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What taxes need to be paid on website hosting services?
Expert: John R Mott
Tyler asked:
What kind of taxes would I have to pay if I start a business buying and selling website hosting space? What if I expand into the independent game development market, selling shareware (try before you buy) products? I live in Edmonton, Alberta, Canada.
John R Mott answered:
I suggest that you read CRA's technical bulletin on GST and Electronic Commerce: http://www.cra-arc.gc.ca/E/pub/gm/b-090/b-090-e.html.
You live in Alberta, so retail sales tax should not be an issue. If you happen to make a profit at these activities, then you will also be subject to federal and Alberta income tax.
About the author
John Mott is a chartered accountant and tax specialist with a private practice in mid-town Toronto. He provides tax, accounting and advisory services to individuals and small businesses. He may be visited online at: johnmott.com.