GST/HST again. Today we are going to talk about what information should be included  on your invoices.

Generally, when the GST/HST is being applied to the purchases, businesses need to let customers know their GST/HST number . Simply, businesses can use cash register receipts, invoices or contracts to inform customers whether the GST/HST is included in the price, or added separately. If HST applies to the supply, show the total HST rate. It is not necessary to show the federal and provincial parts of the HST separately.

On the other hand, to ensure that  ITC claims only include GST/HST charged by someone who is registered for GST/HST, you can confirming a GST/HST account number with the CRA.

Why?

The CRA may deny the ITC claims if auditors find out the supplier has no legit GST/HST registration. In a recent tax court case, the CRA had denied a over 500k ITC claim because the business did not exercise enough due diligence to find out if the suppliers’ GST/HST registration was valid. A quick check on the invoice could save significant delays when you claim your ITCs and avoid any future denial from the CRA.

Then, how to confirm a GST/HST account number?

You can use the GST/HST Registry to confirm that the business charging you GST/HST is registered. Here is the link: www.cra-arc.gc.ca/gsthstregistry. The Registry asks you to enter the GST number, supplier name, and invoice date to confirm that the supplier is registered with the CRA. Hopefully, the search does not show the supplier is registered, then they probably not supposed to charge you GST and you are probably not supposed to claim an ITC when they charge you this GST. Check if you smell fishy.