Technical Illustrators.org Forum

Hi All,

Coming from Canada, tax time is just around the corner and will be here before we know it (they have started to play commercials for tax help). Can anyone suggest links for info on sales tax and income tax for freelancers as it applies to Canada? I am not sure if I should be collecting sales tax and at what percent for any jobs I do. If it is anything like the GST/HST we have in Ontario, you only start collecting after you have billed a certain amount ($30,000+). Until then you are considered a "small supplier" and do not collect the tax on behalf of the gov't.

LyleMills wrote:Hi All,

Coming from Canada, tax time is just around the corner and will be here before we know it (they have started to play commercials for tax help). Can anyone suggest links for info on sales tax and income tax for freelancers as it applies to Canada? I am not sure if I should be collecting sales tax and at what percent for any jobs I do. If it is anything like the GST/HST we have in Ontario, you only start collecting after you have billed a certain amount ($30,000+). Until then you are considered a "small supplier" and do not collect the tax on behalf of the gov't.

When I got started I contacted the provincial tax people (SK) to discuss my situation. They considered my CAD, graphics and illustration work as consulting and PST did not apply. They considered the on-line tutorials that I sell as as taxable items (PST). They sent me a letter to keep on file outlining this in case there was ever any question about it. As for GST, I started collecting this when I hit the magic number and so collect that tax on both 'consulting' and tutorial sales.

It would probably be best to contact your provincial tax people and get it straight from the horse mouth, as the saying goes - and get it in writing so you have a record.

Thanks Don. Yes, I guess it would be a good idea to speak to the "horse" and get it in writing. Interesting how one thing is considered consulting and the other is a product.

Ugh... harmonized sales tax (HST) has made this so painful...

With GST it used to be a clean 5%, no matter what province you were in, or what province the client was in. Now I think you're supposed to collect the HST rate of the client's province if they're an HST-participating province, and another rate (5% maybe?) if they're not? Not exactly "harmonized"...

Anyway, here's where to get the facts: http://www.cra-arc.gc.ca/gsthst/