I am looking to start a small individual business.
Basically, in video games there are items that people buy/sell/trade and
sometimes real world money is involved. When people stop playing they sell
their stuff really cheap for real money. When people start playing they pay
higher prices with real money to get good items right away. This is where my
business would come in. Buy the cheap stuff and sell it for higher prices. This
is really easy to account for with one exception. Some people selling are not from
Canada and some people buying are. Some people pay with Bitcoin and won't even
reveal where they are from at all. This creates a problem because of the HST
requirement for sales in Canada. Is there any way to make this work without
excluding a very large part of the market (Canadians)? Losing 13% of the sale
to HST buying from non-Canadians and selling to Canadians is not an option and
marking up the price is not an option either since they will just buy from
competitors. If there isn't any way around that, there is an alternative. A
Canadian website basically lets you list your stuff for sale. They make buyers
buy credits for the website (AND TAX CANADIANS IF NEEDED!!!) and the buyers can
use these credits to buy items. The sellers get the credits for the sale minus
a small commission the site takes. You can cash out these credits for real
money. Since the site charges tax when needed (When people buy credits) is it
safe to assume that HST would not be involved anymore on the sellers end? If it
matters, their T.O.S. states that credits have no monetary value.
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