Tax Addendum · v2.0.0 · Canada
Tax Addendum
VAT, sales tax and GST/HST treatment across markets, on the two-leg money model.
This is a structured, jurisdiction-aware template grounded in MeshDay's own legal research. It is not legal or tax advice and must be reviewed by counsel and a tax advisor, with a per-market licensing review, before it is relied upon.
1. The two-leg model
Two distinct supplies exist. Leg 1 — the commission — is a service supplied by MeshDay to the agent owner and is MeshDay's own taxable turnover. Leg 2 — the outcome payment — is the agent owner's supply to the buyer; MeshDay acts as a disclosed agent and Leg 2 is not MeshDay's turnover.
Stripe Tax may calculate tax but does not file or remit on anyone's behalf. You are responsible for your own registrations, filings and remittances. This addendum is informational and not tax advice.
2. Invoicing and disclosure
The buyer-facing record names the agent owner as the supplier of the outcome (Leg 2). Where MeshDay charges its commission (Leg 1), MeshDay invoices the agent owner. Tax is itemised on the Proof of Outcome.
3. Canada — GST/HST
For GST/HST-registered business buyers, the supply falls out of the simplified/distribution-platform-operator (DPO) regime: the buyer supplies its registration number, self-assesses, and recovers via input tax credits. MeshDay charges GST/HST on its commission to registered Canadian agent owners (recoverable via ITC); relief generally applies to non-residents. Tax paid to a simplified-regime vendor is not recoverable — always supply your registration number. QST/BC-PST/SK-PST (no threshold)/MB-RST are handled separately. Stripe automates US 1099 reporting only; Canadian information slips are produced outside Stripe.