Zero-Rated vs Taxable: When Your Subscribers Are Outside Canada

Canadian creators on platforms like OnlyFans, Twitch, and Patreon must navigate GST/HST rules to determine when digital services to subscribers are zero-rated (0% GST/HST) or taxable, as outlined by theCanada Revenue Agency (CRA). This 2025 guide provides a simple framework for creators to decide when supplies to non-Canadian subscribers (e.g., U.S., U.K.) are zero-rated versus taxable (e.g., 5% GST in Alberta, 13% HST in Ontario) for Canadian subscribers. It includes scenarios for subscriptions, tips, and bundles, with documentation tips to ensure a CRA-proof audit trail. Creators must register for GST/HST if worldwide taxable supplies, including zero-rated sales, exceed $30,000 in four quarters. Proper tracking in QuickBooks Online (QBO) and location evidence are critical for compliance. You always need a professional like 786 Venture CPA to manage your taxes as an influencer.

TL;DR

Supplies to Non-Residents May Be Zero-Rated: Digital services (e.g., subscriptions, tips) to non-Canadian subscribers are typically zero-rated (0% GST/HST) but count toward the $30,000 GST/HST registration threshold. Supplies to Canadian subscribers are taxable based on province (e.g., 14.975% GST+QST in Quebec). TaxTips.ca GST/HST Guide.
Keep Location Evidence: Save billing addresses, IP data, or platform logs to prove subscriber location for audits.

Framework for Zero-Rated vs Taxable Supplies

The CRA’s Place of Supply rules determine whether digital services are zero-rated or taxable based on the subscriber’s location, using indicators like billing address or IP. Below is a three-step framework with scenarios for OnlyFans, Twitch, and Patreon to help creators apply GST/HST correctly.

Step 1: Identify Subscriber Location

Use platform-provided data (e.g., billing address, IP, payment method) to confirm if the subscriber is in Canada or abroad. Platforms like OnlyFans provide CSVs with billing addresses; Twitch includes location data for Bits.

Example: A Patreon subscriber with a U.K. billing address is non-Canadian (zero-rated). An Alberta subscriber’s address triggers 5% GST.
Documentation: Save platform CSVs or screenshots showing location (e.g., “U.S. billing for $50 Twitch tip”).

Step 2: Apply GST/HST Rules

Non-Canadian Subscribers: Zero-rate supplies (0% GST/HST) but include in the $30,000 threshold. Convert USD to CAD usingBank of Canada exchange rates for accurate tracking.
Canadian Subscribers: Charge GST/HST based on province (e.g., 13% HST in Ontario, 5% GST in Alberta, 5% GST + 9.975% QST in Quebec). Since July 2021, platforms may collect taxes, but registered creators report them.CRA GST/HST for Digital Economy.
Mixed Supplies: For bundles serving both Canadian and international subscribers, allocate taxes proportionally (e.g., 60% taxable for Canadian portion).

Step 3: Record in QBO

Configure QBO with tax codes for provincial rates (e.g., 5% GST, 13% HST, 14.975% GST+QST) and a “Zero-Rated” code (0%). Categorize revenue (e.g., “OnlyFans Subscriptions,” “Patreon Bundles”) and track toward the threshold.

Example: A $100 USD OnlyFans subscription from a U.S. subscriber (~$140 CAD at 1.4 CAD/USD) is zero-rated. A $75 CAD subscription from Quebec incurs $3.75 GST + $7.48 QST (total $86.23). Record both in QBO with appropriate tax codes.

Scenarios

1. OnlyFans Subscriptions

Scenario: A U.S. subscriber pays $50 USD monthly (~$70 CAD). An Ontario subscriber pays $100 CAD. A Quebec subscriber pays $80 CAD.
Tax Rules: U.S. subscription is zero-rated; Ontario incurs 13% HST ($13, total $113); Quebec incurs 5% GST ($4) + 9.975% QST ($7.98, total $91.98).
QBO Entry: Record $70 CAD as “OnlyFans Revenue” (zero-rated) for U.S., $100 CAD + $13 HST for Ontario, $80 CAD + $4 GST + $7.98 QST for Quebec.
Documentation: Save OnlyFans CSVs showing subscriber addresses and taxes.

2. Twitch Tips (Bits)

Scenario: A German viewer donates 1,000 Bits ($10 USD, ~$14 CAD). An Alberta viewer donates $25 CAD. An Ontario viewer donates $50 CAD.
Tax Rules: German tip is zero-rated; Alberta incurs 5% GST ($1.25, total $26.25); Ontario incurs 13% HST ($6.50, total $56.50).
QBO Entry: Record $14 CAD as “Twitch Revenue” (zero-rated) for Germany, $25 CAD + $1.25 GST for Alberta, $50 CAD + $6.50 HST for Ontario.
Documentation: Save Twitch payout reports and chat logs showing donor location.

3. Patreon Bundles

Scenario: A $150 CAD bundle serves 40% Canadian (Ontario) and 60% international patrons. A U.S. patron pays $100 USD (~$140 CAD). A Quebec patron pays $120 CAD.
Tax Rules: For the mixed bundle, 40% ($60 CAD) incurs 13% HST ($7.80); 60% ($90 CAD) is zero-rated. U.S. bundle is fully zero-rated. Quebec bundle incurs 5% GST ($6) + 9.975% QST ($11.97, total $137.97).
QBO Entry: Record $60 CAD + $7.80 HST and $90 CAD zero-rated for mixed bundle; $140 CAD zero-rated for U.S.; $120 CAD + $6 GST + $11.97 QST for Quebec.
Documentation: Save Patreon CSVs detailing bundle contents and locations.

Compliance Tips for 2025

Track $30,000 Threshold: Include zero-rated sales (e.g., $10,000 USD = $14,000 CAD at 1.4 CAD/USD + $17,000 CAD Canadian = $31,000) to determine registration. Use platform CSVs.
QBO Tax Codes: Set up codes for provincial rates and zero-rated sales. Categorize by platform (e.g., “Twitch Tips”).
Claim ITCs: If registered, claim ITCs on expenses (e.g., $130 ITC on $1,000 Ontario camera, 13% HST).
Audit Trail: Keep CSVs, bank statements, and QBO reports for six years. Note locations (e.g., “U.K. IP for $100 USD bundle”).
Verify Location: Use platform data (billing address, IP) to confirm subscriber status. Save proof for audits.

Adopt the CRA Export Sales Policy and file it in your SOP. Book a 15-minute Creator Tax Check in Calgary with 786 Venture CPA: Contact Us. Stay compliant and focus on creating.