Lifted, thanks for jumping in while I was gone AWOL!
I would generally recommend invoicing $2,000 + GST/HST. The expenses you incurred are inputs into your business. Therefore, to the extent GST/HST was payable on your inputs, you would be entitled to claim an ITC. The fact that you separate out an input for reimbursement does not mean that your client should not pay GST/HST on those separately identified charges.
Generally, you would not charge GST/HST on reimbursed expenses when you incur those expenses as agent for another person. I doubt you incurred the expense of going to Asia as agent for your client.
2. This will depend on your filing frequency. If you have less than $1.5 million in annual taxable supplies, you generally will be an annual GST/HST return filer. You may need to make instalment payments on a quarterly basis if your net tax (GST/HST Collected less ITCs) in the prior year was greater than $3,000.
You can file this return on your own. It doesn't need to be done by the accountant and it is relatively straightforward. The only information you need is: a) taxable revenues during the year, b) GST/HST collected during the year, and c) GST/HST paid during the year (i.e., ITCs claimed).
3. You will not need a separate bank account. Just ensure your accounting records are good and you can easily identify the GST/HST you collected and the GST/HST you paid.
4. If you complete the GST/HST return on your own, it won't increase your accountant's workload. I can't see the accountant's workload increasing significantly even if you don't complete the return on your own, so long as the accountant can easily determine the amount of GST/HST collected and GST/HST paid.
I'm not sure what this means...
If you're mailing prints to Alberta, you should charge 5% GST, as the supply is made where the property is delivered (AB).
I assume that your client is in Canada.Abel4Life wrote: ↑I am a sole prop. Let's say that I incur $2000 of travel expenses for a trip to Asia. None of it includes HST (as they were all incurred in Asia).
The client is going to reimburse for these expenses. I am also using the quick method so ITC implications.
When invoicing for these expenses, do I:
1) Just invoice for $2000 as a flat dollar reimburseable expense, in other words, no HST on top
2) Invoice for $2000 + HST (I wouldn't be surprised if the client paid the HST on this)
3) Something else?
Thanks!
I would generally recommend invoicing $2,000 + GST/HST. The expenses you incurred are inputs into your business. Therefore, to the extent GST/HST was payable on your inputs, you would be entitled to claim an ITC. The fact that you separate out an input for reimbursement does not mean that your client should not pay GST/HST on those separately identified charges.
Generally, you would not charge GST/HST on reimbursed expenses when you incur those expenses as agent for another person. I doubt you incurred the expense of going to Asia as agent for your client.
1. If you don't register for GST/HST and charge GST/HST to your patrons, you will lose money in the sense that you will not be entitled to claim input tax credits (ITCs) for GST/HST that you pay on your expenses.vermit25 wrote: ↑I can use some help/Advice.
1.
I have a new sole prop business, as of now I have not been charging HST.
I am still well below the 30k, But now I am selling products that I am paying HST for to my vendors, so if I don't charge HST I will lose money, Correct? (I know I can mark up my prices to include the HST, but that would make my prices seem higher)
2.
Once I register for a HST account, am I supposed to be paying the HST to CRA once a year or is it more often during the year?
Can I do this myself, or does my accountant have to do this?
3.
I am assuming that with a HST # I will also need a business bank account ? as of now Im using my personal bank acct (My business name is not my personal name)
4.
Does having a HST# make more work for my Accountant? Aka: Is my accountant going to charge me more than what he already charges me?
Thanks a lot!
2. This will depend on your filing frequency. If you have less than $1.5 million in annual taxable supplies, you generally will be an annual GST/HST return filer. You may need to make instalment payments on a quarterly basis if your net tax (GST/HST Collected less ITCs) in the prior year was greater than $3,000.
You can file this return on your own. It doesn't need to be done by the accountant and it is relatively straightforward. The only information you need is: a) taxable revenues during the year, b) GST/HST collected during the year, and c) GST/HST paid during the year (i.e., ITCs claimed).
3. You will not need a separate bank account. Just ensure your accounting records are good and you can easily identify the GST/HST you collected and the GST/HST you paid.
4. If you complete the GST/HST return on your own, it won't increase your accountant's workload. I can't see the accountant's workload increasing significantly even if you don't complete the return on your own, so long as the accountant can easily determine the amount of GST/HST collected and GST/HST paid.