- If you operate in Canada and use Cleeng Merchant, Cleeng, being a transaction facilitator and merchant of record, is liable to apply the proper sales tax rate (Canada’s VAT equivalent) to transactions between you and your customers and handle all tax return filings.
- Your viewers are automatically charged the correct sales tax at the rate specific to the province or territory in which they are located at the time of sale (not the seller’s or product's location).
- Your viewers see net prices (excl. sales tax) and the sales tax specific to their location is calculated at checkout – as opposed to the gross prices displayed to the users located in Europe, where they see a gross price (incl. VAT) from the beginning.
- To ensure tax compliance in Canada, Cleeng uses the integration with a market-leading sales tax management tool – Avalara.
- The broadcaster payout that you receive from Cleeng is made excluding sales taxes that might have been applied on top of the prices from your offers.
- In Canada, there are different types of sales taxes that depend on the province or territory of the viewer at the time of sales: federal tax (GST/HST) and local sales tax (PST/QST). If a local sales tax (PST/QST) is not applicable in a province, the viewer will be only charged federal tax (GST/HST) during the checkout. To check all the current tax rates across Canada, please refer to Avalara.
How can end-users update the information used to calculate the taxes?
Users can do so by contacting CSS. They will make sure to update the user's information used for tax calculation purposes.
Example of the customer’s receipt:
The tax is calculated on top of the net price.
Example of the customer’s checkout page:
There is a section on the checkout page called [applicable tax], by clicking the question mark, it will explain how we came to the tax fee. On the right side of the checkout page, it will display the exact amount of tax fee they need to pay.
What if there is no local sales tax in my state?
If the local sales tax (PST/QST) is not applicable in your state, you will only be charged federal tax (GST/HST) during the checkout.
How can we inform your customers about possible changes for tax collection?
You can add text to the receipt that informs your customers about the changes, examples can be:
”Your service may have been subject to provincial taxes and fees depending on your location”
“Tax rates vary by province, and are based on the rates applicable to your purchase. These amounts can change over time with local tax requirements.”
You can add such text to the receipt by reaching out to BSS.