GST / HST Return Reporting Help ( Canada )

[gdguide]

Hi,

I have a Canadian Internet business as a sole proprietor. But my money comes from US based commission. I get a commission by providing free information to almost entirely US citizens.

With that in mind, I recieved my first GST / HST Reporting Return form, and now need to fill it out. Considering I don't actually sell anything, I;ve been told that my GST / HST amount is 0%. On this return, I also have no tax credit possibilities because I didn't buy any of my business supplies/services in Canada.

So basically, what do I need to fill out on this form? Is everything I fill out all 0's except for how much I earned in the reporting period?

Thanks for any help on this.I'm really even clueless why I even needed to register for the GST / HST if I don't sell anything.

Thanks

Brian

[Carson]

Hi,

I have a Canadian Internet business as a sole proprietor. But my money comes from US based commission. I get a commission by providing free information to almost entirely US citizens.

With that in mind, I recieved my first GST / HST Reporting Return form, and now need to fill it out. Considering I don't actually sell anything, I;ve been told that my GST / HST amount is 0%. On this return, I also have no tax credit possibilities because I didn't buy any of my business supplies/services in Canada.

So basically, what do I need to fill out on this form? Is everything I fill out all 0's except for how much I earned in the reporting period?

Thanks for any help on this.I'm really even clueless why I even needed to register for the GST / HST if I don't sell anything.

Thanks

Brian

I think box 101 still has to have your total sales in the period. Check the instructions.

You are selling something: your advice. But this is likely "zero rated" because you are not selling to Canadian residents. Now, there are cases where you should be charging GST/HST to non-residents. One case is where the advice you provide is related to real property in Canada.

GST rules are complicated and often counter-intuitive. They are not similar to income tax rules! GST is an entire tax speciality itself.

Generally speaking, you are requried to be registered when your worldwide sales/revenues are greater than $30,000. Also, do you really have no GST credits? No business expenses in Canada at all?

CRH

[gdguide]

Hey, thanks for the reply.

My reporting period is a short one because I registered this December. My reporting period is Dec 15th, 2005 to December 31st, 2005.

During that time, I didn't have any expenses at all that I claimed where I had to pay GST. My business expenses are webspace in the US, and other Internet related services that don't charge any gst whatsoever.

I agree that I need to enter in line 101 what I made during this time, but the rest should be zeros if I both have a zero rated business, and I didn't have any business expenses where I had to pay GST. Is this correct?

I work with some US companies that promote schools in the US. Any time someone requests information on any of these schools on my website (which is free), I get a commission.

Thanks for your help in this.

Brian

[Carson]

Hey, thanks for the reply.

My reporting period is a short one because I registered this December. My reporting period is Dec 15th, 2005 to December 31st, 2005.

During that time, I didn't have any expenses at all that I claimed where I had to pay GST. My business expenses are webspace in the US, and other Internet related services that don't charge any gst whatsoever.

I agree that I need to enter in line 101 what I made during this time, but the rest should be zeros if I both have a zero rated business, and I didn't have any business expenses where I had to pay GST. Is this correct?

I work with some US companies that promote schools in the US. Any time someone requests information on any of these schools on my website (which is free), I get a commission.

Thanks for your help in this.

Brian

Sounds right to me.