- A Canadian individual granted a Canadian Web Publisher worldwide rights to distribute and reproduce videos.
- The Web Publisher posted the videos on a platform and received a percentage of advertising revenue.
- The CRA determined that the consideration paid by the Web Publisher to the individual was subject to GST/HST.
- The CRA concluded that the worldwide rights granted to the Web Publisher could be used in Canada.
- The individual’s supply was subject to GST/HST because of the licensing agreement with the Web Publisher.
- If the individual had dealt directly with a non-resident platform not registered under the regular registration provisions, the supplies would have been zero-rated.
Source: taxinterpretations.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
