GST/HST ITCs for MLM Business

by Jennifer
(Ontario)

I have a debate going on with a few ladies about GST/HST input tax credits for MLM business owners.

Most of the sales are conducted online by consumers who pay a $35.00 fee to become a preferred client and can therefore log onto our web site and purchase products, paying online.

Other sales are at parties. We enter all sales on our website using a party host name. All sales are paid by credit card and the website charges GST/HST.

So the dilemma that we are having is whether or not we can claim GST/HST credits for our business expenses and paid by us as business owners..or contractors for the MLM company.

I don't have an answer for you Jennifer. The best thing to do is ask CRA for a ruling ... or maybe other site visitors out there have knowledge in this area and will take the time to share it with us.

I did a bit of "googling". It took a few different searches but I did come across one MLM article and the outcome of their tax court case. While not directly related to your question, I thought you might find the article interesting. Here is the link:

http://blog.danwhite.ca/2009/09/12/an-important-mlm-tax-court-case-are-product-purchased-tax-deductible/





P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.