Frequently Asked Questions
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So what exactly is bartering with eXmerce?
Bartering with eXmerce is the exchange of goods and services without the use of cash. People have been doing it informally for thousands of years. Today, however, eXmerce has transformed bartering into a sophisticated business practice.
What does Revenue Canada think about barter?
Revenue Canada accepts barter as a legitimate method of payment. Revenue Canada recognizes eXmerce as a third party record keeper for barter transactions. Revenue Canada requires that all barter transactions be reported on your business returns. eXmerce will issue monthly statements to reflect these transactions. For accounting purposes, barter income should be treated like cash.
For more information about Revenue Canada and barter transactions, please refer to IT 490 Barter Transactions.
Are there tax advantages to eXmerce?
There are no tax advantages or disadvantages. eXmerce income is treated the same as cash income. It should be considered a marketing tool rather than a tax tool. Cash purchases that are normally tax deductible as business expenses are also tax deductible as trade purchases.
How is bartering through eXmerce better than direct bartering?
eXmerce eliminates the restrictions of one-on-one bartering in which each business must want what the other has to offer at the exact same time. An eXmerce broker works with you directly to bring your company new sales and increased market share, and to minimize cash outlay for everyday business expenses.
How will my business benefit from using eXmerce?
eXmerce is an innovative tool that can help your business conserve cash, generate new business, and turn excess, idle inventory into the products and services it needs to grow. The barter industry accounts for one quarter of the world's volume of business every year and is growing at a rate of 15% per year.
What does it cost to get started?
There is a one-time membership investment to establish your business account. Transaction and modest monthly fees cover accounting, marketing, promotions, and member services.
What if I need to make a purchase before I have earned enough eXmerce dollars?
Similar to a bank, we encourage businesses to apply for an eXmerce line of credit. If you qualify you can begin purchasing immediately. You can also use your eXmerce line of credit to enhance expansion or a new business venture when traditional funding is not available.
How should I price my product or service?
Prices quoted to eXmerce members are the same as prices quoted to cash-paying customers. eXmerce allows you to purchase products and services at your own cost of goods. Business owners are educated shoppers. eXmerce is simply another method of payment, just like cash or credit card.
For more information, download this informative PDF: How Bartering Can Instantly Increase Cash