How Commission Tax Works
This page explains, in plain terms, how tax is applied to your commission payouts. It’s the partner-friendly companion to Tax & Invoicing — for the specific forms and the jurisdiction summary, start there.
SIPSTACK self-bills you (RCTI)
Section titled “SIPSTACK self-bills you (RCTI)”SIPSTACK is the merchant of record for the underlying sale, and your commission is payment for a distinct referral and account-management service. For registered Canadian partners, SIPSTACK uses a self-billing arrangement: instead of you sending SIPSTACK an invoice, SIPSTACK issues a Recipient-Created Tax Invoice (RCTI) on your behalf for each period’s commissions. The RCTI is your tax record for that period.
This is a standard CRA-permitted arrangement (Excise Tax Act s.169 / CRA P-182R). You don’t have to generate your own invoices for the commissions.
Registered Canadian partners — HST is added and you remit it
Section titled “Registered Canadian partners — HST is added and you remit it”If you are registered for GST/HST, SIPSTACK adds HST on top of your commission at SIPSTACK’s province rate — Ontario 13% (the recipient’s rate applies under a self-billing arrangement, regardless of your own province). Worked example for a $200 commission:
| Line | Amount |
|---|---|
| Commission | $200.00 |
| HST (13%) | $26.00 |
| Total you receive | $226.00 |
The $26 HST is yours to remit to the CRA — it’s collected on your behalf and passed through to you, and you account for it on your GST/HST return like any other tax you charge. The RCTI shows the commission, the rate, and the tax so your bookkeeping is straightforward.
To make sure you’re treated as registered, fill in your GST/HST number and set your registration status on Settings → Tax.
Small-supplier / not registered — paid pre-tax
Section titled “Small-supplier / not registered — paid pre-tax”If you are not registered for GST/HST (for example, a small supplier under the CRA threshold), your commission is paid pre-tax — no HST is added, and no RCTI gross-up applies. You receive the commission amount as-is. If you register later, set your effective registration date in Settings → Tax so commissions from that date forward are handled correctly.
Non-resident / outside Canada
Section titled “Non-resident / outside Canada”If you are a non-resident partner (for example, a US-based referral partner), the commission is not a taxable Canadian supply, so no Canadian GST/HST is added. How the income is taxed is governed by your own jurisdiction’s rules — consult your local accountant. SIPSTACK does not withhold or add Canadian tax on non-resident commissions.
Where to look
Section titled “Where to look”- The RCTI is the authoritative tax document for each period (registered CA partners). It’s generated automatically.
- Monthly statements summarize what was paid and are for reference.
- Settings → Tax is where your registration details live and where the tax summary PDF download lives.
Related: Tax & Invoicing, Settings → Tax Registration, Statements.