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Do Internet Marketers Charge Tax?

by SeanyG
5 replies
Hey guys,

Just about to launch a product and a lot of the products I have been modeling after don't seem to charge taxes.

A great example of this is David Deangello's (Eben Pagan's) Double Your Dating courses...

The check out pages all say something along the lines of this:


• Advanced Dating Techniques DVD Plus Audio Program - $399.85 after FREE 30 day trial
• Interviews With Dating Gurus - No initial charge then $19.97 per month
• Interviews With Dating Gurus Bonus Starter CD - FREE

So is he incorperating tax into the price? Is he not charging tax because he doesn't need to based on the fact that he sells info products and its a 'grey area'?

What do most big IMers do? What do you do?

Thanks for your time,

~Sean
#charge #internet #marketers #tax
  • Profile picture of the author Elle Holder
    Hey Sean, you need to talk to an accountant there in BC, because--I'm assuming--that is where your business is headquartered. What IMers in other countries are doing is completely irrelevant to your situation.

    I can tell you that it's insanely confusing. I'm in Ontario and have read everything I could find from CRA about selling online, and I have tried to find a local accountant that understands the different laws when it comes to selling online and have had no luck. So I have stayed away from selling anything of my own until I have a clear picture of what to do.

    And of course, Ontario jumped on the HST bandwagon--I understand BC is too?--so that just complicates everything a bit more.

    Short answer, YES. You do need to charge tax. The difficult part is figuring out who you charge what to. And WHAT you are selling has a baring on whether you have to charge, and if so what to charge.

    I'll see if i can find links to the research I did a year or so ago and PM them to you, but remember, whatever they say is before the advent of HST happening here and in BC. That will just muddle things a little bit more.

    Maybe someone else in Canada, or preferably in BC, can offer you a more insightful answer!
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    • Profile picture of the author SeanyG
      Thanks so much for the detailed reply (even though it just amplified my frustration... because I have had a similar experience!)



      Originally Posted by ElleJ View Post

      Hey Sean, you need to talk to an accountant there in BC, because--I'm assuming--that is where your business is headquartered. What IMers in other countries are doing is completely irrelevant to your situation.

      I can tell you that it's insanely confusing. I'm in Ontario and have read everything I could find from CRA about selling online, and I have tried to find a local accountant that understands the different laws when it comes to selling online and have had no luck. So I have stayed away from selling anything of my own until I have a clear picture of what to do.

      And of course, Ontario jumped on the HST bandwagon--I understand BC is too?--so that just complicates everything a bit more.

      Short answer, YES. You do need to charge tax. The difficult part is figuring out who you charge what to. And WHAT you are selling has a baring on whether you have to charge, and if so what to charge.

      I'll see if i can find links to the research I did a year or so ago and PM them to you, but remember, whatever they say is before the advent of HST happening here and in BC. That will just muddle things a little bit more.

      Maybe someone else in Canada, or preferably in BC, can offer you a more insightful answer!
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  • Profile picture of the author jrianto
    I'm in Vancouver too! But I have no idea as well, I would be watching this thread for some inputs as well. Just moved here in Nov and am loving it!
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  • Profile picture of the author Tovuti
    I'm in BC too. I've been selling ebooks online for the past few years through Clickbank. I haven't worried about the taxes because Clickbank has been collecting and remitting taxes for me (in some areas -- although I haven't noticed them doing this for the GST in Canada). I realize that I probably should examine this further but I've run across just as much confusion when it comes to collecting taxes. So far it hasn't been a problem for me though.
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    • Profile picture of the author Elle Holder
      Hey, guys.

      I thought I would post the links here for you. Keep in mind, this info is a few years old, and still doesn't necessarily clear up whether we should be charge GST and/or PST or neither, but charge HST instead.

      Then we get the whole tangible/intangible/intellectual property issues thrown into the mix.

      And to some extent, the GST issue is moot, because as soon as your business makes more than C$30K in a year, you have to apply for a GST number and start charging/remitting it.

      So, here you go:
      Alas! In E-Commerce Taxland
      Are You Billing GST Correctly
      Charging GST/HST or PST on Electronic Transactions
      How to Taxes Apply to Your E-commerce Business in Canada

      So again, best advice: Try to find an accountant that understands e-commerce. Unfortunately, I've had no luck with that, but if any of you do, please pass the info on!
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