At GTA Accounting, we have observed that many businesses jump directly into import-export business without adequate prior knowledge. As a result, they face many impediments in maintaining their financial records and filing their taxes with the CRA. Every country has its own set of tax rules associated with import-export business such as GST/HST in Canada.
Import-Export businesses may need to register for the GST/HST. This means that:
They need to charge, collect, and remit the GST/HST on the taxable supplies in Canada
They need to file GST/HST returns on a regular basis
They should be able to claim input tax credits (ITCs) to recover the GST/HST paid or payable on the purchases.
Why an Accounting Firm is Helpful for an Import / Export Business
Importer/exporter are required to provide GST/HST number with invoices, receipts, and any other documentation required by them to claim input tax credits (ITCs). Additionally, copies of invoices, receipts etc. should also be maintained by the importer/exporter in order to claim ITCs for the GST/HST paid by them.
If you import goods into Canada or export goods to other countries, you need to register for an import-export program account. CRA will use your import-export program account number to process customs documents. You may have more obligations of the CRA while importing or exporting goods or services like 1) Reporting your shipments, 2) Accounting for your goods, 3) Paying taxes, & 4) Paying duty etc.
AtGTA Accounting, we have been engaged with many import-export businesses in preparing their financial statements, filing corporate taxes and GST/HST returns. We don’t only take care of their financial data that will be used in filing corporate income tax returns and GST/HST returns but we are also familiar with import-export processes, obligations for import-export businesses and the CRA’s requirement to register for an import-export program account. If you are doing import-export business and losing control of your accounting function, GTA Accounting is there to help you in taking the control back.
If you have the intention to become an importer/exporter, GTA Accounting is the right place where you can outsource the accounting and tax components of your business and we will do it all for you.