Taxes in Canada - HST
Bruce_C49
Member Posts: 38
Wave has a very good report functionality for gathering and reporting information for HST reporting. Your Canadian invoices to customers with HST attached is entered as "HST Paid Payable." I advise Wave users to report their HST quarterly. A work-from-home service business with $175,000 in sales (all in Ontario) could have HST payable of $22,750.
The business owner with taxable inputs (ie supplies or services) would record the HST-ITCs as "HST Paid Receivable". This can be done by taking a vendor invoice and recording the taxable supply separately or, having the taxable expense go through your bank account and then "imputing" the tax in Wave. The net amount of HST payable is HST Payable less HST Paid.
If you acquire fixed assets for business use, the HST paid can be deducted as HST Paid Receivable too. The HST report (GST 34-2) is reported using your business number: xxxx-xxxxx RT0001.
An entrepreneur does not have to register for a business number for HST reporting purposes if their exigible (billable) revenue is less than $30,000.