Canadian buyers. Are there any other taxes we are required to pay
     
    zk5182, Oct 2, 2008 IP