RC4022 "General Information for GST/HST Registrants"

If you are a small supplier and you are engaged in a commercial activity in Canada, you can choose to register voluntarily. If you register voluntarily, your effective date of registration is usually the date you applied to be registered. However, we will accept an earlier effective date, provided that the date is within 30 days of the date the application for registration is received, regardless of the method of registration.

Inclusion of imported taxable supplies on line 405

Imported services and intangible personal property …

If you consume, use, or supply the imported services or IPP less than 90% in your commercial activities, you generally have to report the GST or the 5% federal part of the HST on line 405 of your GST/HST return and remit the tax directly to us. The tax is calculated on the amount you were charged for the service or IPP and is payable in the reporting period in which the amount for the service or IPP was paid or became payable.

Summary of line 104 adjustments

Line 104 – Adjustments

Complete line 104 only if you have to make adjustments to increase the amount of your net tax for the reporting period. Enter the total of all adjustments. For example:

• If you wrote off the GST/HST amount of any bad debts on a previous return, and then recovered some or all of those debts, add the amount of the GST/HST you have recovered. For more information, see Bad debt recovered.
• If you have claimed 100% ITCs for lease payments for a passenger vehicle during the year, and these lease payments are more than the maximum lease costs that are deductible under the Income Tax Act, once a year you have to add the amount of the ITCs over-claimed on line 104. The maximum lease cost is $800 per month (this amount does not include federal or provincial taxes). Although you are allowed to claim 100% ITCs for lease payments greater than $800 during the year, you have to pay back the ITCs claimed for the portion of lease payments that are greater than $800 per month.
• If you have claimed 100% ITCs for meal and entertainment expenses during the year, once a year you have to add 50% (or the applicable percentage for Long-haul truck drivers) of those credits to your net tax. For more information, see Meal and entertainment expenses. …

Summary of line 405 adjustments

Line 405 – Other GST/HST to be self-assessed

Complete this line if:

• you are a registrant and have to self-assess the provincial part of the HST on property or services brought into a participating province. For more information, see Tax on property and services brought into a participating province;
• you are a registrant who imports a taxable supply for consumption, use, or supply in less than 90% of your commercial activities and you have to self-assess the GST/HST. Enter on this line the total amount of the GST/HST due on imported property or services. For more information, see Imported goods and Imported services and intangible personal property.
• you are an international organization and internal use of a support resource or intangible resource occurs in Canada for a supply of a service or intangible personal property that was made outside Canada, but that is not exclusively (90% or more) for consumption, use, or supply in commercial activities, and you have to self-assess the GST/HST on the deemed supply; or
• you are a financial institution and a qualifying taxpayer and have to self-assess the GST/HST using the special rules for financial institutions. For information, see Technical Information bulletin B-095, The Self-assessment Provisions of Section 218.01 and Subsection 218.1(1.2) for Financial Institutions (Import Rules).