At the Accounting Practitioners Symposium that was held in November 2014 across Canada, we presented our online solution on employee expenses; Advataxes. We discussed the limitation of spreadsheets when it comes to handling recoverable GST/HST & QST, as well as the recapture of input tax credits in Ontario and in PEI by large organizations and the rebate by non profit organizations. Another traditional approach to trigger the tax rule; the use of the tax code, is more effective with Accounts Payable than with Employe Expenses since all employees are involved in the posting process of employee expenses and they are rarely all savvy when it comes to current complex Canadian indirect tax rules.
An efficient approach is to let employees select the type of supply (i,e. meal, Km allowance) the jurisdiction (QC, ON, AB, ..) and a transaction date. It is relevant to be efficient when handling Canadian indirect taxes as there are more and more money involved with recoverable taxes with the current trend of provinces harmonizing with the GST and with the planned removal of the recapture of input tax credits (ON & PEI) and the restricted ITR in Quebec. The presentation highlights this topic and it’s als available on the Slideshare icon at the bottom of this page.