Sharing Daily Discoveries About Personal Finance And Business Topics

Collecting Payments Before The HST

I got an e-mail that I didn’t really think too much of originally. There is one company that I have a few cheques laying around with where they get a commission of the profit that was made from work related happenings. Since they are a business they have to charge GST on it(Which is a 5% tax here). If I don’t finish the transactions and collect the money before next month they will have to charge a 12% tax on that commission instead due to the new changes.

So that should be something to think about for everyone where if there are any payments to collect in the next day or so you should do it now as opposed to procrastinating and risking having to pay more in taxes. If you are a business it could be a benefit to tell your customers to pay you now for certain services too otherwise they will need to pay you more in taxes.

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