HST question, I know it's getting boring...

[bighillbargains1]

I'm pretty sure Pierre can answer this...

Since I have to remit HST for sales to HST registered provinces I was just wondering how those provinces will receive their cut. HST is a combination of GST and PST and I beleive the PST part should go to the provinces.
But when you file the GST/HST return with Canada Revenue Agency you only enter a net tax amount for GST and HST combined. So is the total amount going to our Governement in Ottawa?
It just doesn't seem right.

I appreciate your time.

[surplusdealdude]

Ottawa get it all and then remits the PST portion to the respective provinces.

We can all trust Ottawa to do the right thing, of course.]:)

[momoftwingles2]

🙂

Yes, but how does Ottawa KNOW which province is suppose to get the PST portion of the HST? I've never understood that either.

Susan

[fatdane]

There is some sort of formula on what part of the payments go to Ottawa and what part goes to a Province. There is no tracking of individual payments as to who gets what.

[surplusdealdude]

Yes, but how does Ottawa KNOW which province is suppose to get the PST portion of the HST? I've never understood that either.

Susan

Harper uses magic.;-)

No, it's really quite simple. The home province gets the portion that can be proved to be theirs and Harper keeps the rest.:^O

[bighillbargains1]

No, it's really quite simple. The home province gets the portion that can be proved to be theirs and Harper keeps the rest.:^O

It's not that simple! I don't have to disclose how much HST I collected from Sales to Ontario or to B.C. or to any other province. Since I'm in Alberta they have no way of knowing who gets what...
I guess Ottawa has some kind of magic formula... like they have for many things. ?:|

[fatdane]

The problem is that we as small scale sellers are attempting to understand something designed by civil servants to be incomprehensible. If you get a customer questioning how the HST collected by an Ontario seller gets to BC on a sale to a BC customer refer that person to the CRA and/or their MP or MPP. Nothing that we as sellers can say will make a buyer unhappy about paying the tax happy - let the politicians and civil servants waste their time so that we can get back to running a business to generate enough taxes to pay for their gold plated perks and benefits.

[pierrelebel]

'" don't have to disclose how much HST I collected "

Yes you do.

You must remit the correct amount of taxes (GST and HST) based on the total amount that was due (whether you charge it or not). You then deduct your ITCs and remit the difference (or claim a refund if appropriate).

When audited, the tax auditor will go invoice by invoice (I know, been there, done that) to determine the taxability of each sale and then the appropriate rate of tax.

In addition, the law clearly specifies you must indicate the proper amount of GST or HST payable by the buyer on every invoice sent to buyers, together with your GST/HST number. And you should keep a copy of every invoice. If you do not, you are inviting the tax auditor to estimate the amount for you and you will not like the estimation. You then have to go to court to prove the amount is wrong. Not worth it.

For more information about GST/HST invoicing requirements, please take a look at this http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/bspsbch/itc-cti/nvc-eng.html

[bighillbargains1]

That's not how I meant it.

What I was saying is, on the GST form you don't seperate the GST from the HST, I only have to fill in one amount for both taxes combined. (Maybe this is an Alberta thing...) Canada Revenue has no way of knowing how much of that total amount was actually collected as GST and how much was HST.

My books are perfectly in order, every sale is listed with either GST or HST or no taxes etc.

Fatdane, thank you for your answer in post 6, that's exactly what I was looking for. 😄

[surplusdealdude]

Nothing that we as sellers can say will make a buyer unhappy about paying the tax happy

Perhaps, in addition to inserting our HST number, we should include the number to the Minister of Revue's office and label it the "HST complaint line".