Why should my business charge and collect HST if it doesn’t have too? ITC Input Tax Credits

If you run your own business in Canada (self-employed or corporation), you are not required to charge and collect HST unless you make more than $30,000.

So assuming you are under the $30,000 limit, the question becomes whether you should voluntarily register for an HST number and then charge and collect it. Let’s look at the pros and cons of each.

The argument for why you would not register for HST and would not charge or collect it, is obviously that you can save your customers 13%. If your services cost $100 then you would charge your customers $100 with no tax and that is all they would pay. On the flip side, if you do register for HST number then you must charge and collect it, so the same $100 service now costs your customer an additional 13% for a total of $113 instead of $100. If you are selling smaller priced products or services, this may not be much of an issue, but as the price increases, not charging HST could be an advantage over competitors.

Now you might be wondering if there is even an argument as to why you would want to voluntarily register for HST and charge and collect it. Absolutely there is, and the reason has to do with being able to claim back the HST you pay on all your expenses related to your business. When you do not charge or collect HST, then you can not claim back the HST you paid on your expenses as an ITC (Input Tax Credit) refund.

The easiest way to explain this is to show you an example for each scenario. We will use a business that generates $25,000 in income and has $10,000 in expenses, and we will assume 13% for HST and will assume an income tax rate of 30%. Remember that even if you do not charge or collect HST, you are stil required to pay HST on all your business expenses.

FIRST EXAMPLE
NOT REGISTERED FOR HST and DO NOT CHARGE or COLLECT HST:

Gross Income = $25,000
HST collected on Income = $0.00

Business Expenses = $10,000
HST paid on Business Expenses = $1,300

Net Income = Gross Income less Business Expenses less HST paid on Business Expenses
= $25,000 – $10,000 – $1,300
= $13,700

ITC Refund (HST paid on expenses) = $0 (not allowed to claim an ITC Refund in this example)

After Tax Income = Net Income less 30% Income Tax Rate
= $13,700 – $4,110
= $9,590

Left over income you get to spend = After Tax Income plus ITC Refund
= $9,590 + $0
= $9,590

SECOND EXAMPLE
REGISTERED FOR HST and DO CHARGE and COLLECT HST:

Gross Income = $25,000
HST collected on Income = $3,250 (you just collect it and pass it on to the Government)

Business Expenses = $10,000
HST paid on Business Expenses = $1,300

Net Income = Gross Income less Business Expenses (not including HST paid)
= $25,000 – $10,000
= $15,000

ITC Refund (HST paid on expenses) = $1,300

After Tax Income = Net Income less 30% Income Tax Rate
= $15,000 – $4,500
= $10,500

Left over income you get to spend = After Tax Income plus ITC Refund less HST Paid On Expenses
= $10,500 + $1,300 – $1,300
= $10,500

FINAL OUTCOME
So when we look at the two examples above, we see that in the Second Example, by registering for an HST number and charging and collecting HST, we can then claim back an ITC Refund of the HST we paid on our expenses, which gives us $10,500 left over to spend versus only $9,590 left to spend in the First Example where we did not charge or collect HST. That’s an additional $910 in your pocket.

CallCentric VoIP Phone Provider Review

CallCentric VoIP Phone Provider Review

CLICK HERE for Official Site of CallCentric VoIP Phone Provider Review
Callcentric

If you are looking for a great VoIP company, I want to highly recommend CallCentric VoIP Phone Provider Review in this review.

They have very competitive prices, awesome service, and most importantly you can sign up for a FREE account and make unlimited free calls to other CallCentric customers for life.

VoIP stands for Voice Over Internet Protocol and basically means that CallCentric is phone service provider that uses the internet to make calls instead of using traditional copper phone lines. This results in huge savings on your monthly phone bill, especially when it comes to international long distance.

CLICK HERE for Official Site of CallCentric VoIP Phone Provider Review

For your personal phone, they can help you get up and running quickly with either your own device (BYOD) or can recommend different devices that have been tested with their service. And for business, they can help you with a simple single phone setup or with a complex PBX or Asterisk Server. They have several plans to choose from including pay-as-you-go and unlimited calling plans, and you can also choose your own phone number from a variety countries.

You have nothing to lose by trying their FREE service (no credit card required), so sign up today and you will not regret it!

From their website:

 Imagine you have a phone number so callers can reach you whether you’re near or far; walking with a mobile phone, at home or the office, using VoIP or a regular phone line. And even more, this number is not in the country where you live.

Sign up now for CallCentric VoIP Phone Provider Review and try it before you buy it for free.

Callcentric
CLICK HERE for Official Site of CallCentric VoIP Phone Provider Review

Auto Export DB Table to CSV File WordPress plugin that works with TablePress

This WordPress plugin lets you automatically schedule the export of a table from a MySQL query made on the WordPress database, and save it as a CSV file. You can then use this CSV file anyway you want

Works with the TablePress Automatic Periodic Table Import extension, so you can show/view/display any database table on a WordPress page.

Version 1.0.0 has no settings page yet, so all changes need to be made in the /wp-content/plugins/auto-export-db-table-to-file/auto-export-db-table-to-file.php file directly.

Download from here:
auto-export-db-table-to-file-v1.0.0.zip

 

Show Empty Product Categories for WooCommerce WordPress plugin

Show Empty Product Categories for WooCommerce WordPress plugin now available.

Show WooCommerce product categories even when they are empty and have no products assigned to them.

You can now easily enable or disable the display of empty product categories in WooCommerce.

** You may need to change your Shop Page Display and/or Default Category Display to include Subcategories on the WooCommerce > Settings > Products > Display page.

Auto Login New User After Registration WordPress plugin

Auto Login New User After Registration WordPress plugin v1.5.4 now available!

Automatically login new user right after they have registered. Add Password field to registration form. Disable admin notification emails of new user registrations and user password resets. Allow redirect of new user to any page right after they have registered.

This plugin has the following great features:

– Auto-login: When a new user registers, this will automatically log them in right away.

– Redirect: Choose the web page you want them to be redirected too after they register and are auto-logged in.

– Independent option to add Password field to new user registration form, so users can create their password during registration instead of having to wait for an email and clicking the link in the email.

– Independent option to disable the annoying admin notification emails about new user registrations. User will still receive their email about how to setup their password.

– Independent option to disable the annoying admin notification emails about users lost/changed password. User will still receive their email about how to reset their password.

OSX Bible Verse Screensaver for MacBooks and Macs – KJV and ESV

This is a great OSX Bible Verse Screensaver for your MacBook and Mac. I have modified the ESV Daily Verse Screensaver created by Brett Taylor. His original version is located here http://inner.geek.nz/projects/screensavers/.

The only minor problem with Brett’s original screensaver was that the verse moved around the screen quite fast and non-stop, so it was very hard to actually read and it made you feel kinda sea sick.

My version has been modified to show the verse in one place for 10 seconds and then it will slowly move to a new location. I have also created two versions, one with KJV verse and one with ESV verse so you can choose your preference.

The KJV version gets it’s daily verse from here:
https://www.biblegateway.com/votd/get/?format=atom

The ESV version gets it’s daily verse from here:
http://www.gnpcb.org/esv/share/rss2.0/daily/

HOW TO INSTALL

– Download the .qtz files from here:
KJV version: http://iwebss.com/wp-content/uploads/2016/04/KJV%20Daily%20Verse%20MODIFIED.qtz
ESV version: http://iwebss.com/wp-content/uploads/2016/04/ESV%20Daily%20Verse%20MODIFIED.qtz

– Once downloaded, move the files into the ~/Library/Screen Savers folder in your user folder.

– Then go to your System Preferences > Screen Savers and you should be able to select one of them as your new screen saver.

Let me know what you think by leaving a comment below.