Advataxes software/App handle GST HST QST recovery rules on employee expenses and corporate credit cards with ease:
1. Default Sales Tax Rules at the Employee Level
For employees incurring expenses primarily in Quebec, the default tax applied will be 5% GST and 9.975% QST. For those based in Ontario, the default is the 13% HST and so forth. Advataxes automates the application of the appropriate sales tax rules based on the employee primary location, ensuring maximum sales tax automation. This significantly reduces the time employees and approvers spend managing expense claims, especially when dealing with high volumes. Advataxes also tracks and aggregates employee expenses, turning complex transactions into simplified, organized expense reports.
2. Editing Tax Amount
Employees and approvers can edit the precalculated tax amount to ensure that they match taxes on the picture of their invoice. Its an easy task where you don’t have to be a tax expert. Furthermore, your employees will not have to identify portion of an invoice that is not subject to tax.
GST HST QST on Meals and Tips
Advataxes includes a dedicated field specifically for tips. GST, HST, and QST are calculated based solely on the meal amount, excluding any tips. Entering a tip in the designated field does not affect the calculation of these taxes.
The platform follows the exact method required for GST/HST and QST purposes, ensuring precise tax amounts are calculated on meal invoices that include tips. Our OCR technology—available on both the website and the app—automatically extracts the relevant information from invoices, eliminating the need to manually identify non-taxable portions.
If the meal expense is subject to the 50% tax deductibility rule, this adjustment is made in a second step.
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