In this lesson you will learn


  • What is Sales Tax and do you need to register for one?

  • How to register for a Sales Tax number (if applicable)

  • How to add your Sales Tax number on #paid

  • How to charge Sales Tax on #paid

What is Sales Tax?


Sales Tax refers to the collection of the Goods and Services tax (GST)/Harmonized Sales Tax (HST) on taxable supplies of property (goods) and services made in Canada. Sales tax only applies to Canadian creators who own or operate a business in Canada.

When to register for and start charging the GST/HST


Generally, if you provide taxable property and services in Canada and your total taxable revenues exceed $30,000 in any single calendar quarter (3 months) or in four consecutive calendar quarters, you will have to register for the GST/HST.

More details on how to register on the Canada Revenue Agency’s website.

If you do not exceed the $30,000 threshold over four consecutive calendar quarters, then you are considered a small supplier and do not have to register for the GST/HST. Learn more

How to add your Sales Tax number on #paid


To indicate that you are collecting sales tax (GST/HST), log into #paid and click Account Settings (top-right) followed by Settings.

Under "Sales Tax (for Canadian Creators)," click the checkbox to indicate that you collect sales tax and input your sales tax number.

The sales tax number (also called a Business Number) is part of the 15-character program account number assigned to your business by the Canada Revenue Agency (CRA). An account number would look like this: 123456789 RT0001

Once you've added your sales tax number, click "Save" and you're done! ✅

Charging for GST/HST in #paid collaborations


For Canadian creators collecting sales tax, please remember to factor GST/HST in your rates before opting in or accepting work. GST/HST is not applied automatically on #paid when indicating that you collect sales tax.

The rate of tax to charge for taxable supplies of property (goods) and services made in Canada depends on the province or territory. The current rates are...

GST/HST

Provinces and Territories

5% (GST)

Alberta, British Columbia, Manitoba, Northwest Territories, Nunavut, Quebec, Saskatchewan, and Yukon

13% (HST)

Ontario

15% (HST)

New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island

For example, if you are a Canadian creator living in Ontario and you normally charge $500 for an Instagram photo, with HST (13%), your Instagram Photo rate is $565 (13 percent of $500 is $65).


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