Selling Your Art: When Artists Need to Charge GST/HST on Sales — CPA Firm Near You, Montreal

Introduction

Artists in Quebec who sell paintings, prints, sculptures, digital art, or handmade creations often overlook their sales tax obligations. Whether selling through galleries, Etsy, Instagram, art fairs, festivals, or private commissions, artists may be required to charge GST and QST once they exceed the small-supplier threshold. Failing to charge tax can lead to reassessments, penalties, and unexpected tax bills. This guide explains when artists must register for GST/HST, how to collect and remit tax on art sales, and how a CPA firm near you in Montreal can help ensure full compliance.

Legal and Regulatory Framework

Under the Excise Tax Act and the Taxation Act of Quebec, a self-employed artist must register for GST and QST when taxable revenues exceed $30,000 in any 4 consecutive quarters.

Taxable supplies include:
• Original artwork sales
• Digital downloads of artwork
• Limited-edition prints
• Commissions and custom work
• Art sold through galleries or online platforms
• Art teaching or workshops (unless exempt under very specific rules)

A registered artist must:
• Charge GST and QST on taxable sales
• File periodic GST/QST returns
• Track input tax credits (ITCs and ITRs) on expenses
• Include sales from all platforms when calculating the threshold

Selling through galleries does not remove your tax obligations — you remain responsible for GST/QST on your portion of the sales.

Key Court Decisions

Courts have ruled that:
• Artists must charge GST/QST even if they consider their work a “hobby” — once the threshold is exceeded, registration is mandatory
• Gallery commissions do not exempt artists from collecting GST/QST
• Improperly collected tax must be remitted, even if the artist failed to charge it
• Digital artwork and downloads are taxable supplies under GST rules
• Expenses related to producing artwork require proper documentation to qualify for ITCs/ITRs

Judges consistently emphasize accurate invoicing and proper registration.

Why CRA and Revenu Québec Target Artists Who Sell Art

Artists face audits because:
• Many sell through multiple platforms without tracking full revenue
• Art fairs and pop-up events often involve cash sales
• Digital art sales through platforms like Etsy or Gumroad may be unreported
• Artists forget to register once surpassing $30,000
• GST/QST is sometimes collected but not remitted
• Sales records are incomplete or informal

Auditors compare bank deposits, gallery statements, online platform payouts, and art fair records.

Mackisen Strategy

At Mackisen CPA Montreal, we help artists build tax-compliant systems for selling artwork. We:
• Monitor your GST/QST threshold
• Set up registration as soon as required
• Ensure GST/QST is charged correctly across all platforms
• Track input tax credits on materials, supplies, travel, and studio costs
• Prepare periodic GST/QST returns
• Reconcile gallery statement income with actual payouts
• Build audit-ready documentation for CRA and RQ
• Support digital artists selling internationally

Real Client Experience

A Montreal painter exceeded $30,000 through gallery sales and Etsy without registering for GST/QST. Revenu Québec assessed backdated tax plus penalties. We reconstructed sales records, registered the artist retroactively, and negotiated a reduced reassessment. Another digital artist failed to charge tax on commissioned work; we updated invoicing systems and ensured correct ITC tracking.

Common Questions

Do I need to register for GST/QST if I sell only through galleries?

Yes. You must charge GST/QST on your portion of the sale once the threshold is exceeded.

Are digital art downloads taxable?

Yes. Digital products are taxable supplies.

Can I claim ITCs/ITRs as an artist?

Yes, once registered. This can refund GST/QST paid on materials, supplies, studio rent, framing, and equipment.

How do I track sales from multiple platforms?

By consolidating gallery statements, Etsy payouts, direct sales, and commissions into a single record-keeping system.

Why Mackisen

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps artists sell their work confidently and compliantly. Whether selling at galleries, festivals, or online, our expert team ensures precision, transparency, and full audit protection.