Why does CRA ask for GST on commission income?
By Jim Innes | January 1, 2012
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.