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Sales tax or processing charges on management fees?
Do you charge a sales tax on digital services, management fees and or a CC processing fee? On the CC fee how would you approach existing clients with this charge?
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1 Reply
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If you can charge taxes on something is usually written into law. Since we need to pay taxes on revenue, we charge all our Canadian clients the taxes we can.
We don’t charge a credit card processing fee. We just bake those costs into our fees as we know we will pay it…. no different than any other fees to run the business. Clients will have their own fees they need to pay on their end. Most clients pay us faster with a credit card. Well worth a few a few percent.
With any change, we give clients 2 – 3 months notice and usually implement stuff starting Jan 1st of the next year. Keeps it clean and easy to keep track of.
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