You can choose to adjust the tax rates for particular fees and expenses without changing the default tax settings, or for all billable activities, if needed. Override Tax Rates

“Disbursement incurred as agent” refers to a matter-related expense (hard cost) where the entire expense, inclusive of taxes, merely passes through the firm’s books. This means that the firm doesn’t claim an input tax credit (ITC) for the taxes paid to the vendor, and the firm doesn’t charge taxes when it invoices the hard cost to the client.

You can record and track payments your firm makes to CRA. Note: This article assumes you are using the default GL Account names and numbers for the Tax Collected/Paid Accounts as the default GL accounts for Sales & Services Taxes.

View an Invoice’s Total Tax and Payment Allocation Details When you create or edit an invoice, the summary section’s Total Tax Applied field displays the sum of taxes.

Canadian lawyers use Teranet/Teraview and other land title registry services to perform conveyancing related activities such as performing title and writ searches and recording registrations.

Input Tax Credits (ITCs) are the sum of the allowable GST/HST paid on business expenses. Input Tax Refunds (ITRs) are the sum of the allowable QST paid on business expenses. The application automatically tracks ITCs and ITRs when you enter amounts in the GST/HST and QST boxes on an accounts payable (AP) bill, a bank withdrawal, or a credit card charge.

This table lists where in the application, you can find the information needed to complete your GST/HST tax filings. Important: The return line references are applicable to paper return line items.

As a default, the application tracks collected GST/HST in the 2201 GST/HST Collected General Ledger (GL) and taxes paid in the 2202 GST/HST Paid GL. However, many firms prefer tracking all tax amounts collected and paid in one GL account.

A client or matter may have a tax status or rate that differs from the firm’s default settings. You can override those settings within each matter.

In Canada, how you record taxes on disbursements depends on the activity or situation. There are cases where: Taxes paid on disbursements are not included in the firm’s Input Tax Credit (ITC)

You may encounter expense items that must be charged a different rate than the firm’s default. When entering an expense, you can change the tax defaults as well as override the tax rate.