In order to get the most out of your taxes, you should fully understand the requirements in regards to tax invoices, which are legal statements of what the goods and services tax amounts are for particular purchases or transactions.
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Understanding Tax Requirements Concerning GST Invoices
In order to get the most out of your taxes, you should fully understand the requirements in regards to tax invoices, which are legal statements of what the goods and services tax amounts are for particular purchases or transactions. You should understand the tax stipulations and policies related to issuing, supplying, and/or holding GST Invoices. This article will explain some of the tax requirements involving tax invoices.
•If you are the supplier of services and/or goods to a registered individual, you will be required to give them a GST Invoice should they request one. This should be issued to them within 28 days from the date of their request. If you fail to comply with their request, you could face financial penalties.
•If you claim tax deductions for supplies totaling less than $50, which includes GST, it is not required that you have the tax invoice on hand. However, you will need to keep a personal record, which should include bills, invoices, statements, or receipts showing the amount of purchase. You should also note the date received, description of the supplies, price paid, and who you purchased the supplies from.
•In order to claim tax deductions for tax invoices totally more than $50 (for supplies), which include the GST amounts, you must have the invoice in your possession. You may not file for the credit without the invoice. If you find yourself unable to get the invoice by tax time, you can still file it on a later return once you have the invoice in your possession.
•In order to claim deductions for supplies that cost anywhere from $50 to $1000, which would include GST, simplified GST invoices can be used. They should prominently display the actual words "tax invoice" and state the supplier's name, GST account number, purchase date, description of supplies/goods/services purchased, the payable amount, and that the GST has been included in the final amount.
•In order to claim deductions for supply amounts exceeding $1000, which includes GST, you must meet several requirements. The tax invoice must display the actual words, "tax invoice", in a clearly visible place on the document. In addition, it should also display the supplier's name and GST account number prominently. It also must include the recipient's name, address, date of purchase, description of items/goods/services purchased, and quantity purchased. Other requirements for the invoice are that it includes the total purchase price for the supplies or goods, the payable amount, and the content of the GST. If the tax invoice does not separate the GST amount from the supply amount, a statement must be included saying that the GST has already been figured into the final amount.
Even if the invoice is for various items (all listed on one invoice) that exceed $1000, then all of the above requirements must be met.
•Duplicated invoices will not be accepted. Registered and eligible individuals are allowed to issue only one invoice per eligible and taxable supply. In the case where an invoice might be lost or misplaced, a copy may be issued by the supplier as long as it is clearly marked with the actual words "copy only".
There may be other requirements regarding tax or GST invoices and tax laws change frequently. You would be wise to check with your tax advisor before filing your taxes.
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