File: 11650-1, 10(gp)
Subsection 169(1)
Dear XXXXX
As requested in your letter dated November 16, 1995, your previous letter dated November 1, 1995 in which you requested verification that a new XXXXX billing invoice would be satisfactory for documentary purposes has been referred to the Verification, Enforcement and Compliance Research Branch for direct response.
For your information, the following is a summary of the legislative provisions relating to documentary requirements.
Section 223 of the Excise Tax Act (the "ETA") requires a supplier to specify the amount of tax payable on a supply and to provide sufficient information to enable the recipient of the supply to claim any input tax credits (ITCs) to which the recipient may be entitled. Section 169 of the ETA provides that, in order for a person to be eligible to claim an ITC in respect of the tax payable on a property or service, the following conditions must be met:
1. the property or service must be supplied to, or imported by, the person;
2. the person must be a GST registrant during the reporting period in which the supply or importation is made;
3. tax must be payable by the person in respect of the supply or importation, or be paid by the person prior to its becoming payable;
4. the property or services must be acquired or imported for consumption, use or supply in the course of the commercial activities of the person; and
5. the person must have obtained sufficient documentation to establish the eligibility for the ITC before the claim is made.
The Input Tax Credit Information Regulations made pursuant to subsection 169(4) of the ETA specify that the documentation to support any claim for ITCs must contain the following information depending on the value of the supply:
Total Amount Under $30
Where the total amount shown on the supporting documentation, for the supply or supplies reflected in the supporting documentation, is under $30, the minimum prescribed information which must be obtained through the supporting documentation includes:
(a) the supplier's name or trading name:
(b) where an invoice is issued in respect of the supply or supplies, the date of the invoice;
(c) where no invoice is issued in respect of the supply or supplies, the date on which the tax is paid or payable; and
(d) the total amount paid or payable for the supply or supplies.
Total Amount of $30 or More, But Less Than $150
Where the total amount shown on the supporting documentation, for the supply or supplies reflected in the supporting documentation is $30 or more, but less than $150, the minimum prescribed information which must be obtained through the supporting documentation includes the information set out in paragraphs (a) to (d) as well as:
(e) the registration number of the supplier; and
(f)(i) when the supply or all supplies does not include the tax, the amount of tax paid or payable on each supply or all supplies; or
(ii) when provincial sales tax is payable on a taxable supply other than zero-rated supply and is not payable on an exempt or zero-rated supply, the total of the GST and the provincial sales tax paid or payable on each taxable supply or all supplies and a statement to the effect that the total includes the GST;
(iii) when the supply is on a tax-included basis or all supplies are on a tax-included basis, a statement to the effect that tax is included in the amount paid or payable;
(iv) when the status of two or more supplies is different, an indication of the status of each taxable supply other than zero-rated.
Total Amount of $150 or More
Where the total amount shown on the supporting documentation for the supply or supplies reflected in the supporting documentation is $150 or more, the minimum prescribed information that must be obtained in addition to the information set out in paragraphs (a) to (f) as well as:
(g) the recipient's name, trading name, or the name of his or her duly authorized agent or representative;
(h) the terms of payments; and
(i) a description sufficient to identify each supply.
If you have any further questions on this matter, please contact Gwen Preston at (613) 952-8530.
Yours sincerely,
H.L. Jones
Director
General Applications Division
GST Rulings and Interpretations
GTP: 2560 (GEN)
c.c.: XXXXX
XXXXX
M. Matthews
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