GST/HST Net Tax Reconciliations
Avoid costly CRA sales tax reassessments. We ensure exact net tax calculations, cross-provincial place-of-supply compliance, and timely e-filing.
Engagement scope & retainer
Net sales tax calculation and CRA electronic transmission from $125 per reporting period for reconciled client books.
All fees confirmed before work begins following an initial diagnostic assessment. Reconciled down to $0.00 variance.
Schedule initial consultation →Overview & Scope
Input Tax Credit (ITC) maximization, place-of-supply rules, and CRA sales tax compliance.
Canadian sales tax is notoriously complex due to differing provincial rates (5% GST, 13% ON HST, 15% Atlantic HST, and provincial PST in BC, SK, MB, QC). ML Financials reviews every sales invoice and expense item to verify place-of-supply rules, maximize eligible Input Tax Credits (ITCs), and ensure your general ledger sales tax balance ties out to your filed GST34 returns.
Key deliverables included
Every engagement includes comprehensive, verified deliverables designed for full compliance with CRA guidelines and seamless external CPA handoffs:
Exact calculation of total sales, taxable revenue, and Input Tax Credits claimed.
Detailed reconciliation tying general ledger liability accounts to filed return confirmation slips.
Screening vendor invoices for valid Canadian business numbers and proper documentary evidence.
Compliance verification for sales to US/international customers and software subscriptions.
Compiling sample invoice packages and reconciliation schedules requested during CRA sales tax reviews.
Secure electronic filing through CRA Represent a Client with instant confirmation numbers.
Common compliance traps avoided
Canadian business tax and accounting regulations are stringent. Here is how our disciplined methodology prevents costly CRA audits and administrative penalties:
Billing customers in other provinces using Ontario 13% HST instead of destination provincial tax rules creates sales tax liabilities and client friction.
CRA disallows ITCs if vendor receipts omit the seller's GST/HST registration number or fail to explicitly break out tax amounts.
Conflating tax-exempt services with zero-rated supplies causes invalid ITC claims that must be repaid with arrears interest during an audit.
Allowing a balance to linger in your software's GST/HST liability account that does not match filed returns creates compounding balance sheet errors.
Prior-Year Cleanup or Review Needed?
If prior fiscal periods require historical reconstruction, unfiled HST returns, or ledger cleanup before routine monthly maintenance can begin, we perform an initial diagnostic and prepare a flat catch-up proposal.
Inquire about catch-up scope →Frequently asked questions
Clear answers regarding our GST/HST Net Tax Reconciliations scope, timelines, and Canadian accounting standards.
What is an Input Tax Credit (ITC)?
An ITC is a credit for the GST/HST paid or payable on purchases and expenses you incurred in the course of your commercial activities, directly offsetting the tax you collect.
What information must be on a receipt for CRA to accept an ITC?
For expenses over $30, receipts must include the supplier's name, date, total paid, and the supplier's valid 9-digit GST/HST Business Number.
Can I claim HST on meals and entertainment?
Under CRA rules, the allowable ITC on food, beverage, and entertainment expenses is generally limited to 50% of the tax paid.
What should I do if CRA selects my HST return for a desk review?
Do not panic. We regularly prepare and submit the exact 10 largest supplier invoices and reconciliations CRA auditors require to clear reviews swiftly.
Let's discuss your bookkeeping & tax needs.
Tell us your entity type, tax years, and current accounting setup. Prepare a consultation inquiry or contact our certified bookkeeping team directly to discuss availability and engagement scope.
Direct Line: (873) 288-1923
Official Email: accounting@mlfinancials.ca
Practice Office: Suite 100, 310 Miwate Private, Ottawa, ON K1R 0E2
Before you send
Please provide a brief description of the bookkeeping or advisory assistance you need. Do not email SINs, passwords, banking credentials, or sensitive tax documents in your initial message.
Upon mutual agreement and engagement confirmation, we will provide a private, SOC-2 compliant client upload portal for secure document sharing.
Information on this website is general and is not individualized tax or legal advice. Engagements are subject to client acceptance, agreed scope of work, and applicable CPB Canada professional standards.