Some charities that are registered to charge GST/HST qualify to file under the general method, where they can claim 100% input tax credits rather than partial rebates. You will find details on the CRA website.
Posts Tagged ‘GST/HST’
Some charities can file under the general method and claim 100% input tax credits
Friday, March 30th, 2012GST/HST questions can be answered at the CRA Rulings Hotline
Thursday, March 15th, 2012Do you have a question about GST/HST? Contact the GST/HST Rulings Hotline at 1-800-952-8987 to speak to an officer.
Charities registered to charge GST/HST must file under Charities Method
Thursday, March 1st, 2012Registered charities that are registered to charge GST/HST are expected to file their returns using the charities method. Under this method, charities keep 40% of GST/HST charged (and remit the other 60%), and receive a partial rebate of GST/HST paid.
Been Audited? File an Appeal if You Have Concerns
Thursday, February 23rd, 2012If you have been audited by the CRA for GST/HST (or any other tax), you will be given a time limit within which you can file an appeal. If you have concerns, file the appeal! You can always withdraw it. Better not to miss the deadline.
Why is my budget different from my cashflow?
Tuesday, February 21st, 2012A budget captures revenues and expenses that “belong” to a certain year. A cashflow shows money flowing into and out of your bank account.
Most revenues are received, and most expenses are spent, during the year to which they belong. However, in the early days of this year, you might still be collecting some of last year’s money (e.g. grant holdbacks and other receivables), and paying some of last year’s bills. In the later days of this year, you might start to receive or spend money in preparation for next season. And you’ll probably find that some of this year’s transactions just can’t be settled till the early days of next year.
Besides these timing issues, cashflow involves tax transactions that are not part of your revenues and expenses. For instance, everywhere in Canada we pay GST or HST (depending on your province) on the purchase of goods and services. Cash flows out to pay the sales tax – but for most organizations it’s partly or fully recoverable. Only the non-recoverable part is an expense.
The budget document doesn’t care about the timing of cash payments: it is based on the idea of accrual accounting, where revenues and expenses are “accrued” to the year where they belong, and the actual exchange of money might happen either earlier or later.
The cashflow document is all about the timing of cash, without respect to which year various things belong.
Generally, Charities do not Charge GST/HST on Services
Tuesday, February 14th, 2012The general rule is that charities do not charge GST/HST on services. Thus – no GST/HST on room rentals, advertising sales and professional development events. GST/HST does apply to admissions to places of entertainment.
Claim GST/HST Rebates and Input Tax Credits up to 4 Years from Purchase
Friday, February 10th, 2012You can claim GST/HST rebates and input tax credits up to four years from the date of purchase. So, in 2011, you can claim on items back to 2008.
Questions About GST/HST? Consider Getting a CRA Ruling.
Thursday, February 2nd, 2012Staff Post
By Jerry Smith
Have you ever cursed sales tax calculations, or even worried whether a calculation mattered? Have you ever played sales tax roulette – called the help desk at CRA multiple times with the same question until you got an answer you liked?
First, whatever anyone tells you over the phone is – just an opinion! This was confirmed recently when Young Associates hosted two guests from the Canada Revenue Agency GST/HST Rulings Directorate.
If you want a definitive answer, you need a ruling – an official answer that is binding on the CRA, and that responds to the specifics of your situation.
To get a ruling, submit your query in writing. Follow up to determine when it is assigned to an officer. Follow through with the officer; anything they say on the phone as guidance is solid . . . but wait until you get it in writing. Then it is a ruling.
P.S. While the CRA search engine is thorough and massively detailed, don’t be afraid to try user-friendly Google searches, or speak to any officer at the Rulings Hotline, 1-800-959-8287.
GST/HST Rebates Depend on the Type of Organization
Thursday, February 2nd, 2012Charities and other public service bodies such as municipalities and school authorities are entitled to a partial rebate of GST/HST paid on purchases. The rebate rate depends on the type of organization. See this document on the CRA website for details.
Small Supplier Tests Dictate Whether a Charity Needs to Register for GST/HST
Friday, January 13th, 2012Charities that are small suppliers do not need to register for GST/HST. There are two small supplier tests; you only need to meet one. A) Your total revenue is below $250,000, or B) Your taxable sales are below $50,000.
Which Provinces Have HST?
Thursday, December 29th, 2011As of 2011, HST is charged in Nova Scotia, New Brunswick, Newfoundland & Labrador, Ontario and British Columbia. All other provinces and territories charge GST (and, in some cases, a provincial sales tax too).
Which GST/HST Rules Apply to Your Org.?
Friday, December 16th, 2011Different GST/HST rules apply to commercial business, charities, not-for-profit organizations and municipalities. Check the CRA website for the guide applicable to your organization.
Charge GST/HST Only if Registered
Thursday, December 8th, 2011You only charge GST/HST if you are registered to do so. If you’re not sure, contact the Canada Revenue Agency Business Window at 1-800-959-5525.