The App Store uses Apple Canada's GST number for Canada tax filing purposes, not yours. Apple Canada is the Agent, you are the Principal. On the form, you are supposed to enter your GST number only if applicable. If you do not have one, the leave this blank. But you must still submit the GST form as a requirement prior to payment in Canada.
Apple is required to charge the customer GST on all sales, and we remit these taxes monthly to the Canada Revenue Agency.
To complicate things, you are also required to pay the GST to Apple on Apple's 30% commission.
However, to make things simpler for developers, Apple has agreed to absorb the GST in its commission, which leaves the commission rate at about 28.5% + GST (for a total of 30%). We will prepare a remittance advice for you each month for Canada sales, which details the GST amounts charged and paid on your behalf.
On Friday, January 15, 2010 8:42:06 PM UTC-5, 1nsane wrote:
We are a small Canadian corporation that files GST. Like all Canadian
corporations that develop for the iPhone, we were required to fill out
the Canadian GST/HST Form 506 which allows Apple to collect and remit
GST on our behalf. We recently received a "GST Tax Advice" document
from Apple that outlines the revenue collected on our behalf and
commission charged by Apple.My question is comprised of 3 parts...
1. Does the "Revenue collected on your behalf" include GST?
2. Do we need to report the GST on the total revenue collected when we
file our quarterly GST Return?
3. Do we deduct Apple's commission as an expense against the total
revenue collected and apply the GST on that commission to our Input
Tax Credits (ITC)?There seems to be very little information on this and it is all quite
confusing. Apple, of course, was no help either =/ Hopefully someone
else has been in the same boat as us and could help us out? It would
be much appreciated.Cheers
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