Fast HST Return – It’s Quick – Part 1 Watch Video
Allan Madan, CPA, CA
In this article we are going to look at the Quick HST Return method of accounting Read More…
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CPA, CA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
i am employee of the government institute . i was annual filer and closed my business on 1 Jan 2012.Do i have to file HST.
Unless you are selling a service that is exempt from HST (e.g. medial services), then you still must file the annual HST return. After you have filed all past-due HST returns, you can call the CRA at 1-800-959-5525 to close your HST account. For more information, please contact me at amadan@madanca.com or Gurrai at gurrai@madanca.com
Hi Allan:
I just completed 2 US service jobs totaling about $300k. The productions went through my company, where, as instructed by the CRA, I charged the US client HST.. The productions took place in Toronto, all billings of labour and equipment were charged to my company. I then charged my US client my total billings + a service fee and HST on the total amount. My US client is asking if they can get the HST refunded since the use is for the US market and only the filming took place here.
I’d like to know your thoughts.
Hi Patrick,
The US client will not be able to claim an ITC for the HST paid on your service unless they are a GST registrant.
As a non-resident of Canada, they will not be required to be a GST registrant unless they are considered to be carrying on business in Canada and they are not a small supplier (make less than $30,000 in annual sales). They are considered to be carrying on business if they engaged in business activity regularly or continually in Canada, even if they did not have permanent establishment (i.e.: fixed place of business in Canada).
They will be able to recover GST/HST paid as GST registrants. Even if they are not required to register for GST/HST, they can choose to voluntarily register.
If they regularly transact in Canada, it makes sense for them to register simply to recover sales taxes paid in Canada. Obviously, once they register they will be required to collect GST/HST on all taxable sales in Canada. If they do perform services in Canada, they will also have corporate tax filing obligations to report Canadian sales. We cannot comment further without additional information.
If your client has specific questions regarding Canadian tax obligations, please request them to contact myself. We will do our best to assist them.
Hi
I love your videos and your tax information for small businesses.
I have a quick question, I registered for HST last year in June 2015. I’m getting ready to pay for my HST but I would like to use the quick method. I didn’t elect to use the quick method last year when I registered for HST (I had no idea i had too). Is it possible to still use the quick method for the HST that was collected last year? Or is it too late and I will have to wait until I elect?
Hi Tabby,
Thanks for the positive feedback! If your company is an annual GST/HST filer then it must elect for the quick method by no later than the 1st day of the second fiscal quarter (i.e. start of Q2). For example, assume that your company’s year end is December 31, 2015. For the Quick Method election to be valid for the 2015 tax year, it must have been filed by April 1, 2015. So you will have to wait until next year.
Hi sir i need gst/hst number for uber
Do you help me for that?
Hi Karandeep,
If your total gross income (before deductions) is $30,000 or more, then you need to register for and collect HST. To apply for an HST number, call 1-800-959-5525.
is meal costs GST, will be counted for ITC in quick method in a service company.
Hi Sajib,
You cannot claim ITCs on meals & entertainment expenditures if you are following the Quick Method of HST Collection.