GST/HST Rules for Digital Products Sold via Crowdfunding: Artist Registration and Tax Collection

• Digital artists selling design files via reward-based crowdfunding must register for GST/HST and collect tax.
• Digital files are considered intangible personal property, and tax is due on the full pledge amount before fees.
• The applicable tax rate depends on the supporter’s location; if unknown, the highest provincial rate applies.
• The artist, not the crowdfunding platform, is responsible for fulfilling contracts and remitting taxes.

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.

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