Reminder to GST/HST registered sellers

[pierrelebel]

This is the time of the year when Revenue Canada (CRA) mails the 2008 GST/HST return for sellers with a December 31 yearend and who file once a year.

Most sellers know how to calculate their sales and GST/HST payable but, for those who are unfamiliar, please note:

Total Sales and other revenue (line 101) includes all sales to HST provinces and to GST provinces and territories and outside Canada.

Total of GST/HST collected or collectible (line 103) includes 13% HST on your 2008 sales to NB, NS and NL (whether you charged it or not) and 5% on your sales to the other provinces and territories (whether you charged it or not).

Many sellers mistakenly assume:
1) exports are not included in 101 (wrong)
2) HST does not apply if they live outside NB, NS and NL (wrong again)

Hopefully your ITCs (line 108) will exceed your GST/HST due (line 105) resulting in a refund! ;-) .

[momoftwingles2]

Hi Pierre,

The first year that I registered my business, became GST and PST registered and with all the other papers needed, I was audited after submitting my 3rd quarterly GST report. The agent came to my home as that is my place of business. I had everything ready for her that she had requested.

I had included all of my outside of Canada sales so it through my returns into the questionable stream. Once the person saw ALL of my sales...she said DO NOT include your exported sales on the GST form.

I had a hard copy of EVERY sale within Canada..by date, EVERY sale to the States..by date and EVERY other international sale..by date. I also had an Excel sheet that broke the Canadian sales into provinces and by date. You name it...I had it.

She said that they would document my GST number so that it does not come up questionable again since the majority of my sales are outside of Canada.

That was 5 or so years ago and I've never had any trouble with NOT including my outside of Canada sales.

I wonder if it matters as to who the auditor is and that is why different people receive different answers?

Susan
momoftwingles2

[whoscloset]

I do mine monthly. It's nice to get a cheque from the government every month. 😉

[fatdane]

The Revenue pointy heads may make a note on your file re exports or sales at an antique mall where the store collects and remits the GST/HST but a return may still be delayed while they get around to waking up and reading their own notes. In one period I had 5 of 9 returns delayed account they had to pay me money - more ITS's than tax collected, and the computers were obviously set to send anything to audit where the Government had to pay out. It was taking 2 months for the GST return to travel from the filing office in Winnipeg to a local office in London, ON before someone would actually check the file and see that most of my sales were either zero rated or sales at an antique mall - and they wondered why I was a little cranky when I complained about the delay.

[coxengines]

We file all our returns on-line, in the first few days of the month and, every month, we get a nice cheque from CRA within 2-3 weeks.

They are surprisingly quick with refunds except, once a year or so, we receive a call for a "review" instead of a cheque.:-D

Xena

[fedant]

Had a "random" GST audit...they said it was flagged for audit due to the high $ check that they had to keep sending me for a refund....Once they realized that I was selling mainly outside of Canada, they said they would tag it to make sure it wouldn't happen again.

They had with held my check the previous year, pending an audit, but they held it so long that it passed the tiem they could legally keep it.....So, they sent tahtrefudn check to me, as they got to the point that they were literally holding it illegally....My file was sitting on some guys desk for several months.

The guy still managed to find 'missed' GST, and I was charged $250 or so....probably cost the government over $5000 in expenses & wages for the audit. To this day I still can not figure out from his paperwork where he 'found' all that missing GST....just paid it and didn't make waves.

And, Pierre, this guy told me I did not have to charge HST to those buyers....So, I think the answer will change with whoever you ask. I know that is what the original old GST/HST info pamphlets said, on the first page, but I have yet been able to find any recent booklets with that same info.

[pierrelebel]

"this guy told me I did not have to charge HST to those buyers...."

That idiot (no other word comes to mind) was wrong. The law is clear. .

[fatdane]

It is important to remember that the tax auditor that audits your return is not God, and can make mistakes, not know the regulations, and/or misinterpret the regulations. Don't get into a shouting match them, but of you think they are wrong you or misinterpreting something ask them to please double check, and if necessary tell them you wish to speak to his or her supervisor about the matter. If they still come up with a number that you think is incorrect there is an appeal process that can be followed.

At one point when one called the "helpful" GST telephoen line the person that answers the calls could pass one on to the auditor, but this seems to be no longer possible, and one has to wait for the auditor to get to the return - a painfully slow process

[whatnerds]

I do the accounting for my business and my dads gastation, I do it monthly makes life easier and out of the way.

I have my website automatically tracking my accounting all it does it creates my excel file, download included all my expenses into the sheet, print off I go. Thats for my business.

My dads, i have to input all this day to day reports manually but it only takes me 30 min.

Never once had a problem, with no one coming to my door. Thanks.

Sukh
(Dream About Comics)

[fedant]

icomic-ca: The GST office does random audits, just the luck of the draw, and they also flag non-typical GST returns, like large refunds, which is why I got audited.

fatdane: For the $200-odd $ payment I had to make, it was not worth spending all that time dealing with trying to get any extra back.....and possibly causing my file to be flagged again for some more government harrassment. You do not want to irritate the auditors... despite the fact that they are supposed to be impartial & unbiased, they are still human, and human nature being what it is, can not always be unbiased. I figured even if he did take more than what they were went entitled to, it was goign to cost me more time (and thus more $) to deal with it. Best to write it off as a life experience and be done with it. No need to loose more $.