Frequently Asked Questions

Revenue Canada accepts barter as a legitimate method of payment. Revenue Canada recognizes Exmerce as a third party record keeper for barter transactions. Revenue Canada requires that all barter transactions be reported on your business returns. Exmerce will issue monthly statements to reflect these transactions. For accounting purposes, barter income should be treated like cash.

There are no tax advantages or disadvantages. Exmerce income is treated the same as cash income. It should be considered a marketing tool rather than a tax tool. Cash purchases that are normally tax deductible as business expenses are also tax deductible as trade purchases.

Exmerce eliminates the restrictions of one-to-one bartering in which each business must want what the other has to offer at the exact same time. Exmerce offers a community of more than 400 businesses, making it easier to find what you want quickly. An Exmerce Trade Broker works with you directly to bring your company new sales and increased market share, help you find what you need for your business, and shows you ways to minimize cash outlay for everyday business or personal expenses.

Exmerce is an innovative tool that can help your business conserve cash, generate new business, and turn excess, idle inventory into the products and services it needs to grow. The barter industry accounts for one quarter of the world’s volume of business every year and is growing at a rate of 15% per year.

There is a one-time membership investment to establish your business account. Transaction and modest monthly fees cover accounting, marketing, promotions, and member services.

Similar to a bank, we encourage businesses to apply for an Exmerce line of credit. If you qualify you can begin purchasing immediately. You can also use your Exmerce line of credit to enhance expansion or a new business venture when traditional funding is not available.

Prices quoted to Exmerce members are the same as prices quoted to cash-paying customers. Exmerce allows you to purchase products and services at your own cost of goods. Business owners are educated shoppers. Exmerce is simply another method of payment, just like cash or credit card.

Yes. While there are no unique tax benefits or drawbacks, you must treat Exmerce income as you would regular cash income. This means:

• All barter transactions must be reported on your business returns.
• Sales tax (if applicable) must be collected and remitted to the Canadian government in cash.
• You can use Exmerce transactions in conjunction with the Input Tax Credit (ITC) system.

For more detailed information, consult the Canada Revenue Agency website (cra-arc.gc.ca).

The Federal Government of Canada accepts bartering as a legitimate business practice. Barter exchanges like Exmerce are recognized as third-party record keepers, similar to banks. The Barter Income Tax Act of 1982 formalized this recognition.