GST - The Nuts & Bolts
For all GST registrants, both quick & long methods:
- List all GST taxable revenues
- List all Non-GST taxable revenues
- List all GST that you charged
- Bring copies of all the GST returns that you filed (Quarterly filers only!)
- Bring a list of payments to and refunds from GST
(not including the personal rebate cheques)
For Quick Method Registrants:
- List your new assets with the GST noted and factored out
For Long Method Registrants: (Do this and save yourself $50!!)
- Also total your expenses for each category excluding GST (factor it out!)
- And total your GST for each category of expenses
- And bring to your appointment all three lists of totals
- Grand Total for each category
- GST Total for each category
- Net Total (expenses without GST) for each category
- NOTE: It is this Net Total that we need for the preparation of your tax return
There are some useful formulas you can use to help you pull the GST out of a bill when the actual amount of GST is not stated. The formula depends on how much provincial tax is levied.
For Example:
| Cab | NO PST | $10.00 x 5 ÷ 105 | GST = $0.48 |
|---|---|---|---|
| Copying | PST & GST | $21.00 x 5 ÷ 113 | GST = $0.93 |
| Bar Tab | PST (10%) & GST | $17.00 x 5 ÷ 115 | GST = $0.88 |
What a pain in the ass it all is! The only saving grace is that most of us probably save more per hour of doing our GST than we earn anywhere else!
Please note these historical percentages when preparing your GST return:
| Historical Percentages | GST Rate | Quick Method Calculation |
|---|---|---|
| 1991 - June 30, 2006 | 7% | 5% |
| 1991 - June 30, 2006 - Dec 31, 2007 | 6% | 4.3% |
| Jan 2008 - Present | 5% | 3.6% |
Return to: Previous GST Page
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