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AllanG
Joined: 14 Jul 2008
Posts: 3
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| Posted: Wed Sep 03, 2008 3:09 pm Post subject: gst credit question? |
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| Maybe someone can help me. I'm a subcontractor, and have just recently had to get a gst #. For figuring out the gst credit for my car payments, do I figure 5% of the car payment each month, or do I have to calculate it based on the gst amount from the sales invoice? |
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BirchAccounting
Joined: 09 Aug 2008
Posts: 14
Location: Surrey, BC, Canada
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| Posted: Thu Sep 04, 2008 7:45 pm Post subject: |
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| GST should be used as in input tax credit in the month that it is purchased... not split up over the term of the loan - those payments are principle and interest only. If you leased the vehicle you claim each month according to the payment schedule. How long ago did you purchase the vehicle?? you may be able to get the start date of your GST changed so that you can take advantage of this credit... but that results in you having to pay GST for the sales that you have already billed out without actually having billed your clients for it. |
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AllanG
Joined: 14 Jul 2008
Posts: 3
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| Posted: Fri Sep 05, 2008 4:24 pm Post subject: |
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| Thanks for the info. To change the start date for my gst I would just call CRA then? That would then affect my reporting period? I bought the car at the end of may. Would that just add two extra months onto the current reporting period? or would I have to complete a return for the previous period. Sales invoiced in this period are not an issue as I was recovering from a broken ankle and had none to speak of. |
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AllanG
Joined: 14 Jul 2008
Posts: 3
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| Posted: Fri Sep 05, 2008 4:25 pm Post subject: |
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| Thanks for the info. To change the start date for my gst I would just call CRA then? You also said "may". Has this been done before? Also, would that then affect my reporting period? I bought the car at the end of may. Would that just add two extra months onto the current reporting period? Or would I have to complete a return for the previous period. Sales invoiced in this period are not an issue as I was recovering from a broken ankle and had none to speak of. |
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BirchAccounting
Joined: 09 Aug 2008
Posts: 14
Location: Surrey, BC, Canada
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| Posted: Fri Sep 05, 2008 5:13 pm Post subject: |
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| If it's only two months you shouldn't have any issues (we've had some clients go back a year) - just call them up and let them know you would like to change it. If you are on an annual payment schedule then you don't need to worry just keep going as you have been. If you are reporting quarterly you would then need to request that they send you a form to fill out for the previous period. If you have any further questions please email and we would be glad to help you out. |
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