Supporting a Kickstarter project: Should a customer’s pledge payment include sales tax, e.g. GST/HST in Canada?

Does Kickstarter have sales tax?

Sales tax may also be applicable in certain cases depending on the local rules. A creator may have an obligation to register, collect, and remit sales taxes in the states in which the backers are located, depending on the dollar amount received and the number of transactions entered into with backers in each state.

Do you charge HST on intercompany transactions?

Inter-company sales Typically you are required to charge and remit GST/HST on inter-company transactions, however, there are special rules that can help ease any resulting cash flow issues this may cause.

Who should charge HST to their customers?

You must register for the GST/HST. Your effective date of registration is no later than the day of the supply that made you exceed $30,000. You have to start charging GST/HST on the supply that made you exceed $30,000.

What conditions must be met before a proposal gets the money that is pledged on Kickstarter?

What conditions must be met before a proposal gets the money that is pledged? For a proposal to get the money that has been pledged, it must meet or exceed their funding goal within a certain time period. If it is not met, the money is then given back to the people who pledged.

Do you pay sales tax on crowdfunding?

You may owe state sales tax and income tax.

If you accept crowdfunding proceeds from the state you operate in, and that state has a sales tax, you may need to remit sales tax. The same goes for income tax. Check with your state to be sure.

What happens when you pledge on Kickstarter?

Once your pledge has gone through you should receive a confirmation email to confirm that you are now a backer of the project. If the project is successfully funded, your card will be charged when it reaches its deadline.

Should be GST charged on intercompany invoices?

Inter-company transactions are often another area of non-compliance. Taxable supplies of property or services (i.e., management fees) between related companies are generally subject to GST/HST, unless the section 156 election is filed.

What is a GST 44 election?

GST44 GST/HST Election Concerning the Acquisition of a Business or Part of a Business – Canada.ca.

What is an RC4616?

RC4616 Election or Revocation of an Election for Closely Related Corporations and/or Canadian Partnerships to Treat Certain Taxable Supplies as Having Been Made for Nil Consideration for GST/HST Purposes – Canada.ca.

What three things should every Kickstarter project have?

Every Kickstarter project should have the following:

• A project page with a video and description that clearly explain the story behind your project.
• Rewards that backers will receive when the project is completed.
• Updates that share the creative journey as the project comes to life.

What fees are charged to the borrower Kickstarter?

If your project is successfully funded, the following fees will be collected from your funding total: Kickstarter’s 5% fee, and payment processing fees (between 3% and 5%). If funding isn’t successful, there are no fees.

What is not allowed on Kickstarter?

Any item claiming to diagnose, cure, treat, or prevent an illness or condition (whether via a device, app, book, nutritional supplement, or other means). Contests, coupons, gambling, and raffles. Energy food and drinks. Offensive material (e.g., hate speech, encouraging violence against others, etc).

Can nonprofits use Kickstarter?

Projects can’t fundraise for charity.

While nonprofits are welcome to launch projects on Kickstarter, projects can’t promise to raise funds to donate to a charity or cause. Funds raised on Kickstarter must go towards facilitating the project outlined by the creator on the project page.

What happens to the money if a Kickstarter project fails?

Creators will still receive the balance of collected funds, less fees, even if the final amount falls below your project’s funding goal due to dropped pledges. Kickstarter will only collect fees on the funds that we are able to successfully collect.

Can I cancel my pledge after Kickstarter?

After your project has been funded, you can cancel and refund a backer’s pledge at any time. If you do, you have no further obligation to that specific backer, and no agreement exists between you. We’ll charge our fees before putting funds in your account.

How do I manage a Kickstarter pledge?

While a project is live you can adjust your pledge by visiting the project page and clicking the “Manage your pledge” button. On the following page, select “Change your pledge”.

Can you pledge Kickstarter?

While a project is still live you can cancel your pledge by visiting the project page and clicking the “Manage your pledge” button on the right-hand side. From there, click “Cancel Pledge” next to the “Change your pledge” link. Remember, a pledge can only be cancelled while a project is live.

Can you pledge twice on Kickstarter?

How do you do multiple pledges on Kickstarter? You can only pledge to a project once per email address. Accordingly, backers can only choose one reward tier per pledge. However you can add ‘add-ons’.

Can you split pay on Kickstarter?

You can’t do that.

Can you back a Kickstarter project after it is funded?

As Kickstarter does not offer refunds, we encourage backers to investigate the project idea first, to vet the creator thoroughly, and to assess the inherent risk of the project for themselves before making a pledge.

Can you only pledge once on Kickstarter?

We know when a project is offering lots of great rewards it can be tough to decide which one to pick, however it’s only possible to pledge to a project once. Accordingly, backers can only choose one reward tier per pledge.

How do you pledge money?

Pledge cards ask donors to give information like their name, address, and phone number, as well as a pledge amount. They also offer any important information concerning the donor might need, such as payment methods accepted by the organization.

How much can I pledge on Kickstarter?

The maximum amount you can pledge to a project varies based on a project’s country of origin. It is also not possible for a project creator to set a reward tier higher than the maximum pledge amount allowed for their project’s location. The maximum amount you can pledge to a project is: US-based projects: $10,000.