Where it has been determined for income tax purposes that an amount is a reimbursement, the CRA accepts this determination for GST/HST purposes.įirst condition: the reimbursement is paid to an employee, partner or volunteerħ. an accountable advance, which is an amount given for expenses to be incurred and to be accounted for by the production of vouchers, and the return of any amount not so spent.ģ.a cash advance obtained (either before or after the acquisitions are made with the cash advance) by the employee, partner or volunteer with the company credit card and.a direct payment made on account by an employer, partnership, charity or public institution as long as the liability for payment does not rest entirely with this person (for example, where an employer and an employee are jointly and severally liable to pay an amount on a corporate credit card).The CRA considers the following to be reimbursements: An amount constitutes a reimbursement where the amount is fully accounted for by the person receiving the payment (i.e., evidenced by supporting vouchers or records).Ģ.
For the purposes of section 175, a reimbursement is a payment made by one person to repay another person for amounts spent. The GST applies in the rest of Canada at the rate of 5%. If you are uncertain as to whether a supply is made in a participating province, you may refer to GST/HST Technical Information Bulletin B-103, Harmonized Sales Tax – Place of Supply Rules for Determining Whether a Supply is Made in a Province.Īll legislative references in this memorandum refer to the Excise Tax Act unless otherwise indicated.ġ. The HST applies in the participating provinces at the following rates: 13% in Ontario, New Brunswick and Newfoundland and Labrador, 15% in Nova Scotia, and 12% in British Columbia. Note: Reference in this publication is made to supplies that are subject to the GST or the HST. You may also visit the Revenu Québec Web site to obtain general information. If you are located in Quebec and wish to make a technical enquiry or request a ruling related to the GST/HST, please contact Revenu Québec at 1-80. If you wish to make a technical enquiry on the GST/HST by telephone, please call 1-80.
#REIMBURSEMENTS STAFF BOOKKEEPING DUE TO DUE FROM HOW TO#
Pamphlet RC4405, GST/HST Rulings – Experts in GST/HST Legislation explains how to obtain a ruling and lists the GST/HST rulings offices. A ruling should be requested for certainty in respect of any particular GST/HST matter. As it may not completely address your particular operation, you may wish to refer to the Act or appropriate regulation, or contact any Canada Revenue Agency GST/HST rulings office for additional information. Disclaimer: The information in this memorandum does not replace the law found in the Excise Tax Act (the Act) and its regulations.
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