Introduction

In Canada, the supply of most goods and services is subject to a federal goods and services tax (GST) of 5%. If you are a publisher based in Canada, you may be required to collect Canada GST from some of your advertiser partners.

Additionally, a supply made in a participating province is subject to a supplementary component called provincial sales tax (PST). In Quebec, it is referred to as Quebec Sales Tax (QST). In some provinces, a combined 13% or 15% tax is applied, known as the harmonized sales tax (HST).

Collecting Tax in Canada

If you engage in commercial activity in Canada regularly, you will likely need to register for GST/HST and collect GST/HST on the supplies you make to certain advertisers. You might also need to collect provincial sales tax.

GST/HST Account Number

If you are required to collect GST/HST, you will receive a GST/HST account number as part of your registration process. The GST/HST account number is a tax identification number. Please provide this number to us via your Publisher Manager if you have one, or in response to the email we send asking you to notify us of your GST/HST status. If you do not have a GST/HST account number when you launch your program but register for one later, it is your responsibility to provide it to us.

If you are registered for PST or QST in one or more provinces, please make sure to provide those registration numbers to us as well. 

Adding or Updating Your GST/HST Account Number, PST or QST Number 

You can add or update your tax registration numbers in your account details in the Publisher Dashboard. 

1. Go to Account in the navigation header and click Account Details.
2. In the General tab, scroll down to the Tax Declaration sections and add your GST/HST account number, and your PST or QST number. 

When are Canadian taxes applied?

If you are subject to GST/HST, Rakuten Advertising will collect the relevant tax from advertisers on your behalf. If you are also registered for PST or QST, Rakuten Advertising will collect the relevant provincial sales tax on your behalf where applicable.

If you are partnering with an advertiser physically located outside of Canada, as a general rule your taxable supply is considered an export, and therefore is not taxed. If you are not subject to GST/HST, Rakuten Advertising will not collect this tax from any advertiser on your behalf.

Tax Invoice Details

Once your advertiser partners approve your related commissions, invoices are generated for each calendar month during which you have provided services to the respective advertisers. Events such as a bonus or cancellation of commissions previously accepted by advertisers can also trigger the generation of a tax invoice. The tax invoice states the amounts of commissions approved, commissions cancelled, and bonus granted by the respective advertiser. Tax is added to these amounts where applicable.

We generate publishers’ tax invoices addressed to advertisers through our platform, in the name and on behalf of the publisher. Such invoices indicate the tax number of the publisher and the tax number of the advertiser. Rakuten Advertising has no tax obligations in relation to the publisher-advertiser supply, and therefore the invoices do not contain the tax number of Rakuten Advertising.

Rakuten Advertising is only part of the transaction in the specific case of Direct Engagements or Accelerate Engagements. If you have entered into such engagement, your publisher commissions will be invoiced to Rakuten Advertising and not to the Advertiser.

The publisher tax invoices are generated with VAT/GST invoicing requirements in mind and contain the mandatory elements generally required for tax invoices. However, you as the publisher are responsible for verifying the local invoicing requirements of your country; should the tax invoice generated by Rakuten Advertising not satisfy those requirements. For example, if you need an invoice in another language, or special format digital invoices, it is your responsibility to issue compliant invoices for the services you have provided, for your own tax records and filings.

For More Information

If you encounter problems in accessing tax invoices or have further questions, please contact your Publisher Manager or Customer Support.