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Taxnoob
Level 1

Confused about T4A and charging GST

I recently got recruited to promote services for a company.  Kinda like selling spa packages.

 

I am not employed by them.  They give me a cost pricing on a service and whatever I sell over the cost is my income.

 

For example a cost on a spa package is $1000, if I sold it for $1500, I would call in the client's credit card information to the spa, and they would directly charge $1500 plus gst.  They would then pay me $500 in this example.  So at the end of the year if my earnings exceed over $30,000, let's say I made $50,000 how does "charging gst" work?  Since the GST was charged already to the person who bought the package.  

1 Comment 1
maha1
Level 4

Confused about T4A and charging GST

you need a gst registration. company should pay you $500 plus gst. you need to remit the gst after adjustments, if any......