Thank you for the reply.
So, since I would be including HST in my inventory expenses before being registered for HST...would I then need to exclude the HST from the evaluation of my inventory value at the time of registering for HST (in the event that the amount I originally paid for the inventory is less than the current fair market value)?
For example, If I purchased an item in my inventory for $226 ($200 + $26 HST) in 2016, it would be reported as a $226 inventory expense in that year since I was not registered for HST. If I register for HST in 2018 and still have the same item in my inventory, and the market value of said item is $300, would I need to value the inventory item at $200 (the original cost minus the sales tax)?
