Get The HST* Out of Your Pocket
And Out of Your Hair!
*NOTE: Wherever you see HST we mean HST/GST
In 1991, GST was a new, regressive and ridiculously expensive tax. Little did we know that the original 7% GST would jump to 13% HST in 2010. Paying HST on everything from cab fare to false teeth is bad enough, worse is that freelancers build debt every time we earn a dime.
There are ways of making the HST process fairly painless both in the paying and in the reporting. Your tax preparer will be happy to suggest ways to minimize the administration, the debt and the frustration.
At Artbooks we prefer not to charge for assistance with HST preparation - just to tuck it in as part of the income tax service. Because of this we do not keep copies of your HST returns but simply hand you copies of the completed form for you to pop into the mail yourself and to keep a copy in your files.
The only exception is Long method HST registrants (CRA calls it the Regular method) who have not taken the time to pull the HST out of each of their revenues and expenses. We do charge to pull HST out of your numbers if you havent had a chance to do this: $50 for most years but in a year with a rate change in the middle of the year like 2006 and 2010, this is very difficult and time consuming and the fee is therefore $75.
When you come to your appointment, please bring:
- Your questions about registering for HST in this year
- Your HST number
- Your Method: Quick or Long/Regular
- Your filing status: annually or quarterly (& how many quarters filed this year so far) and bring copies of any HST reports filed so far this year
- If you are on the Long Method, whether you have factored HST out of your expense totals
- If you need to talk about HST in your appointment, make sure to mention this to your tax preparer
For HST non-registrants
If you are close to the thirty-mark, consider the concept of registering now. CRA is now scanning tax returns to see who bills more than $30,000 and then cross referencing them with HST registrants to make sure that everyone who should be registered is in fact out there doing their bit to collect HST taxes from the population at large. So be careful! Often when our income shoots up for the first time we are too busy to initiate anything so anxiety provoking as a new HST status. You are allowed to register for HST even if you dont make $30,000. Talk to your tax preparer about whether it might be advantageous to register especially now that its 13%.
More Information: Go to HST - The Nuts and Bolts
Download a printable copy: Get The HST Out of Your Pocket
(PDF version - Includes 'HST/GST Methods' & the HST Grid))
Download a printable copy: 'HST/GST Methods'
If you have Acrobat installed on your computer the application will open automatically, if you require Adobe Acrobat please visit www.adobe.com, download the free Acrobat Reader and then return to this page.
ARTBOOKS
720 Spadina Avenue, Suite 513
Toronto ON • M5S 2T9
Tel: 416-466-4435 • Fax: 416-466-3818
Email: artbooks@loosechange.ca