# Paying my business HST ticks me off...



## Ihatetaxes (May 5, 2010)

So my company has to remit our net HST to Revenue Canada on a quarterly basis and I don't have a problem with it.... EXCEPT... we always have to pay a full quarter before we have collected all the receivables from clients. For example, paying it today for the quarter ending Feb 28th and $26,212 of the payment I am making HASN'T been paid to us yet. Oh and of course I am also paying a huge remittance cheque, monthly tax installment and HST for our RE co.

Did I mention I HATE TAXES?

Ok rant over back to paying taxes...


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## wendi1 (Oct 2, 2013)

I actually don't mind paying taxes - I just wish it was easier and more logical to do so. For instance, I no longer remit quarterly, since I forgot once and had to pay a penalty. Monthly for me.

It also bugs me that I cannot do my personal income taxes without supporting spreadsheets and a piece of software that I buy yearly.


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## jamesbe (May 8, 2010)

Why is your HST due a quarter before collecting are you net 90?

Mine works out although sometimes HST is missing a little -- but I'm dealing with much smaller numbers. HST is due on the last day of the month following quarter end not the month of quarter end (you have 30 days).

But income takes are due before quarter end which makes ZERO sense.


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## heyjude (May 16, 2009)

Last year my business was due a refund, which did not arrive. After waiting for 3 months my accountant looked into it. They had mailed it to the old business address in another city halfway across the country, an address which had been defunct for three years. It's interesting that that never happens when Revenue Canada sends a bill!


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## Ihatetaxes (May 5, 2010)

jamesbe said:


> Why is your HST due a quarter before collecting are you net 90?
> 
> Mine works out although sometimes HST is missing a little -- but I'm dealing with much smaller numbers. HST is due on the last day of the month following quarter end not the month of quarter end (you have 30 days).
> 
> But income takes are due before quarter end which makes ZERO sense.


Same as you, HST due quarterly - last day of the month following quarter end. The issue is most clients pay in 30-60 days (a few are 75-90 days) so this usually leaves us paying quite a bit of HST we haven't received yet. For example right now only about half of February's invoices have been paid but the whole amount is due next Monday although I am paying it today. Its not like a retail business where revenue is all collected at point of sale.


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## MoreMiles (Apr 20, 2011)

The problem is, most general public is salaried workers so they don't care about your headaches... They think you are just whining and you are in 1% and not 99% etc. I learn to keep my business problems to myself as those employees or general public think that I am trying to have cake and eat it too, until they run their own business. That's my rant after your tax rant. Lol.


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## andrewf (Mar 1, 2010)

Is this really different than people who overpay on taxes withheld on their bonus only to get the refund quite some time later (almost 14 months for me).


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## Ihatetaxes (May 5, 2010)

andrewf said:


> Is this really different than people who overpay on taxes withheld on their bonus only to get the refund quite some time later (almost 14 months for me).


I suppose quite a good comparison although you can avoid tax on bonus by having your employer directly deposit to your RSP. I do this for my employees.


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## Ihatetaxes (May 5, 2010)

MoreMiles said:


> The problem is, most general public is salaried workers so they don't care about your headaches... They think you are just whining and you are in 1% and not 99% etc. I learn to keep my business problems to myself as those employees or general public think that I am trying to have cake and eat it too, until they run their own business. That's my rant after your tax rant. Lol.


For the record - love owning and running a business and have nothing really to complain about. I don't really truly HATE paying taxes but its sure fun complaining about it. 

What is that saying about God give me the strength to change the things I can and ***** about the things I can't... something like that.


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## donald (Apr 18, 2011)

It was never yours to begin with,lol.
I have the samething with my business.cash flow problem?
I wait 45 days on some projects and it drives me nuts because like you I pay before I receive and am always using prior jobs to pay(and suppliers and wages ect ect)
One of my biggest pet peeves is when I am a vendor for someone and they delay my payment(ignore my 30 day terms,but that is the private sector) to satisfy there own cash crunch
It is a constant pay peter from paul


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## RBull (Jan 20, 2013)

I never had to pay in advance. I also paid monthly.


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## Eclectic12 (Oct 20, 2010)

MoreMiles said:


> The problem is, most general public is salaried workers so they don't care about your headaches... They think you are just whining and you are in 1% and not 99% etc...


I'll make you a deal ... when you start taking time away from running your business to lobby the gov't to stop over-charging on my overtime or saying I owe thousands because a keying entry ... I'll dedicate some time to lobbying on your behalf.


Cheers


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## Xoron (Jun 22, 2010)

IHateTaxes, I've always assumed that you only paid the HST on the actual money received. So if the client doesn't pay for 90 days, then wouldn't that HST amount fall into your next payment of HST to the CRA?


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## Ihatetaxes (May 5, 2010)

Xoron said:


> IHateTaxes, I've always assumed that you only paid the HST on the actual money received. So if the client doesn't pay for 90 days, then wouldn't that HST amount fall into your next payment of HST to the CRA?


Unfortunately no. It's based on full HST charged in the last three months.

I just think it would make sense to give businesses 60 days rather than 30 days to pay it as more of it would be received by then. Different classes of business could have different rules. Restaurants and retail who receive the revenue as it's billed should stick to 30 days while B2B or anyone who can prove they are getting paid 30, 60, 90 could have extra time.


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## CPA Candidate (Dec 15, 2013)

I used to work for a business that used a revolving credit line for liquidity and it was always in the red because the company was in a period of rapid growth. The company had to use credit @ 5% in order to remit the taxes on outstanding receivables.


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## donald (Apr 18, 2011)

I am curious cpa,in that real world example you have above.did your vendors in that example apply a penalty if they were not paid in time?
The company that was in rapid growth stuck to the same pay periods or did they negotiate extensions?
I find in the private sector the big fish always has the ability to use other companies due money to pay there own interest on their own leverage(if that make sense)
I am trying to figure out what is normal in the business world and how strict companies are with payment windows and if penalties are generally charged.


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