I live in Canada. If I offer photos for sale at a profit to anyone anywhere in the world and receive payment through my PayPal account am I not solely responsible to the Canadian "IRS" for reporting that income and for paying any provincial/federal taxes on the sale?

In Canada, an individual can sell as a "small supplier" up to $30,000 worth of goods/services per year without either collecting or submitting sales taxes. (Of course, that individual also cannot claim a refund on "inputs" purchased for resale either.)

So how does all this tax stuff work for me, as a Canadian or even if I lived in Lapland, selling photos through Zenfolio worldwide? This is an avocation for me - a hobby - not a business. I'm a retired guy on a pension. Of course, I'm probably just dreaming about selling even one print but what if I turn out to be another Joe McNally and have orders totalling $25,000 in 2010?

Thanks for your reply.

Richard

For all photographers located outside of the US it is up to you to report your earnings to your local tax authority. We do not require any tax information from you in this case.

 Thanks, Laura.