The Canadian Goods and Services Sales Tax (GST) is a federal tax levied on most goods and services supplied in Canada. The Harmonized Sales Tax (HST) is fundamentally the same as the GST, but it is levied on supplies made in the HST provinces, and the tax rate is a combination of the GST plus a provincial component.  This course exposes you to a variety of GST/HST-related topics that are typically encountered. 

The goal of this course is to provide you with a broad overview of GST/HST-related topics in a manner that is easy to read, highlighting useful tips and common traps. The 10 modules are presented in an ordered sequence to allow you to build your knowledge, starting with the basics and moving toward more complex subjects. The time to complete each module will depend on your interest in a particular topic and the time you take to contemplate the material and apply it to personal industry experiences.

At the time of writing, the results of the British Columbia HST referendum had just been announced. These results will cause the British Columbia HST to be discarded by March 31, 2013, and the 7% British Columbia Provincial Sales Tax (PST) will be resurrected, accompanied by the 5% GST. Accordingly, the material in this course is presented as at August 31, 2011, and the British Columbia HST content is relevant until it is phased out.  Information regarding the British Columbia HST phase-out will be announced by the federal government in the near future.

The course is divided into 10 modules. Each module ends with a Topic point summary which highlights the main points of that module. There are two online quizzes at the end of modules 5 and10 to test the reader’s general knowledge of the subject matter.

It is very important that you understand the terminology unique to the GST/HST. The everyday meaning of many words and phrases have been enhanced for GST/HST interpretative purposes, and you are encouraged to learn and use the definitions contained in the Excise Tax Act (ETA), subsection 123(1), and in regulations pertaining to the GST/HST (see Appendix A). Appendix A contains topic-specific definitions that relate to particular modules. Appendix B contains examples for the topics covered in Module 4.

Module 1 The GST/HST model
Introduction
The value-added tax concept
Who pays and does not pay GST/HST?
Tax status of property and services
Sources of GST/HST information
Summary

Module 2 Registration
Introduction
Registration requirements
Mandatory registration
Exceptions to the rule for registration
Voluntary registration
Registration rules for public service bodies
Date of registration
How to register
Summary

Module 3 GST/HST collection issues
Introduction
When to collect and remit tax
Tax disclosure
Making a supply
Rounding off fractional amounts
Early or late payments
Related company transactions
Point of sale rebates
Ontario First Nations POS Rebate
Invoice options for POS rebates
Summary

Module 4 Place-of-supply rules
Introduction
GST — Place-of-supply rules
HST — Place-of-supply rules
Summary

Module 5 Imports and exports
Introduction
Imports
Imported services and intangible personal property
Exports
Rebates for non-resident purchasers
Export Distribution Centre Program
Export Trading House Program
Summary

Quiz 1

Module 6 Recovery
Introduction
Substantiating an ITC claim
The recipient of a supply
Documentation requirements
Time limitations for ITCs
Commercial activities
Apportionment rules
Restricted ITCs
Summary
 
Module 7 Recaptured input tax credits
Introduction
Small - and medium-sized businesses
Temporary recapture of ITCs for large businesses
Definition of a large business
Who is not a large business?
What is the recapture period?
Specified property and services
Exceptions to the temporary RITC rules
Discussion of the five specified supplies  
The estimation/reconciliation method
Summary

Module 8 Administrative issues
Introduction
Employee expense reimbursements
Employee allowances
Effect of the recapture rules on employee reimbursements and allowances
Company credit cards
Reimbursements to non-employees
Summary

Module 9 Administrative issues
Introduction
Completing the GST/HST return
Bad debts
Filing frequency
Mandatory electronic filing
Penalties for misreporting the recaptured ITCs
Interest and penalties
Payments and instalments
Audit
Voluntary disclosure program
Summary

Module 10 Other issues
Introduction
Real property
Taxable benefits
Ontario retail sales tax and insurance premiums
Public service bodies
Streamlined accounting — Quick method
Summary

Quiz 2

Summary
Appendices
Appendix A — Definitions
Appendix B — Place-of-supply rules

List of abbreviations

Diane Gaudon, FCGA and entrepreneur, specializes in GST/HST and provincial sales tax training and consultation. She is a frequent presenter of commodity tax-related material to numerous professional organizations, and provides advice to both Canadian and foreign companies of all sizes on federal and provincial sales tax matters.

Diane has over 20 years of experience as a professional accountant with extensive accounting and taxation expertise in many industries, including food products, manufacturing, and construction. She is the author of the CGA Ontario’s Harmonized Sales Tax Part II booklet  and has been a contributor to both CCH Canadian and Carswell commodity tax-related publications.