9 Replies Latest reply: Feb 27, 2009 11:16 AM by alexcurylo
aapl.crox Level 1 Level 1 (0 points)
I remember signing a contract with Apple setting up the relationship with them such that they are the agent and I'm the principle in terms of collecting GST. Do I have to register for a GST number? Will they submit GST on my behalf what exactly do I have to do?
  • 1. Re: Anyone here from Canada, how does GST work?
    Drexus Level 1 Level 1 (90 points)
    It's a tricky question to answer if you don't want to register for a GST #.

    If you are the sole proprietor of any sort of business, then you will have a business number that is very similar to your GST # (with a small change at the end).

    That said, I would suggest that you get one. You can have multiple companies running at home under your control through one business number. To the government, it's all the same, they just want a current list of company name(s) associated with the business number.

    From there you have to fill out your own company taxes in addition to your personal taxes every year. However, the GST people will want a quarterly deposit (based on projected sales - or on last years sales history).

    In this model, yes. You will have to file your income yourself. Apple does not hold your hand in that regard. Be smart about it. I would bet Apple shares records with CRA.
  • 2. Re: Anyone here from Canada, how does GST work?
    aapl.crox Level 1 Level 1 (0 points)
    Drexus: Thanks for the explanation. But I'm still confused. Let's just suppose this is for a corporation (just to keep it simple for now). Apple seems to collect taxes for you (so for example, a 2.99 app is charged 3.38). My question is what happens to that amount 39C? Do apple submit it to gov? If so, what do we have to do in this process? If not, are they included in our monthly payment? And if so what do we do?

    Thanks
  • 3. Re: Anyone here from Canada, how does GST work?
    SolariPhone Level 1 Level 1 (0 points)
    GST is included in the 2.99 app, apple doesn't charge GST on top, Apple will withhold the GST and will remit it to the CRA, you have to full out "Canadian Tax Form GST506 E" form and mail it to
    Apple Canada, Inc.
    c/o Apple Inc.
    MS 198-2RA
    12545 Riata Vista Circle
    Austin, TX 78727
    USA
  • 4. Re: Anyone here from Canada, how does GST work?
    aapl.crox Level 1 Level 1 (0 points)
    SolariPhone: No, taxes are collected from the buyer from Apple. I know this for sure, I have bought apps from Apple myself and the reciept is mailed to all buyers showing the taxes charged.

    Now regarding the remition, are you implying that I do have to do anything extra other than submit the form?
  • 5. Re: Anyone here from Canada, how does GST work?
    SolariPhone Level 1 Level 1 (0 points)
    I am sorry I was wrong abut the GST is part of the App price.


    ********* the following is off Apple iTunes Connect ********

    For developers registered for Goods and Services Tax/Harmonized Sales Tax (GST/HST), please download the PDF file below containing the GST/HST election form (GST506) by which you, the developer, elect to have Apple Canada, Inc. collect, remit and account for GST/HST on the sale of Licensed Applications made on your behalf to end-users in Canada. Kindly complete, sign and return to Apple Canada, Inc. the GST/HST election form following the instructions below. By signing and submitting this form to Apple Canada, Inc., you certify that you have entered your valid GST/HST registration number on the form. For more information, visit the Canada Revenue Agency website at www.cra-arc.gc.ca/. Note: Apple Canada, Inc. may not sell your licensed application to end-users in Canada and you will not be paid for any sales of licensed applications in Canada until this form is properly completed, signed and returned to Apple Canada, Inc.

    Pursuant to Schedule 2 of the Developer Agreement, if you do not submit this GST/HST election form to Apple Canada, Inc., you are certifying that you are not registered for GST/HST and are not a resident of and do not carry on business in Canada for GST/HST purposes.

    Instructions: Please download the PDF file above containing the GST/HST election form, print, complete and sign the form and return the signed original to Apple Canada, Inc. for its signature. Please ensure that the form is signed by an authorized representative of your company. Following Apple Canada, Inc.’s receipt of the signed forms, Apple Canada, Inc. will send to you a jointly signed and executed copy of the election form which you are required to retain in your records.

    Mail signed form to:

    Apple Canada, Inc.
    c/o Apple Inc.
    MS 198-2RA
    12545 Riata Vista Circle
    Austin, Texas 78727
    USA
  • 6. Re: Anyone here from Canada, how does GST work?
    sunnyos Level 1 Level 1 (0 points)
    Hi Drexus,

    Question once again,

    As an independent developer, do I need to get a GST# ??

    I elect Apple through form GST506 to collect / submit GST on sale of my application. but does that translate into a (developer) requirement to get a GST#?

    Also, I'm not sure about this, but upto CAD30,000, you do not need to have a GST# but i am not sure of this information. I'm asking this to save myself the hassle of paperwork especially if I dont know much money i will make.. For a small amount, it would just be added cost and papers.

    Could someone help me understand if by signing form GST506, am I required to get a GST#?

    Thanks
  • 7. Re: Anyone here from Canada, how does GST work?
    alexcurylo Level 1 Level 1 (115 points)
    What you're missing here is that you need to file GST forms to claim a rebate. Which, if you're not selling much, you're almost certainly due. How much GST did you pay on your computer, just for starters? Well, that's probably a decent hourly rate for filling out a couple forms all by itself, isn't it?

    And seriously, if you're keeping any kind of coherent financial records whatsoever, filling out the GST forms is a matter of ten minutes. Tops.
  • 8. Re: Anyone here from Canada, how does GST work?
    sunnyos Level 1 Level 1 (0 points)
    Thanks Alex, I appreciate your response.. Apologies for my ignorance, I am new to Canada.

    My confusion is not about GST Rebate , it is about getting a GST number or getting a business number.

    Do I need to get a GST number or Business number to publish on app store and get paid...???

    Getting a business number would require me to take additional approvals from my employer where i am permanently employed, my employer DOES NOT do iphone development.

    Although I have consent regarding development and publishing commercial apps in my own time, I would need to follow a complex process if I decide to get a business in my name.

    Hence my question... Do I need to get a GST# or incorporate or get a business number? Or just filling the form W-8ben be enough?

    thanks again..
  • 9. Re: Anyone here from Canada, how does GST work?
    alexcurylo Level 1 Level 1 (115 points)
    In theory there is no absolute federal requirement to obtain a business number until you reach $30,000 of self-employed income, or hire employees.

    In practice, if you don't have the appropriate numbers to put in the right places on all the various forms like this one, it's going to cause you far more delays and annoyances than just getting one will. As well as put you on Revenue's short list for auditing. You don't want to be there.

    You've already spent more time in this discussion about avoiding it than just signing up for one and filing returns for the next decade would take.