Canadian Indie Publishers, Kindle, Smashwords, etc. and GST
Hey,
I've been very stumped lately, and unless I want to pay someone a bunch of money to have my question answered, I need to find it for free. This has been hard.
I don't know how many of my fellow warriors are writers and Indie Publishers, but hopefully someone who reads this will know instantly the answer and have some advice for me. I've been searching for the answer for a long time.
As an Indie publisher, we often use Kindle, Smashwords, etc. as our storefronts. These companies sell the product for us. They charge the taxes, cover their expenses, take their cut, and give us our money.
We often use digital books, or Print-On-Demand (POD) to print. So our expenses are covered as we sell each book. We may have a production cost which we cover, and once covered, all money is profit.
I understand we sell a book, we collect GST. As far as I know, books are not subject to PST or the provincial half of HST in Canada.
What I'm confused about is what to do after Kindle collects the taxes. When I submit a GST Tax form once a year they ask me to state how much I have made. I then have to state how much GST was collected. If they ever decide to question why a large chunk of GST is not collected in relation to how much was made, that may cause problems.
But it was collected, by Kindle, or any other company that sells the book or my behalf. Am I supposed to collect it again? That doesn't make much sense. Traditionally a store would by my books with GST charged. They get remitted with Input-Tax-Credites (ITC) and charge GST after they sell each book. But with Kindle we are skipping the process. They aren't buying the books from us to sell, so aren't paying me GST. They are given books free, essentially, and taking cut of the profits from each book sold.
So if any of the Canadian Indie Publishers, or fellow warrior who knows about what I'm talking about, have experienced this situation, please let me know how to go about it. Or I'll have to pay some expensive lawyer to answer my question for me.
Thanks
I've been very stumped lately, and unless I want to pay someone a bunch of money to have my question answered, I need to find it for free. This has been hard.
I don't know how many of my fellow warriors are writers and Indie Publishers, but hopefully someone who reads this will know instantly the answer and have some advice for me. I've been searching for the answer for a long time.
As an Indie publisher, we often use Kindle, Smashwords, etc. as our storefronts. These companies sell the product for us. They charge the taxes, cover their expenses, take their cut, and give us our money.
We often use digital books, or Print-On-Demand (POD) to print. So our expenses are covered as we sell each book. We may have a production cost which we cover, and once covered, all money is profit.
I understand we sell a book, we collect GST. As far as I know, books are not subject to PST or the provincial half of HST in Canada.
What I'm confused about is what to do after Kindle collects the taxes. When I submit a GST Tax form once a year they ask me to state how much I have made. I then have to state how much GST was collected. If they ever decide to question why a large chunk of GST is not collected in relation to how much was made, that may cause problems.
But it was collected, by Kindle, or any other company that sells the book or my behalf. Am I supposed to collect it again? That doesn't make much sense. Traditionally a store would by my books with GST charged. They get remitted with Input-Tax-Credites (ITC) and charge GST after they sell each book. But with Kindle we are skipping the process. They aren't buying the books from us to sell, so aren't paying me GST. They are given books free, essentially, and taking cut of the profits from each book sold.
So if any of the Canadian Indie Publishers, or fellow warrior who knows about what I'm talking about, have experienced this situation, please let me know how to go about it. Or I'll have to pay some expensive lawyer to answer my question for me.
Thanks
>>>Get your websites ACTUALLY ranked by checking these out: Quantum SEO Labs, Home Page Link Building & SERP Ability. Want to get rid of negative listings? Check out Reputation Enhancer.