Do I have to charge sales tax on my songs?

BY Allison OuthitPublished Jul 24, 2011

My name is Greg Janssen (www.listentogregjanssen.com). In addition to selling MP3s of my songs on iTunes and other download services, I also want to sell them on my own website (using Paypal and a Wordpress shopping cart app). Do I have to charge people sales tax on these (and then remit this tax to the government)? If so, do I have to tax people at different rates according to their location? If so, it could get pretty complicated and may be more trouble than it's worth, but I see other people doing it so it must be doable.

Greg


Selling music is, believe it or not, a business, and so the same sales tax rules that apply to any retail business would apply to yours, meaning that you should register as a business and get yourself a GST and a PST (provincial sales tax) number or, depending where you live, one HST number. and start charging and remitting your sales tax to the guv'ment. That said, the general rule is that if you are earning gross revenues of less than $30,000 per year from your business, then you may not be required by the Canada Revenue Agency to register. Sales tax and small business info is available on the Canada Revenue Agency site (www.cra-arc.gc.ca) and your provincial government portal is probably a good source too.

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