Why do some photographers charge tax when others don’t?
This is a good question. I doubt most people realize why some photographers charge tax and why some don’t.
In Canada if you have a small business you must charge HST on all revenues over $30,000 per year.
If your small business is a side-hustle and you make a few thousand dollars per year that’s great. You must claim all income on your income tax return. However, you don’t have to collect the harmonized sales tax for the government. It’s considered ‘not worth it’ for them. Therefore, your prices are not ‘plus tax’.
From the business owner’s point of view here is the problem with this. Most people want to pay as little as possible. But they want the best possible product. In this case the best headshot. If you are a side-hustle business you’re likely not as experienced as the headshot photographer that does this full time. That’s the downside. If you want a pro you’ll probably have to pay tax. Seems weird doesn’t it?
If a photographer says taxes are included they are treading on slippery ground. You’re not allowed to imply that you’re paying tax inside of your price for your service when you are not. You could say your price includes any ‘applicable’ taxes though. This usually answers the question, is that plus tax without being dis-honest?
Most people don’t like to pay more tax than they have to. When they are charging the HST with services, it means you’re likely dealing with a professional. They likely earn most of or 100% of their income from photography. What does this mean to you? It often means that you’re hiring a pro or someone who does a lot of photography and likely knows their craft well.
However, just because they charge HST doesn’t mean that the guy starting out won’t do good work. Everyone starts somewhere. Some of my mentors don’t charge tax. However, in terms of full disclosure… this is the reason some photographers charge tax and others don’t.
