James D. Oates, CPA
The Accounting Department for YOUR Business
Cash ManagementTax ReturnsPayroll Accounting
(905) 628-1347       info@jamesdoatescma.ca
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HST (HARMONIZED SALES TAX)
We will ensure that the HST return is filed on a timely basis.

Basically, the HST system works as follows:

Your business charges HST on the invoices to your customers. This is referred to as "HST Collected."
The suppliers of the goods and services to your business will, if registered, charge your company HST. This is referred to as "Input Tax Credits."

The HST returns works as follows:
 
Total Sales during the period $xx,xxx.xx
HST Collected $ x,xxx.xx Charged to your customers
MINUS
HST Input Tax Credits $ y,yyy.yy Charged by your suppliers
Balance $ z,zzz.zz

If the "HST Collected" is more than the "Input Tax Credits", the company files a return and makes a payment in the amount of the "Balance" to CRA.

If the "Input Tax Credits" are bigger than the "HST collected", the company files a return and CRA will issue a cheque in the amount of the "Balance."

The key to the timeliness and completeness of the return is ensuring that the bookkeeping is current and complete.

We recommend that even if your business is below the $30,000 threshold to register for HST.  Expenses like Rent, Office Supplies and Utilities have an HST component to them.  By registering, you are able to recover the HST you are charged against HST you charge your customers. 

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F or a free, no obligation consultation as to how our services could benefit your business, contact us at (905) 628-1347 or by e-mail