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ginodabbicco@primus.ca

does gross income include HST collected?

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Under T2125 in "gross sales, commissions or fees" do I enter my gross income including HST or not including HST I collected? And therefore do I enter the amount of HST I collected from my customers in the line "GST/HST collected or collectible on sales, commissions and fees eligible for the Quick Method"? Keeping in mind that I will be paying my HST collected separately so I don't think it can be considered income!

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Normally you include the tax collected in the gross income. The amounts that you remitted to the govt will then be subtracted a little further down. If you remit the actual amount collected, then the taxes just get subtracted that way. If you use the "quick method" the calculate the remittence, then the difference that you ended up keeping for yourself gets added to your gross income because it effectively becomes income.   

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1) What does "a little further down" mean?  

 

2) The program is adding the HST not subtracting it from my gross.  And to my understanding HST is not income!  

My nephew who is an accountant said the same thing, either you enter the gross and HST (the program should deduct HST from the gross) or you enter the net without entering HST.  The results should be the same but they're not.  The amounts owed are different.  It is much higher with the gross and HST and it is much less with just the net entered.  That doesn't make sense.  No one from Ufile has responded to my email.

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I have the same question. Gino, any feedback from U-File?

Also, 16.4% of my sales are in the US and I'm not obligated to collect GST/HST however if I don't add it in, the program assumes that it should have collected it and adds it on.

 

If we only list gross income without HST, where do we let the software know how much HST we've collected and paid?

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