10-27-2002, 03:46 AM
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Confirmed User
Industry Role:
Join Date: May 2002
Location: Toronto, Canada
Posts: 5,599
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Quote:
Originally posted by m0rph3us
Had a very interesting discussing with a friend last night about the Canadian 7% Goods and Services tax. Normally if you sell goods or provide services you have to charge all people/businesses in Canada that you serve this 7% tax(can be included in price). Sorta like the VAT in Europe.
Now for anyone that is in Canada and processes/used to process with a cross-border biller (ie IBILL, CCBILL, EURODEBIT etc..), we could say that we are doing a 'service' to the biller sending them customers (they own them, they cancel them, they have the CC info, we provide access to IBILL clients to our adult sites) and we get 85-89% of revenue. Since IBILL is outside Canada and income comes from them, there would be 0% GST charged.
Some people may say 'but they are our customers', in which case, would we have to print out a list of all transactions and note down the canadian ones and pay to the gov 7% for them revenue incurred from those transactions?
Which brings me to my next point.. what about Canadians using ProBilling ? They will get a checks/wires from ProBilling each month from their Canadian banks and since they are a Canadian business and you are a Canadian business, YOU must collect GST for the amount you are receving. This means a 7% increase in our income tax.
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You're completely right. When a canadian company pays you VS. an american(offshore) you have to claim it ;( |
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