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Gst is only if you are selling goods/services to Canadians. I have a ‘real’ company that sells goods to bookstores and libraries. If I sell to USA I don’t collect GST. If I collect less gst then I brought IN then I get the difference back in regards to the GSt I spent on the business (products, printing, ect)
Hi Shotgun Pete. Thanks for your reply.
It turns out commission income from non-Canadian or non-registered affiliate programs is considered online advertising revenue and is therefore zero-rated. You still have to be registered for GST if you earn more than $30k (that’s per year, not per month) but you don’t charge GST unless they are GST registered which *I think* normally means that they have some kind of Canadian presence – even if its just a sales or service office.
I wouldn’t expect any casino, bingo or poker sites to be GST registered – but with other affiliate programs it’s worth double checking.
It is not necessary to get a ruling if your income is entirely from affiliate programs and advertising – but you do need to register and report.
I have never billed anyone in Canada and therefore never collected GST, but get the GST i pay refunded every quarter.
The first time we submitted the claim, for hundreds of dollars, i received a phone call from the GST lady asking how this could be. What followed was a 20 minute conversation about what our business did – advertising of course. She then sat down with her IT rep and went thru my sites trying to “understand”. After a 2nd 90 minute Q&A about my business, the check was sent and no issues since.
