Sales Tax Services
Focused Sales Tax Services ensure that your GST, HST and PST are accurate and are filed on time, every time.
Sales taxes can be confusing to most entrepreneurs! They wonder whether they are charging the correct amount of GST/HST and PST. The rules can be difficult to understand and apply, depending on circumstances.
Then, the issue of preparing sales tax returns and filing them can be daunting. Counting total sales taxes collected from customers is not too bad, but what about the GST/HST you paid on the purchase of products and services used to run your business. Those input tax credit (GST/HST paid on expenses) reduce your tax liability. The challenge is having your books up-to-date and accurate so that you can meet your obligation to the Canada Revenue Agency … which they take very seriously.
Common Concerns regarding Sales Taxes (GST & PST)
- I don’t like getting surprised by the amount of sales tax that has accrued and is owing
- I can keep track of the sales tax collected from my customers, but it is challenging to add up the GST I have paid on expenses
- I am not sure that I am calculating GST and/or PST properly
- I need advice on sales taxes
How to Avoid Late Penalties and Interest
The Canada Revenue Agency and the BC Ministry of Finance imposes a fiduciary responsibility on businesses to hold the taxes collected on sales “in trust” to be remitted on a regular basis.
If your business owes more than $3,000 in GST in a year, then the business is obligated to file their sales tax returns on a quarterly basis, and send in a GST installment payment. Similar rules apply to PST.
Bookkeeping should be done on a monthly basis, so that management know where they stand. Even if you file quarterly or annually, it is better to know how much to set aside, rather than discover at the end of the year that you have a big sales tax bill, and insufficient funds to cover the liability.
We take the mystery out of Sales Taxes
When we accept a bookkeeping engagement with a new client, it is common to find ways to improve the process and to minimize the amount of sales taxes owing. We will give you the peace of mind to know where you stand, and provide you with strategies for remitting and managing your cash flow.
How We Improve your Sales Tax Reporting
- We will carefully review the way in which you are calculating the GST and PST on your invoices and/or sales receipts, and let you know if a new procedure is required
- We will make sure that the GST you pay on expenses is considered as input tax credits, which will reduce the net amount of GST payable
- We will ensure that your sales tax filings are accurate and up-to-date
- It has been our experience that most new clients are worried about sales taxes. Often, the sales tax issue has more impact on the company’s cash flow than income taxes.