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HST Filings

Discussion in 'Starting a Trucking Business' started by youngtea, Mar 30, 2016.

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  1. Michael Ludwig

    Michael Ludwig Well-Known Member

    ... but it's still damned funny ... LOL
     
    martinetav likes this.
  2. martinetav

    martinetav Well-Known Member

    that belongs to Harper...
     
  3. htcollections

    htcollections Suspended Member

    I think we are talking the same thing here...the point is , tax should not be collected if deemed as an interline transport.
     
  4. Rob

    Rob Site Supporter

    Sure sounds confusing. Glad my dispatch system does it for me.
     
    DIETCOKE likes this.
  5. SCAM CHASER

    SCAM CHASER Site Supporter

    "it is not lawful to charge GST" is an erroneous statement - you charge it but at zero-rate. I know the booklet I provided the link to is 18 pages long, but it contains all the correct answers.
     
  6. MarkD

    MarkD Site Supporter

    So am I to understand the 5-14% in federal and provincial taxes the poster of this thread is charging his customers is in fact not his tip for having a phone connected and an email address and in fact he needs to remit those funds to the government? That's outlandish! Thanks Trudeau.
     
  7. MarkD

    MarkD Site Supporter

     
  8. SCAM CHASER

    SCAM CHASER Site Supporter

    I guess I will put my two cents worth in. Several posters have used the term "unlawful" . This is my understanding, subject to any other posters' input:

    [1] Everything you invoice to your customers attracts HST/GST.

    [2] As previously stated, the rate is determined by the provincial HST/GST rate of the province into where the freight is being delivered

    [3] Cross border shipments are zero-rated, not exempt. The revenue from your cross-border shipments must be included in your reported sales. If billed in USD, use the Bank of Canada exchange rate for the last day of the month.

    [4] Payments between transportation companies (including carriers, load brokers, 3PLs) again are zero-rated, not exempt) This is what has been referred to as the interlining provisions of the legislation. The Government now clarifies "carrier" as a person who supplies freight transportation services, whether that person actually supplies the freight transportation service.

    Here's the link to the official government booklet on the subject - if you have not read it before, now's a good time to do so.

    http://www.cra-arc.gc.ca/E/pub/gp/rc4080/rc4080-13e.pdf
     
    Pharlap likes this.
  9. htcollections

    htcollections Suspended Member

    Madbooker. I would somewhat disagree. brokers are only responsible to collect GST if invoicing the end customer. ex a manufacturer, etc. But if the broker is billing another broker, carrier, etc, and this forms part of an interline transport move, it is not lawful to charge GST. Gst is also charged at the provincial rate, where the delivery is being made.
     
  10. MADBOOKER

    MADBOOKER Active Member

    And Yes, as a broker, you are responsible for collecting all GST-HST from your customers.
    NO carrier should be charging you any taxes on domestic shipments.
    Also the amount you pay will greatly depend on the lanes you service within Canada.
    I'm assuming that you don't do many cross Canada shipments with a total bill of 10 000 per year.
     
  11. htcollections

    htcollections Suspended Member

    Agree with Loaders.
     
    Last edited by a moderator: Mar 31, 2016
  12. loaders

    loaders Site Supporter

    Youngtea, also ensure that the HST amount you are charging your customer is based on the Provincial rate of the final destination, regardless of where your customer is domiciled. Each Province has a different rate, some a bit lower, some a bit higher.
     
    youngtea and htcollections like this.
  13. htcollections

    htcollections Suspended Member

    Northam. You can't possibly be sure of any calculation as he would also have various ITCs. The simple way to calculate HST owed is add up the totla HST received, minus the total HST you paid. You must ensure you have proper documentation for the Itcs and verify the HST numbers, which you can do online. Important to verify the company name, the date and the HST number. All must be accurate. Also, regarding business meals, you are only entitled to half the hst if business. There are also limitation on vehicle HST amounts.
     
  14. htcollections

    htcollections Suspended Member

    I know many carriers that never pay HST, as they interline. It is not legal to charge HST if you are inter lining, but you are still entitled to legitimate ITCs. As a broker, you should not be charging HST at all, if interlining. Refer to Canada Revenue Agency re. Interlining. for additional information.
     
  15. Northam

    Northam Member

    You might as well ask if it is typical for the corner variety store or local car dealership or....any business collects and pays HST. The amount is dependant on any number of factors, not the least of which is your total billing for intra-Canadian shipments. A ballpark guess based on your 10K bill with 1/2 of your billings being in Canada suggests a yearly revenue of around 200K.
     
    Last edited by a moderator: Mar 30, 2016
    chica123 likes this.
  16. youngtea

    youngtea Active Member

    Last year was my first full year and we were doing taxes yearly. We have now changed to quarterly.

    I am wondering if it's typical for a broker to be paying a lot of HST.

    Thanks for your help.
     
  17. AccountsReceivable@DRC

    AccountsReceivable@DRC Moderator Staff Member

    GST/HST payments are normally done on a monthly basis UNLESS your revenue is under a certain dollar amount and/or other arrangements have been made to remit yearly.

    You noted charging GST/HST to YOUR customers - assuming these are non transport customers - then you would have collected quite a bit of tax for an entire calendar year. Compared to previous years - is this $10K amount close to what you have previously remitted?

    If not - I would go back and review all of the GST/HST you have PAID throughout the year and make sure you have captured all tax paid out. It will be time consuming to do so - yes. Which is why remitting monthly might be something you should consider doing. Then if there are any inconsistencies in tax figures - you only need to review a month's worth of entries and not an entire year.
     
    chica123 likes this.
  18. youngtea

    youngtea Active Member

    I am doing my taxes for 2015 and I owe over $10,000 for HST last year.

    As you all know GST/HST is charged to the customer for all intra canada shipments if you are the final carrier. I'm a broker so none my carriers charge me taxes, but I charged my customers based on the tax regulations.

    Is it typically like this for brokers in terms of HST payments?
     

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