10 Canadian Creator Tax Myths—Debunked (OnlyFans, Twitch, Patreon)

Canadian creators on platforms like OnlyFans, Twitch, and Patreon often face confusion about tax obligations due to myths about GST/HST, income reporting, and compliance with theCanada Revenue Agency (CRA). This 2025 guide debunks 10 common tax myths for creators, addressing misconceptions like “tips aren’t taxable” and “foreign subscribers don’t count toward the $30,000 threshold.” With examples for subscriptions, tips, and bundles in provinces like Alberta (5% GST), Ontario (13% HST), and Nova Scotia (14% HST as of April 1, 2025), this guide ensures clarity and audit-proof compliance. Proper QuickBooks Online (QBO) setup and documentation are key to avoiding penalties. You always need a professional like 786 Venture CPA to manage your taxes as an influencer.

TL;DR

• Myth: “Platforms charge GST so I don’t register.” Wrong—creators must register for GST/HST if worldwide taxable supplies exceed $30,000 in four quarters, even if platforms collect taxes.CRA GST/HST for Digital Economy.

• Myth: “Foreign subs don’t count toward $30k.” Wrong—zero-rated sales (e.g., U.S. subscribers) count toward the threshold. TaxTips.ca GST/HST Guide.

• Myth: “Nova Scotia is 15% forever.” No—HST dropped to 14% on April 1, 2025.CRA GST/HST Rates.

Debunked: 10 Creator Tax Myths

Below are 10 common tax myths for Canadian creators, with facts, examples, and documentation tips to ensure compliance.

1. Myth: “Tips aren’t taxable.”

• Fact: Tips tied to content or services (e.g., OnlyFans photos, Twitch shoutouts) are taxable. Purely gratuitous tips are rare and need proof of no quid pro quo.

• Example: A $50 Twitch tip from Alberta (5% GST = $2.50) is taxable. A $100 USD U.S. tip ($140 CAD at 1.4 CAD/USD) with no content is non-taxable but counts toward the $30,000 threshold.

• Documentation: Save platform CSVs and chat logs (e.g., “$50 tip for emote, Alberta”).

2. Myth: “Platforms charge GST, so I don’t register.”

• Fact: Since July 2021, platforms like Patreon collect GST/HST, but creators must register if supplies exceed $30,000, reporting platform-collected taxes.

• Example: An Ontario creator with $20,000 CAD subscriptions (13% HST = $2,600) and $15,000 CAD U.S. sales ($10,000 USD) must register ($35,000 total).

• Documentation: Save CSVs showing taxes collected. File via CRA NETFILE.

3. Myth: “Foreign subs don’t count toward $30k.”

• Fact: Zero-rated sales to non-Canadian subscribers count toward the $30,000 threshold.

• Example: A $200 USD Patreon pledge ($280 CAD) is zero-rated but included in threshold calculations.

• Documentation: Save CSVs with subscriber locations (e.g., “U.S. billing”).

4. Myth: “Nova Scotia’s HST is 15% forever.”

• Fact: Nova Scotia’s HST dropped to 14% on April 1, 2025, per CRA updates.

• Example: A $100 Nova Scotia subscription incurs $14 HST (not $15) after April 1.

• Documentation: Use QBO tax code for 14% HST post-April 2025.

5. Myth: “I don’t need to track expenses.”

• Fact: Deductible expenses (e.g., equipment, internet) reduce taxable income on T2125. ITCs lower GST/HST liability.

• Example: A $1,000 Alberta camera (5% GST = $50) yields $50 ITC and $1,000 deduction.

• Documentation: Save receipts and QBO expense reports.

6. Myth: “USD payouts don’t need conversion.”

• Fact: Convert USD to CAD usingBank of Canada exchange rates for QBO and CRA reporting.

• Example: A $500 USD OnlyFans payout ($700 CAD at 1.4 CAD/USD) is recorded as $700 CAD revenue.

• Documentation: Save FX screenshots and bank statements.

7. Myth: “Home-office deductions are too complex.”

• Fact: Prorate rent or utilities by business use (e.g., square footage) for T2125.

• Example: A $2,000/month Calgary rent (10% office) yields $200/month deduction.

• Documentation: Save lease and floor plan.

8. Myth: “I don’t need records for six years.”

• Fact: CRA requires six-year retention of CSVs, receipts, and QBO reports.

• Example: Save Twitch CSVs and $1,000 software receipt for audits.

• Documentation: Export QBO’s Sales by Customer report.

9. Myth: “GST/HST filing is optional.”

• Fact: Mandatory for supplies over $30,000. Late filing incurs 1% monthly penalties + interest.

• Example: A Quebec creator files GST/QST on $25,000 CAD revenue via Revenu Québec.

• Documentation: Save filed GST34-2 forms.

10. Myth: “All income is taxed the same.”

• Fact: Zero-rated international sales (0% GST/HST) differ from taxable Canadian sales but all count toward income.

• Example: A $100 Ontario bundle (13% HST) vs. $100 USD U.S. bundle ($140 CAD, zero-rated).

• Documentation: Save CSVs with tax and location details.

Compliance Tips for 2025

1. Track Threshold: Include zero-rated sales (e.g., $15,000 CAD from $10,000 USD) for $30,000 limit.

2. QBO Setup: Use tax codes (5% GST, 13% HST, 14% HST for Nova Scotia).

3. ITCs: Claim on expenses (e.g., $130 ITC on $1,000 Ontario equipment).

4. Audit Trail: Keep CSVs, receipts, and FX logs for six years.

5. Filing Deadlines: File T2125 by April 30, 2026; GST/HST per schedule.

Download theCRA GST/HST Compliance Toolkit (rates, threshold calculator, checklist) to stay compliant. 

Book a 15-minute call for a Tax Compliance Check withus. Reply “TAX HELP” for help with GST/HST setup.