I sell in American Currency with Paypal, but I'm Canadian...?

Question

I have a few online games, and sell stuff on the games for $$$ in USD. This is my own personal small business (trying to be), and I'm canadian. So I'm wondering what do I tax? Like do I tax each item I sell on the game, or just tax the amount that gets withdrawled into my account.

Do I even need to start a business? I'm very lost, been developing games since I was a kid, and now im 21 and don't understand taxes, last month I made over $15,500.

Answer 1

Congrads for the money. This must be indicated upon your personal income tax. Any expenses for this business (stamps, envelop, portion of your house used for business, storage, computer deduction, etc...). If so, they are potentially tax deductibles. Potentially? Yes. The first following link will help you for starters but give them a call. It is also a LOT easier to go to the local branch of Revenue Canada (or if in Québec, equally a branch of Revenue Québec) and they WILL give you the correct information as you don't supply us with much info. The addresses are provided upon my second link.

For starters, are your games sold within Canada? If so, GST & PST may apply. On what? It depends upon what you sell.

You have to register for GST/HST in the following cases:
* if you provide taxable, including zero-rated goods or services in Canada in the course of carrying on business in Canada and your revenues exceed $30,000 ($50,000 for public service bodies) in a single calendar quarter or in four consecutive calendar quarters;
* you make taxable sales of admissions in Canada for a place of amusement, a seminar, an activity, or an event held in Canada, even if your sales do not exceed $30,000;
* you host a convention in Canada, and more than 25% of the delegates are residents of Canada; or
* you solicit orders for publications to be delivered to customers by mail or courier in Canada

CALL THEM first, they WILL give the info. Otherwise, the taxman may cometh.

Answer 2

Hi there,

the best way to ensure you aren't making any mistakes and risk ending up with a massive tax bill - just phone your local tax office and ask for an appointment.

They will go through it all with you (they do in uk anyway) They are really helpful and appreciate the fact that you want to keep your records straight.

Congrats on your last month's takings :) not bad eh!

Answer 3

I have short but simple answers for you.

You are not required to file GST unless you know you will make over 30k a year. Since you've made over 15 in just 1 month i'd register for GST BUT you are only to charge GST to Canadian resident.

PST is only applicable to the province of your residence. So if you're in BC you may not charge anyone living outside.

Call 1-800-959-5525 to register for GST and 1-877-388-4440 for PST

Keep all receipts related to your biz. Congrats.

Answer 4

properly, for one component, the CBC has been held up as being as biased as FOX information. Canadians are often fed unfavorable information memories concerning to the U. S.... and a few pick to have self belief it. they can't look to compliment their own united states of america devoid of denigrating the U. S. for some reason. We alway come as much as be in comparison unfavourably. Its rather gruesome behaviour, short sighted and impolite. replace "black" or "jewish" for "American" contained in the countless issues human beings say and you will possibly be able to work out the bigotry for sure. that's no longer something they must be happy with. each united states of america has its under stellar human beings - Justin Bieber is Canadian and he would not comprehend what German is. Does that propose all Canadians are dumb? human beings humorous tale around approximately Canada, yet there is not any animosity on our section. Its a one sided bigotry. Why they are happy with being bigots...? i do no longer comprehend. Who precisely are the rednecks right here? President John F Kennedy reported of Canada: “Geography has made us pals. historic past has made us buddies. Economics has made us companions. And necessity has made us allies. those whom nature hath so joined jointly, enable no guy positioned asunder. What unites us is plenty extra suitable than what divides us.” @finnigan - I used to artwork contained in the provider industry in NYC years in the past and that i've got the comparable impolite vacationer memories approximately Canadians. (and different nationalities) vacationers are no longer probable reflective of a nationality i discover. the place I stay now, I even have Canadian buddies that have instructed me that they embarrassedly further to the top while their Canadian family shorts the waitstaff. It comes all the way down to the guy extremely. some act as though they might do in spite of they like considering they are purely staying a little while; assume to be taken care of as royalty - and a few behave with manners as a customer. in accordance to Reuters, human beings are the 2nd maximum suitable rated vacationer group, after the eastern. The British even have been constantly the worst approximately tipping, in my journey, and the French have been the rudest and maximum annoying (and left the biggest mess). We used to hate waiting on particular nationalities. yet I carry vacationers as break away familiar human beings :)

Answer 5

Way to go !!

Unfortunately, you are required to pay income tax on this money.
You have to report the total of your earnings and deduct all of your business related expenses..ie. writeoffs.
If you have any US dollar transactions, you can convert them individually at the rate received, or lump them together and use CRA's average US rate, around 1.1343 this year.

Answer 6

Good for you. Do what you like and works.