Entrepreneurship & Small Business

Taxation - answering any questions here

  • Last Updated:
  • Jan 11th, 2019 10:57 am
[OP]
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Oct 30, 2017
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Ottawa, Ontario
fairbairn wrote:
Jan 8th, 2019 12:40 pm
Thanks for the response Philip. I am selling goods that are zero-rated and shipping within Canada only. Does the $30,000 mean sales to customers in Quebec or worldwide? I plan on registering gst/hst and pst but not sure if required for the others.
$30000 is all the sales. if you are selling zero rated, it will be a good idea to have your GST account because you can get a refund for the gst you paid.
thank you very much
Philip Kwok, CPA, CGA
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can small business buy a vehicle for use as delivery vehicle be written off as business expense? or is it capital depreciation? what form to use and how to go about it? also, can the vehicle be bought new or used?
[OP]
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divx wrote:
Jan 9th, 2019 1:26 am
can small business buy a vehicle for use as delivery vehicle be written off as business expense? or is it capital depreciation? what form to use and how to go about it? also, can the vehicle be bought new or used?
yes, it is a capital asset, and can write off in a couple of years. about 5-6 years normally. new or used doesn't matter. also, there is a price max. to be $30000 plus tax, cannot be higher than this amount
thank you very much
Philip Kwok, CPA, CGA
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Nov 22, 2016
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We report our USD sales and USD HST collected/paid using the monthly average CAD rate as we do HST quarterly reporting throughout the year.

However, at the end of the year we want to use the annual average rate for the year for corporate financial statement filing. I know we make a simple adjustment to sales in the fourth quarter to reflect the change in rate, but what do we do about the HST/GST we have claimed throughout the year using monthly averages?

Thanks,

Michael
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Michael4357 wrote:
Jan 10th, 2019 10:09 am
We report our USD sales and USD HST collected/paid using the monthly average CAD rate as we do HST quarterly reporting throughout the year.

However, at the end of the year we want to use the annual average rate for the year for corporate financial statement filing. I know we make a simple adjustment to sales in the fourth quarter to reflect the change in rate, but what do we do about the HST/GST we have claimed throughout the year using monthly averages?

Thanks,

Michael
I don't think is a good idea to change method during the year, CRA always match your HST return sales to your annually financial statement sales. therefore, you should file your annually financial following the same method.
thank you very much
Philip Kwok, CPA, CGA
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Nov 22, 2016
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Hi Philip,

So anyone that reports quarterly HST can not use the annual average rate for USD sales? I thought we could simply make an adjustment in fourth quarter reported HST sales, then the numbers would match up fine and CRA would see no descrepancy. We have always used the annual average rate for USD but this year we are required to do quarterly returns. So now our only option for USD sales you believe is using monthly averages?
[OP]
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Oct 30, 2017
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Michael4357 wrote:
Jan 10th, 2019 10:28 pm
Hi Philip,

So anyone that reports quarterly HST can not use the annual average rate for USD sales? I thought we could simply make an adjustment in fourth quarter reported HST sales, then the numbers would match up fine and CRA would see no descrepancy. We have always used the annual average rate for USD but this year we are required to do quarterly returns. So now our only option for USD sales you believe is using monthly averages?
I am just saying not to change calculation method between HST and financial report, if you use annual rate for HST, then use annual rate for T2. so for the first 3 quatar, the sales you report for hst should match the T2 total of sales for the same period, then if last quatar you change the rate, it should match the T2 total sales as well.
thank you very much
Philip Kwok, CPA, CGA
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Nov 22, 2016
26 posts
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PhilipK796978 wrote:
Jan 11th, 2019 9:19 am
I am just saying not to change calculation method between HST and financial report, if you use annual rate for HST, then use annual rate for T2. so for the first 3 quatar, the sales you report for hst should match the T2 total of sales for the same period, then if last quatar you change the rate, it should match the T2 total sales as well.
So what are my options? Is it monthly usd average rate, monthly usd average rate for 9 months, then annual rate for 3 months, or finally just use the annual rate? We have always simply used the annual rate but this year having to report HST quarterly instead of annually has made that a lot more confusing as we cant use the annual rate for the first 9 months as it is obviously not available.
[OP]
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Oct 30, 2017
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Michael4357 wrote:
Jan 11th, 2019 10:52 am
So what are my options? Is it monthly usd average rate, monthly usd average rate for 9 months, then annual rate for 3 months, or finally just use the annual rate? We have always simply used the annual rate but this year having to report HST quarterly instead of annually has made that a lot more confusing as we cant use the annual rate for the first 9 months as it is obviously not available.
use the last 3 months average rate for the last period. it will make it the same method as the previous 3 you reported
thank you very much
Philip Kwok, CPA, CGA

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