A few things I’m noticing which I did not know before about working in Ontario/Canada:

1. Small Supplier (GST): In Canada, if your business (business/sole proprietor) makes under $30,000/year or calendar quarter you do not need to charge customers GST. However, in turn this lets your clients know that you make/expect to make under the “small supplier” threshold of $30,000/year. (Assuming they know about this little rule).
   Making more than $30,000? Then you register for an official GST number to charge people with and pay the GST you collect to the government.
2. GST is not charged to foreign customers. I don’t know why that is news to me … but it makes sense. Presumably this applies to PST as well, including inter-provincial business. Why does it make sense to charge an Albertan 8% Ontario sales tax?
3. Ontario PST (or RST … as I am now learning it is called by the gov’t) apparently is not charged for web design + xhtml/css/”presentational” markup; languages such as javascript and php apparently do not qualify for PST, either — as they are delivered as non-compiled code. Neat. With that being said, there are some exceptions on the delivery of the final product, which summed up basically says “You charge tax if the site or any of its assets are provided to the client in hard-form”:
   • “the design is transferred to clients electronically, or placed on the Internet, and”
   • “it is not provided in a hard copy version (i.e., disk, CD or paper copy), and”
   • “the webpage does not qualify as a taxable computer program.”
   • ^ link (http://www.rev.gov.on.ca/english/interp/rst/agd0006.html)
4. Ontario PST: If you create a “TPP” (Tangible Personal Property) you have to charge PST on it. This means anything made to be printed. For example: brochures, direct mail flyers, logos, coupons, gift certificates, posters, catalogues, business cards, letterheads, envelopes. So if what you’re making COULD be turned into “taxable matter”, then you must charge PST.
   *My interpretation of this one feels flawed, since it mentions that if you were to give it to the client electronically, taxes do not apply. See here, 3rd paragraph under “Artwork and/or Graphic Design Services”.
5. Sole Propriety: It’s kind of scary, but if you don’t incorporate and somehow rack up a lot of debt, creditors can go after your personal property. However, if you incorporate your personal assets are separate from the company’s. Neat.

I guess a disclaimer is in order since I am by no means a tax expert. If you use my advice I am in no way liable for any wrongdoing it may cause. Taxes suck, and while I might be completely wrong — I think it’s better to be at least somewhat informed about what’s going on than remaining in the dark until the government wants to audit me or something.

You know what still makes little sense to me? Income tax + freelance work. Ah.