Simon operates an HST-registered mobile glass repair service in Ontario. His service revenue for the year is $28 000. His HST-taxable purchases amounted to $4000. Simon does not use the Quick Method for claiming ITCs. By calculating the difference between the HST he collected and the HST he paid, determine Simon’s HST remittance to the CRA.
| Province terriroty | Ontario | ||
| Assuming amount is exclusive of HST taxes | |||
| Tax on sales | |||
| Sale amount | 28000 | Before tax | |
| HST | |||
| Fed | 5% | 1400 | =28000*0.05 |
| Prov | 8% | 2240 | =28000*0.08 |
| 3640 | |||
| After tax amount | 31640 | ||
| Tax on purchases | |||
| Purchase price | 4000 | Before tax | |
| Fed | 5% | 200 | =4000*0.05 |
| Prov | 8% | 320 | =4000*0.08 |
| 520 | |||
| After tax amount | 31640 | ||
| HST Payable | 3640 | ||
| HST Paid (ITC) | 520 | ||
| HST remittable | 3120 | ||
| Assuming amount is inclusive of HST taxes | |||
| Tax on sales | |||
| Sales Price | 28000 | After tax | |
| Fed | 5% | 1238.94 | =28000*5%/113% |
| Prov | 8% | 1982.3 | =28000*8%/113% |
| 3221.24 | |||
| Before tax amount | 24778.76 | ||
| Tax on purchases | |||
| Purchase price | 4000 | After tax | |
| Fed | 5% | 176.99 | =4000*5%/113% |
| Prov | 8% | 283.19 | =4000*8%/113% |
| 460.18 | |||
| Before tax amount | 3539.82 | ||
| HST Payable | 3221.76 | ||
| HST Paid (ITC) | 460.18 | ||
| HST remittable | 2761.58 |
Simon operates an HST-registered mobile glass repair service in Ontario. His service revenue for the year...