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Why does CRA ask for GST on commission income?

By Jim Innes |

Joe asked:

I run a am a independent multilevel marketer. My parent company collects GST for any product that is purchased by members in my downline. My question is; Why is the CRA asking me to pay GST on my commission income?

Jim Innes answered:

It appears that your reader is self employed. If his sales are greater than $ 30,000 per year and he is selling a taxable product he will be required to charge and remit GST/HST. He should consider going on the quick method. This will mean he collects the full amount of the tax buy get to remit a smaller amount.

He should ask his employer for advice on the need for registration, it is unlikely that he is the only salesman with this problem.

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