New GST/HST Rules for Digital Commerce
Co-written by Emily Donahue, law student Since July 1st 2021, foreign-based businesses with no physical presence in Canada selling digital products or services to Canadia...
Did you know that free products received by an influencer or content creator on social media can be considered as a source of income for tax purposes?
Be it on TikTok, Twitch, Instagram, etc., influencers and content creators must pay taxes on all of their income, which can be both monetary and non-monetary. Income includes not only amounts received from subscriptions, product placements, product promotions, but also products received free of charge, voluntary contributions, trips, etc.
Likewise, an influencer or content creator who makes product placements in exchange for money or gifts may also, for tax purposes, be considered to be offering a taxable service. Depending on the extent of their income, influencers or content creators may be required to file and remit tax returns.
So, if you are an influencer or a content creator, there are many elements to keep in mind about your social media income. Thankfully, a tax professional can advise you on your situation and provide you with relevant tax advice.
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