It is a fact that some Canadian truckers operate outside of their GST registered home province and as a result will buy and pay for business and trucking related expenses that include GST/HST at tax rates different from that of their GST registered home based province. CRA auditors know this and when returns are selected for audit, they will usually request to see copies of the invoices to check the tax rate applied and if you or your system used only your home base GST registered tax rate for all of your expenses, they got you. Your return will be re-assessed and you could have amounts to repay including interest.
To avoid this some truckers manually add all the GST-HST paid from all of their invoices for the filing period and use the information to file the return. That is good but very time intensive. With the Truckers-Books Software users never have to manually extract the GST-HST amounts from paid invoices and receipt. Instead they simply enter the total expense from the bottom-line of invoices and receipts and the Truckers-Books Software automatically calculates the GST-HST amounts you paid in your home based province and all other provinces where you operated and had expenses, and send this information to the printable GST-HST Tax return ready form built into the software.
How it works
As you enter your operating expenses from invoices and receipts, if you have expenses that are from provinces other than your GST registered home based province, you would simply click the Province Name Link from the operating expense worksheet and it will bring you to the Out of Provincial GST-HST Tax Rate Management spreadsheet.
This spreadsheet in the software, include links for all of the provinces and uses each province GST-HST set tax rate to calculate your refundable GST from trucking expense that you incurred outside of your GST-HST registered home base province.
On this spreadsheet, just select the province and the system will take you to that province data capture spreadsheet. Once on the selected province spreadsheet page, use the expense menu bar to select the type of expense you wish to record that was purchased. The selected expense link on the menu bar will take you to the applicable expense column to allow you to enter the expense.
The system will calculate the refundable GST-HST amount from the total expense you entered and place this into the GST-HST return form. This way, when it is time to file your GST return, the refund amount being claimed would have been calculated using the GST/HST rates for each of the provinces where you purchased goods and services.
This means that in the event of a GST-HST audit, you will have a printable GST-HST paid by Province report, that you can provide to satisfy the auditor that the refunds claimed in the tax return being audited was calculated using the proper GST-HST tax rate in each province where the qualified expense was incurred.
This feature will help make your next GST-HST audit Hassle-Free.
So with this easy-to-use Truckers-Books software, you will no longer have to spend your time manually extracting the GST-HST paid from invoices and receipts in order to file your returns. Just enter your expense totals, print the GST ready to file report and file the return.
This means you will save time, as well as money and always know your numbers and being able to back-them up.