Being a content creator comes with its challenges. Balancing creativity with the business side of things can feel overwhelming. But nothing compares to the stress of finding out you might owe the Canada Revenue Agency (CRA) tens of thousands of dollars in sales tax. That’s exactly what one of our clients, a talented Canadian OnlyFans creator, faced when she was hit with the news: a potential $60,000 sales tax liability.
Thankfully, there’s a happy ending to this story. We helped her reduce her liability down to only $6,000, leaving her with only what was legitimately owed on Canadian sales. Here’s how we did it—and how you can avoid similar pitfalls as a digital entrepreneur.
Our client is a successful “spicy” content creator who earns her income from platforms like OnlyFans, Fansly, and ManyVids. Her work connects with fans from around the globe, but this broad audience created confusion when it came to tax compliance.
The CRA initially took the position that all of her worldwide sales were subject to HST (Harmonized Sales Tax), ignoring the fact that many of her customers lived outside of Canada. If this interpretation stood, she faced a $60,000 sales tax bill—an amount that could have been financially devastating.
To make matters worse, her previous accountant had given her inaccurate advice and failed to take action to address the CRA’s demands. The stress was piling up, and she was worried about her financial future.
The CRA’s assumption that all of the creator’s income was subject to HST stemmed from a lack of clarity about her sales data. For digital entrepreneurs, it’s crucial to understand that:
Unfortunately, the client’s previous accountant hadn’t taken the time to assess these distinctions, leaving her vulnerable to the CRA’s aggressive stance. Without accurate sales data to differentiate between Canadian and non-Canadian customers, she had no way to defend herself.
When the client came to us, we knew we needed a comprehensive strategy to resolve the issue. Here’s how we tackled it:
The first step was to figure out exactly where her sales were coming from. To do this, we worked closely with the CFO of OnlyFans to establish a secure and privacy-respecting process for accessing sales data.
This step was crucial because platforms like OnlyFans don’t automatically provide location-specific breakdowns of revenue. By carefully analyzing the data, we were able to identify Canadian versus non-Canadian sales accurately.
Once we had a clear picture of her sales distribution, we reviewed HST rules to confirm that non-Canadian sales were exempt from the tax. We ensured that our interpretation of the regulations aligned with the CRA’s guidelines, leaving no room for further disputes.
Armed with the correct data, we filed amended returns and communicated directly with the CRA on the client’s behalf. This included presenting clear evidence of the portion of sales that were Canadian and those that were not.
Our proactive approach and transparent communication made all the difference. The CRA was able to see the distinction, and we successfully reduced the client’s liability to only what she owed on Canadian sales.
By the end of this process, the client’s $60,000 sales tax liability was reduced dramatically to $6,000. She only had to pay HST on her Canadian sales, which represented a much smaller percentage of her overall income.
More importantly, she felt a huge sense of relief. With the financial stress behind her, she was free to focus on her business and her creative work.
Here’s what she had to say about the experience:
“Blueprint sets the gold standard. They guided me through a complex CRA audit, fighting tirelessly for over a year.
Their deep understanding of accounting and meticulous approach are exceptional. They patiently explain and address any questions, offering unmatched customer service and communication. Renee and Brian are true rock stars! I highly recommend this firm to anyone looking for accounting services.”
This case highlights several key takeaways that can help other OnlyFans creators, Fansly users, and ManyVids entrepreneurs avoid similar challenges:
This story is just one example of how we specialize in supporting digital entrepreneurs. Whether you’re an OnlyFans creator, a Fansly star, or a ManyVids icon, we understand the unique challenges you face—and we’re here to help.
Our proactive, client-focused approach ensures that you’re not only compliant with tax regulations but also positioned for long-term success.
Don’t let tax issues hold you back from growing your creative business. Contact us today for a consultation and discover how we can support you with expert tax and accounting services tailored to your needs.
Whether you’re dealing with the CRA or just getting started as a content creator, we’re here to make the business side of your work as smooth and stress-free as possible.
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