GST/HST Issues – Businesses and Individuals

GST/HST Issues - Businesses

 

GST/HST Registrants - Effective Date of Registration

The effective date of registration is important, because it is the date that a new registrant becomes liable for collecting GST/HST on sales, and eligible to claim input tax credits on sales.  If a business charges GST/HST on taxable sales before registering, the effective date of registration is the first date that GST/HST is collected.  Otherwise, the effective date depends on whether the registration is mandatory or voluntary.

GST/HST Issues – Businesses and Individuals

GST/HST Treatment of Coupons, Manufacturers' Rebates, and Gift Certificates

Why do you sometimes pay tax on the full price when you think you're buying something on sale?  Many stores have in-store coupons that they apply, without the customer having to bring the coupon to the store themselves.  Often, when a coupon is applied to reduce the price, the tax is charged on the full price before the coupon.  When a GST/HST registrant is able to receive an input tax credit (ITC) for an item for which a manufacturers' rebate has been received, special rules apply to the ITC.  When a vendor charges GST/HST on the full price before a coupon is applied, they must remit a portion of the coupon amount as GST/HST.

Source: TaxTips.ca