... | ... | @@ -7,10 +7,10 @@ This document is work in progress. Please talk with your accountant to make sure |
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# Taxable Memberships for Professional Associations
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* In Canada, memberships can be taxable (not always, depends on many criteria).
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* The membership is usually taxed with the tax rate of the main address (home) of the person.
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* Depending on the provincial participation to HST (harmonized taxes), the tax rate might be the full HST rate of the province, or only GST.
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* The membership is usually taxed with the tax rate of the main address (home) of the person. From a technical tax perspective, the place of supply for online services is the location where the member would typically access the services. If it was a business's membership in an association, then it would be the organization's address. If the membership services were for offline things like swimming and yoga at a community centre, then the place of supply would be the community centre, and the tax jurisdiction would be based on its address rather the member's (who may live in a different province when cities straddle provincial borders like Ottawa-Hull).
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* Depending on the provincial participation to HST (harmonized taxes), the tax rate might be the full HST rate of the province, or only GST, or GST and a Provincial Sales Tax (https://www.taxtips.ca/salestaxes/sales-tax-rates-2018.htm).
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Example: an organization in Ontario has members from all provinces in Canada. For members from Ontario, they will charge 13% HST, for members from PEI they will charge 15% HST, but for members in Quebec or Saskatchewan they will charge 5% GST.
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Example: an organization in Ontario has members from all provinces in Canada. For members from Ontario, they will charge 13% HST, for members from PEI they will charge 15% HST, for members in Quebec or Saskatchewan they will charge 5% GST, and for members in Manitoba they would charge 5% GST and 8% PST.
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If the organization is based in Quebec, they will charge 13.975% GST+PST to Quebec members, 13% HST to Ontario members, etc.
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... | ... | @@ -41,5 +41,5 @@ Some accountants don't mind having all the taxes in the same account, others nee |
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## Move some of this documentation under 'dev/financial'
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* Events: Taxes can also apply to Events (and follow different rules).
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* Events: Taxes can also apply to Events. For online events, the discussion above regarding memberships sets things out nicely. For in person events, the event location determines the taxes that apply.
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* Other payments: ex: invoicing for ads in a newsletter, a booth at a congress, selling t-shirts... |
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