Personal Finance

Tax Filing Question - invoices?

  • Last Updated:
  • Mar 20th, 2017 7:05 pm
[OP]
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Dec 23, 2005
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Calgary

Tax Filing Question - invoices?

My friend was asked to do a small job for a company. After work completion, They asked him to send them an invoice for $1500 and put a comment the amount includes taxes.

He is asking how to file this amount and if he should get a T4 from the company. If needed, he is currently working in a casual job.

Can you please advise?
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3 replies
Deal Expert
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Jul 30, 2007
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report it under other income. T4 will not be issued by the company.
Deal Addict
Aug 19, 2013
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He need to include it as other income. You can't "include" income taxes in an invoice. It doesn't matter what you write on it. When people write includes taxes it is usually referring to hst/gst
Deal Addict
Dec 12, 2009
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Toronto
Momof3cuties wrote:
Mar 20th, 2017 5:23 pm
When people write includes taxes it is usually referring to hst/gst
And that tax amount needs to be filed with a separate HST return. Fully payable unless offset by Input Tax Credits (ITC's).

Someone can correct me on the amounts, but it used to be an invoice over$30 or $40 had to have an HST registration # on the invoice. If the original party that was invoiced is audited for HST and the HST # is not there, they will either deny the taxes claimed or audit the person writing the invoice. It is one of those red flag things for the HST guys.

The person writing the invoice has to register for HST if they are collecting taxes, indicating that taxes are included or if their gross revenue are over a certain amount (? $30K ?).

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