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Tax Tip - Are you a social media influencer? Here's what you need to knowOTTAWA, ON, April 13, 2021 /CNW/ - What is a social media influencer? Social media influencers use social media platforms, such as YouTube, Instagram, Twitch, Facebook, Twitter, or a blog to make posts and build up followers of their content. When posting is a source of income, the Canada Revenue Agency (CRA) considers it a business activity. Did you receive subscriptions, gifts, donations or other income? If you earned income through similar circumstances, such as posts of pictures, videos and more on social media platforms that involve product placement or product promotion, you are considered to be undertaking a business activity. You can earn income in many ways, both monetary and non-monetary, including, but not limited to:
Income tax implications All income (both monetary and non-monetary) that you earn through social media channels must be reported on your income tax return. GST/HST implications There may be a reasonable expectation of profit from your online activities, and your total taxable supplies may be more than $30,000 over four calendar quarters. If so, you will need to register for, collect and pay to the CRA the goods and services tax / harmonized sales tax (GST/HST) on all taxable sales from your online activities. You can get more details on GST/HST registration requirements at Find out if you must register for a GST/HST account. Business expenses Since the income you make from social media is considered usiness income, you can deduct business expenses to reduce your tax owing. Your expenses must be reasonable and directly related to your income as a social media influencer. You must report these expenses on your income tax return. To learn what qualifies as an eligible business expense, go to Business expenses. How to correct your tax affairs If you did not report your income from platform sales and social media activities, you may have to pay tax, penalties and interest on the income. By correcting your tax affairs voluntarily, you can avoid or reduce penalties and interest. To correct your tax affairs (including corrections to GST/HST returns) and report income that you did not report in previous years, you may:
More information You can find more information on this topic at Canada.ca/platform-economy. Stay connected
SOURCE Canada Revenue Agency |