Action Sports Cartel

Sold to my first american client the other day, and I'm trying to figure out a few things...

When you invoice an american company do you usually do it in US or Canadian funds? Any tips on how to do it legitimately? Are they tax exempt?

Cheers!

I'm not a full expert on this, but I do a lot of work for the TugMcGraw foundation, it confuses the hell out of them when I invoice in Canadian, so I invoice in American. I include the tax in my price, and don't mention it in the invoice, this year is the first year where I'll have to figure out what taxes I do have to pay etc, so I'll let you know what's up in a couple of months.

But you should probably charge them in USD.

I work with a few US mags (from Australia) & I have always invoiced in American dollars. I pay a few dollars to convert to AUD when it hits my account & I pay normal Australian business income tax on it.

Hey Daniel,

Here are a few tips.

1. charge in US, like Brian said it confuses people from other countries and adds a step to the process that can slow down when you get your money. If you are going to do A Lot of business in US funds (cash on site from tourists and or commercial clients) look at getting a US Currency account then as the dollar bounces around you can make a little extra on the side when you sell the US. You can also save money on exchange if you go to the US on holidays or buying gear.

2. When dealing with customers out of country you do not charge tax of any kind. You might want to look into this one a little further just to make sure you do it right. If the client paid for your images when they are in the country you charge both Provincial and Federal tax because its products purchased in Canada when they are in Canada. Since you are invoicing a company out of country you don't charge tax. Thats my experience...

3. When dealing with Canadians from other provinces: If they purchase on site you charge both taxes if you are invoicing someone in another province you only charge GST. This is one reason why provinces are moving to an Harmonized Sales Tax. If they charge HST no matter where people are they have to pay HST in stead of just the 5% GST. Provinces make more money.

I buy gear in Ont from time to time and normally I only pay 5% GST I think their HST kicked in Jan.1st and if thats the case I have to pay 12 or 13% HST, then its up to the seller to send the $ to the province and feds.

All this tax shit sucks but we have to follow the rules or we are the ones to pay. Make sure you check into things and set it up right the first time to avoid any fees or penalties.

I hope that helps.

Thanks a million everyone - Kelly that was awesome to take the time to write that up. Makes sense to me now! I'll hold off on the american funds account but if I find myself doing a LOT of business i'll take a look deeper into that.

Sweet, great to hear you found it all useful!!!

If you have more questions post away and I will share what i know.

Take Care