Income generated through Exmerce is taxable in the year in which the sale occurs.
The Federal Government of Canada considers barter a viable form of commerce, which means belonging to a barter exchange is a legal way of doing business. The Barter Income Tax Act was passed in 1982, which recognized barter exchanges as third-party record keepers – a status similar to banks. For more information, please refer to the Canada Revenue Agency website: cra-arc.gc.ca
Sales tax, when applicable, is included in the total Exmerce transaction amount. As the seller, you are responsible for collecting sales tax on Exmerce sales and remitting taxes to the Canadian government in cash. Sales tax expenses can be recouped as an Input Tax Credit (ITC) when you spend your Exmerce dollars within the exchange, provided that purchases made are taxable purchases.
* Source: CA Magazine, published by the Canadian
Institute of Chartered Accountant, Toronto,Canada
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