What are the rules around collecting taxes?
The rules depend on where your end-user are located and whether that particular province charges tax on digital goods. There's some jargon around this when it comes to each Province so it's best to Google search something like "[Your Province] tax laws on digital goods". Of course, a tax professional will be your best source of information on this.
NOTE: These are very general recommendations. We're not tax professionals here and we can't be responsible for any losses or tax liabilities due to actions taken (or not taken) based on these recommendations. Again, always consult a tax professional when planning how to manage collecting taxes.
If you're worried about collecting VAT, this is based on the location of the end-user, so we do have some handy guides on VAT as well.
At this time, we recommend that if you wish to collect CA based taxes, do the following:
1. Increase your prices to account for average sales tax, which range between 5% & 15%. A full schedule of rates can be found on the CRA website.
2. Use only Stripe to collect payment on Uscreen. Stripe allows you to export your payments to include the postal code of the transaction. Using this information, you can determine what amount of tax you owe to which province. Navigate to your Payments, then click on Export. Select Custom under the Columns option. Then enable Card Address Zip. Finally, click on Export. Filter your zip column to sort by Postal code and match it to its respective province. Please note, that this information is not available for Paypal transactions. If you require postal code data per Paypal transaction, do not use the Paypal option.
If you'd like to see a specific tax-based integration with Uscreen, please submit a feature request.
Are video-based businesses always taxable?
The Canadian Revenue Agency, defines video-based businesses like those hosted on Uscreen, as suppliers of Intangible Personal Property. A more in-depth definition of IPP and GST/HST rules can be found on their website.
So how much do I actually owe?
If you've discovered you need to collect GST/HST we recommend building it into the price you charge on your storefront. Uscreen doesn't add taxes to purchased products. Buyers are always charged the amount that you set so taxes will need to be netted out of that total price.
If you set say a subscription at $10, your buyers will always pay $10, and you receive around $9.41 after Stripe fees for every sale. In a province with a 10% tax rate, you should set aside $1 to later remit, which would leave you with $7.41.
If you're using PayPal or Uscreen Payments Gateway we will hold all funds for 30 days and then payout on the 1st of the following month. If you are using Stripe, you are automatically sent this money whenever you choose to do a Payout. At the end of the year (or more frequently depending on your tax professional's advice), you should remit the money that was collected as sales tax to your provincial/national filing office. The CRA provides an exhaustive guide on GST/HST, including how to determine if you should be collecting taxes, how to fill out tax forms and remit payment.