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benj215845
August 17, 2023
Question

ITC Requirements for Accountant-Billed Subscriptions

  • August 17, 2023
  • 1 reply
  • 0 views

I'm an accountant that has one client subscription billed through me. Each monthly invoice shows my billing details but also that it was for a specific client. Can my client still claim ITCs on these expenses? Will these invoices be sufficient? 

 

According to the documentary requirements (https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/8-4/documentary-requirements-claiming-input-tax-credits.html#_Toc332092191), it should be fine as long as the amount is less than $150 (per the appendix). Only if the expense exceeds $150 is the following required: "Recipient's name or trading name, or the name of the recipient's agent or duly authorized representative." But even if QuickBooks drastically increased their prices, since I am a representative, there should be no problems?

 

 

1 reply

A
Alex M
August 17, 2023

Hi there benj215845,

 

It's important that all your transaction are entered correctly for your books to be well balanced. QuickBooks Online is a great tool able to help you keep track of taxes so you know the amount due to the government. I can point you in the right direction for assistance with the article you've seen on the government's website.

 

For assistance to know how this rule would be applied to the amounts paid by you for your client's subscription, I recommend reaching out to the government itself. They'll be able to provide some further clarification about their article so that you can make sure you're in compliance with tax regulations.

 

If you have any other questions about QuickBooks Online, feel free to reach out here.

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