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As an independent sales rep paid on a commission basis, does my company have to pay me the HST on my commission rate?
Nov 2, 2012 | The Canadian Professional Sales Association lock

According to the Canada Revenue Sales Agency (CRA), as an independent sales representative (someone who is not an employee of the company) can charge the appropriate taxes on their commission rate if the commission earned is expected to be more than $30, 000 annually. In this case, the sales representative must apply and register for an HST number with the CRA.

If the sales representative is expected to receive less than $30, 000 in commission, then they do not need to register for an HST number, nor charge taxes to the company.

For more detailed information specific to your unique case, please consult with a lawyer, a financial advisor, or the CRA.

Click here to view this answer in French.


Recommended Reading:
- Independent Sales Representatives and the GST: To Tax or Not to Tax Examples
- Independent Sales Representatives and the GST: Conditions for Zero-rating

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