Will your business be filing HST this year? Here are some tips on how to file correctly and avoid any potential hassle from the CRA.

Maintain proper documentation

Ensure that you are maintaining appropriate documentation for all HST-related items that you plan to claim on your taxes. ITC and ITR items can be deducted and lower the amount in overall taxes that you pay. However, you must have a “paper trail” of sorts to provide adequate information about the deductions you are making. Providing documentation helps to ensure that your deductions will be approved and that you can indeed take the appropriate amounts off of your business’s overall income based on your business expenses.

Understand registration requirements

Understand the requirements to register for HST status within Canada. You will have to register as HST as if you want to sell any supplies that are taxable throughout the country of Canada. HST registration can help you avoid issues with the government when it comes time to file taxes as you are in compliance with the laws set in place for 2018 and beyond.

Report intercompany transactions

If you are making intercompany transactions you are still required to report these as changes on your HST forms when you go to file for taxes. Be sure to follow these rules as sometimes intercompany transactions can disrupt the cash flow your business has on hand and can alter the amount you owe in taxes.

Business owners should note that, starting in spring 2018, how often you receive your GST34-2 (Goods and Services Tax / Harmonised Sales Tax Return for Registrants, and what you get with it has changed. For more information on HST changes that may affect your business, refer to the Government of Canada’s website.

E&E Professional Accountants has years of experience in assisting businesses with their accounting needs. We are founded and managed by an experienced corporate auditor and a former CRA tax auditor. Feel free to contact us for assistance with all your accounting and bookkeeping needs.