Canada. Online Businesses needs paying tax?

I am wondering what I should be doing and not doing because I am not good in tax stuff. I have a shared-web hosting running and I have the servers and everything outside Canada and the only operator (me) is in Canada. Do I need to pay taxes or something to the government for doing this shared-web hosting? How does it work? Do you pay tax to your government from your internet earnings? What can happen if you don't?



Thank you

 

I do the same thing, my team is based out of Vancouver BC but our servers are located down in Arizona.

The short answer is YES you have to pay taxes. If you are running a legit business and have a license, you need to do your book keeping and pay taxes. You are also liable for HST for any customers you get that are from Canada, which is a pain because you have to decide if you want to set your billing system to automatically add it for canadians or if you want to just suck up the HST yourself and save your customers from paying it (which is what we do).

You need to talk to a lawyer, which is something you should have done before you started your business. If you get caught by the CCRA doing business without a license and without paying tax you'll be in for a world of hurt.

EDIT: If you don't have a license, then you're acting as a proprietorship which means any revenue you get from your business counts against your personal tax returns each year and if you don't know what you are doing it can really hurt you.

 

Okay, I've got myself a licence Thanks.