Last week I talked about Canadian taxes and shared what you need to know – if you haven’t read it – be sure to swing by.
This week I’m talking about value added tax (VAT) by way of Goods & Services Tax (GST), Harmonized Sales Tax (HST). Depending on where you live in Canada, there are also rules regarding Provincial Sales Tax (PST) but those will vary province-to-province.
Income taxes and VAT are not the same thing.
Income taxes are taxes paid to the government based upon what you earn.
Value added taxes are charged by a business to the end user of a product.
Based upon our talk last week, you now know you must include any and all income received from you blog on your personal tax return, the next question becomes, what about GST/HST/PST? Should I charge that?
The answer is: It depends.
Do you make less than $30,000 per year from your blog?
If so, you are not required to register for a GST/HST number.
If you make more than $30,000 per year from your blog you are required to register for a GST/HST number.
Even if you make less than $30,000 per year from your blog, you can still voluntarily register for a number.
GST/HST number pros
- able to net GST/HST paid and GST/HST charged which might result in a rebate back to you
GST/HST number cons
- You must retain all receipts for any GST/HST paid in order to claim it
- You must have a way of track GST/HST paid and GST/HST charged
- Requirement to file, at minimum, annually with the government – fines are levied for late filings
My personal recommendation is to not register for GST/HST if you’re not required to do so.
Registering has very little benefit to you, and will definitely create more work for you in the end.Are you a blogger wondering about GST or HST? Ange has answers for you!Click To Tweet
Do you have any questions about GST/HST for me?
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