GST / HST / VAT Reports, Return Preparation and filing
GST / HST, An Overview
GST (Goods and Service Tax) or HST (Harmonized Sales Tax) is a tax charged on the supply of goods and services made in US or Canada and on the importation of goods thereto. It is also charged in various other parts of the Globe with the same or other names like VAT (Value Added Tax), Sales Tax or Service Tax. Presently we support GST / HST preparation and filing for Canada, United States of America and Singapore.
How It Affects Your Business?
Almost all businesses are affected by GST or HST as they either deal in goods or services. If you supply goods or services in your own country, most of such goods and services are subject to GST / HST. Similarly, if you import goods in your country, it may also be subject to GST / HST. However, if you export goods or services, it is mostly not chargeable to GST / HST and is considered as Exempt or Zero rated depending on where you do business.
Similarly, when you purchase goods or services, you pay GST / HST, which is available as Input Tax Credit (ITC) if you used such goods or services in supplying your goods or services. To put it otherwise, GST / HST paid on goods or services purchased is available as credit while paying GST / HST while you supply goods or services.
Based on your turnover or tax liability, you need to remit your GST / HST on monthly, quarterly or annually to the Government account, i.e. to Canada Revenue Agency (CRA) in Canada, to IRS in USA and to IRAS in Singapore. Additionally, you need to report GST / HST with the same frequency to the Government by way of filing GST / HST returns.
What is TurboTax?
TurboTax is a popular software program and online platform for preparing and filing income tax returns in the United States. It was developed by Intuit and offers a range of tools and features to help individuals and small businesses accurately and efficiently file their taxes. It is designed to guide users through the process of entering their tax information, applying relevant deductions and credits, and generating a completed tax return that can be filed electronically with the Internal Revenue Service (IRS).
How does TurboTax Affect Your Business?
One of the key benefits is that it provides access to a range of deductions and credits that businesses may not have been aware of otherwise. The platform can help businesses identify expenses that are tax-deductible, such as equipment purchases or business travel expenses, as well as credits for things like research and development, energy-efficient improvements, and hiring certain types of employees. By taking advantage of these deductions and credits, businesses can potentially lower their tax liability and increase their profitability.
In addition to providing access to deductions and credits, TurboTax can help businesses stay up-to-date with changing tax laws and regulations. The platform is constantly updated to reflect new tax codes and changes to tax policies, ensuring that businesses are always in compliance with the latest requirements. This is particularly important for small businesses, which may not have the resources to hire a dedicated tax professional to keep up with these changes.
It can help businesses save time and resources by streamlining the tax preparation process. By automating many of the more time-consuming and complex aspects of tax preparation, such as calculating deductions and credits, TurboTax can reduce the amount of time and effort required to file taxes. This can free up business owners and employees to focus on other important tasks, such as running and growing the business.
The harmonized sales tax (HST) is a combination of federal and provincial taxes on goods and services in five Canadian provinces. The concept behind the HST was to streamline the recording and collection of federal and provincial sales taxes by combining them into a single, uniform levy across Canada.
GST is a tax set by the federal government that every province and territory adheres to. PST is a provincial tax that only certain provinces use, some in conjunction with GST and some separately. HST is a combination of GST and PST that is used by several provinces.
The GST tax rate applies to outright transfers of property and certain other transfers of property to a trust. Generally, trust income or principal distributed to grandchildren are subject to GST.
Conditions to claim an input tax credit under GST. Such input tax credit is eligible for claims if the goods or services purchased are further used for business purposes and not personal use. Buyer must hold such tax invoice or debit note or document evidencing payment towards the purchase.
Small businesses in Australia that turn over less than $75,000 per year don’t have to pay GST. If you’re a registered not-for-profit, you also don’t have to pay GST as long as your turnover is less than $150,000. If you run a taxi service or are an Uber driver, for example, you must always pay GST, regardless of income.