If you provide a transportation allowance, the GST is also included. Utilities are generally subject to GST/HST, so you would include that in the value of the allowance.
However, short-term accommodation is generally subject to GST/HST. When you provide a worker with a long-term accommodation (30 days or more) in prescribed zones, it is generally exempt from GST/HST, so you would not include the accommodation in the value of the benefit. Clarification would be much appreciated.įrom your question, I do not know if you are talking about a housing allowance only, or a transportation allowance and a housing allowance. When working for other contractors, they have sent the GST to the CRA, because they told us it would be considered in lining otherwise. We have been charging them GST and will send it to the CRA. We invoice our services and live out allowances. Is GST charged when invoicing a live out allowance (an LOA)? A mine sells to a contractor, who we have a contract with as a subcontractor. However, the cost of benefits or non-cash compensation provided to an employee, commonly referred to as a fringe or employee taxable benefit, may be subject to the GST/HST. Salaries, wages, commissions, and other cash remuneration (including gratuities) you make to employees are not subject to GST/HST. In what situations would GST/HST affect payroll? You can find more information about the GST/HST in the recorded webinars on the Canada.ca website. To claim an ITC, an expense must be reasonably related to your business. On the screen, you have examples of common purchases and expenses for which you may be eligible to claim ITCs. You may be eligible to claim ITCs on expenses that relate to your commercial activity.
CANADA REVENUE AGENCY HST QUESTIONS HOW TO
We received a lot of questions about input tax credits (ITCs) and how to claim the GST/HST you paid. Information on how to calculate the tax is in the section called “Automobile operating expense benefits” and “Benefits other than automobile operating expense benefits” in the T4130.Īnd step 4 – Enter the amount of the GST/HST due on your GST/HST return and send the amount with your return for the reporting period that includes the last day of February.įor information on how to fill out a GST/HST return, see our recorded webinars for businesses on the Canada.ca website. Step 3 – If you are considered to have collected the GST/HST on a taxable benefit, you have to calculate the amount of the tax that is due. Step 2 – For each taxable benefit, determine if there are situations where you are not considered to have collected the GST/HST. Step 1 – Determine whether the benefit is taxable under the Income Tax Act or the Excise Tax Act (see the Benefits chart in the Guide T4130 employers' guide – Taxable benefits and allowances.) The following steps will help you determine whether you have to send to the CRA the GST/HST on employee taxable benefits. However, there are situations where you will not be considered to have collected this tax on benefits given to employees. If a property or service benefit is subject to GST/HST, you are considered to have collected the GST/HST on that property or benefit. Generally, if a benefit is taxable as income, we consider you to have made a supply of a property or service to the employee. Your employee has received a benefit if you pay for or give something that is personal in nature.
For the most part, the Income Tax Act directs the GST/HST treatment of these benefits. The cost of benefits or non-cash compensation provided to an employee, commonly referred to as fringe or employee taxable benefits may be subject to the GST/HST. You will also find webinars about taxable benefits and GST/HST.īefore I answer your questions, I will quickly review the GST/HST rules as it applies to payroll.
You can also visit Canada.ca, and search for “Recorded webinars for businesses.” Those webinars will help you with different aspects of payroll and more.
But as always, if you have questions on other tax-related matters, please contact the CRA’s business enquiries line at 1-80. This webinar will focus only on the GST/HST as it applies to taxable benefits. Some of the questions did not relate to the GST/HST applicable to taxable benefits. Today’s webinar will be recorded and posted at a later date on the Canada.ca website. My name is Maurice and I am your presenter. Hello, and welcome to our questions and answers webinar on the Goods and Services Tax (GST)/ Harmonized Sales Tax (HST).