I wanted to get clarification on whether I need to include the taxes for my business expenses when I'm inputting my expenses in my income tax report.
A friend told me that if you have a GST/HST #, then you DON'T include the taxes in your business expenses because you're supposed to include it in your GST/HST return (https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-businesses/gst-hst-netfile.html). They said if you record it in your income tax report AND your GST/HST return then you're double dipping. I couldn't find info on this online to confirm this.
If you have a GST# and are claiming your GST then you would not include the GST in your expenses as the GST is already being claimed in your GST return. If you do not have a GST# and are not claiming a GST rebate then you would include the GST paid on the expenses on your return.
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Thank you for your response!
Since I have a GST # and will be claiming my GST, does that mean I should exclude the CST from the Professional Fees section? I'm uncertain if I should be including the GST I've incurred on my revenue because in the Professional Fees' section it says "Include work in progress and GST/HST if applicable". And I believe in the previous year, a Turbo Tax agent told me to include the GST for my self-employment income.
If you are a GST/HST Registrant, you don't include it anywhere on the T2125, both for Income and Expenses.
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Thank you for your response. I'm confused about this though because on the page where I need to input the income earned from self-employment, it specifically says to include the GST collected, if any. The tax expert who reviewed and helped me with my report last year told me to include the GST for my self-employment income. I went ahead and filed my report yesterday with the GST included. Please advise if I need to remove the GST so that I can submit a REFILE.
If you have a GST# you are already claiming the GST you charged there and do not need to enter it in your return. It is not advised to Refile before you receive your Notice Of Assessment. For clarification, please contact the Canada Revenue Agency (CRA) by calling them at 1-800-959-8281 and they will be able to inform you on how you should be entering your GST or not according to your personal information.
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