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Microstock Photography Forum - General => Selling Stock Direct => Topic started by: AYA on February 07, 2017, 09:08

Title: selling direct and sales tax
Post by: AYA on February 07, 2017, 09:08

Hi Everyone,
I was wondering how sales tax work when you are selling your images on your own site. I am in Canada but when selling through agencies, I don't have to deal with sales taxes but I was wondering if it's the same with a direct site. On Photoshelter you have to fill in the W-8 BEN form but does this keep you from having to charge sales tax or just to have income tax taken off you royalties.

Hope someone has an idea!!

Thanks!

Title: Re: selling direct and sales tax
Post by: niktol on February 07, 2017, 11:10

Briefly: if your gross exceeds a small supplier level (30 K/year if I remember correctly), you will have to register for the GST/HST (or QST if in Quebec) program. All the sales made to Canadians (Canadian IP addresses) will have to carry the sales tax that you will collect from the customers on behalf of the federal/provincial revenue agencies. Then you gotta give it back to them or they will be very unhappy.

Disclaimer: I am not an accountant and that's how I understand it. You can talk to a tax expert about your specific situation.

Title: Re: selling direct and sales tax
Post by: ShadySue on February 07, 2017, 11:38

And then there's VAT for EU countries, a total nightmare:
http://tradecommissioner.gc.ca/european-union-europeenne/market-facts-faits-sur-le-marche/0000256.aspx?lang=eng (http://tradecommissioner.gc.ca/european-union-europeenne/market-facts-faits-sur-le-marche/0000256.aspx?lang=eng)
Mainly section 2.3 and follow the link in that section for more info.

Title: Re: selling direct and sales tax
Post by: Artist on February 07, 2017, 11:51

Want to know how does the tax system work in your country?
Your business tax and the personal income tax?