HST and Charities Bookkeeping Question

by Stella
(Ottawa, Ontario, Canada)

HST

HST

I am still in the process of understanding how HST applies to charities in the context of Simply Accounting.

Previously, I allocated 50% of the tax to the GST refundable portion.

However, I need guidance on setting up my system, specifically the tax codes, to accurately reflect the refundable federal and provincial portions of HST.

How can I configure my system to appropriately account for these refundable components and ensure compliance with HST regulations?

Thanks,
Stella

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Jul 17, 2023
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starstarstarstarstar 		Setting Up HST
by: BB

To properly set up your Simply Accounting system for HST with charities, you will need to configure the tax codes to accurately reflect the refundable federal and provincial portions of HST.

First, ensure that you have separate tax codes for the federal and provincial portions of HST. In your case, you would need a tax code for the federal portion and another tax code for the provincial portion.

Next, assign the appropriate tax rates to each tax code based on the current HST rates for the federal and provincial portions.

When recording transactions, make sure to select the correct tax code based on the location and nature of the transaction. This will ensure that the appropriate amount of HST is applied and tracked.

By setting up your system with the correct tax codes and applying them consistently, you can accurately track and report the refundable federal and provincial portions of HST for your charitable organization.

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HST and Mileage

Can I claim HST on mileage expenses for my business?

I use my personal vehicle for business purposes and track the mileage for reimbursement.

I want to know if I can include the HST paid on gas, maintenance, and other expenses when calculating the total mileage expense.

If so, how should I record and claim the HST portion for these mileage expenses?

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Oct 13, 2023
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starstarstarstarstar 		HST Tax Benefits
by: BB

Understand Your Eligibility
First things first, you generally can claim HST on business-related expenses, including mileage. However, it's essential to be diligent in keeping records like gas receipts, maintenance bills, and other vehicle-related expenses, especially when using a personal vehicle for business tasks.

How to Record the Expenses
1. Calculate Mileage
Keep a detailed logbook that specifies business vs. personal use mileage. This is crucial for accurate tax filing.

2. Collect Receipts
Save all relevant receipts that show HST paid on gas, maintenance, and other vehicle-related expenses.

3. Calculate HST on Mileage
Use the proportion of business mileage to total mileage to calculate the HST you can claim.

For example, if 50% of your total mileage was for business purposes, you can claim 50% of the HST paid on eligible expenses.

4. Record in Bookkeeping Software
Make sure to enter these calculations into your bookkeeping software to keep everything transparent and straightforward for tax time.

5. Claim the HST
When it's time to file your taxes, claim the calculated HST amount for business mileage in the appropriate section of your tax return.

Final Thoughts
Claiming HST on mileage expenses can indeed save you money come tax time. Just ensure you're diligent in tracking all expenses and mileage to substantiate your claim.
Jul 17, 2023
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starstarstarstarstar 		Claiming HST Paid
by: Stephanie

Yes, you can generally claim the HST paid on mileage expenses for your business.

When calculating the total mileage expense, you can include the HST portion paid on gas, maintenance, and other related expenses.

To properly record and claim the HST, make sure to keep accurate records of the mileage driven for business purposes and the associated HST amounts paid.

Refer to the guidelines provided by your tax authority to ensure you comply with the specific rules and requirements for claiming HST on mileage expenses in your jurisdiction.
May 17, 2011
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starstar 		HST and Mileage
by: Anonymous

You can claim the HST paid on gas as an ITC if you have a HST business number.

If you use your vehicle for work and for personal use, you have to prorate the HST you can deduct, in the same way you have to prorate the rest of the cost of the gas you purchase for your vehicle.

IE: Business use = Total use - Personal Use
If you don't have a HST business number, you don't have to separate out the HST.

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