Just joined up and realized this opens up a whole new world of possibilities as well as headaches. Reading Steam's tax policy, they do not collect Canadian HST but they consider the HST to be IN the price of the items they sell to us. So as an operator, normally we would get to write off the HST we pay for goods/services...but in this case Valve is not actually collecting the tax, so I don't think we can technically write it off.
To compound things, technically there should be some sort of tax being paid but rules along internet sales of a good/service that actually doesn't cross the border through a brokerage firm, laws are vague or non-existent. To even further compound things we ARE selling a product based off the goods/service received and that product IS taxed with HST.
So if my thought process is right, we consider the goods/service we get from Springboard/Valve as "Cost of goods" sold. We are paying HST through our sale and should be able to write off the 'tax' we pay on the goods/service it takes to create our product. Only question is will the Canadian government feel they should get tax on both the CoGs AND our product we are selling?
Tax law is a pain in the arse!
