Document text
Letter to Client: GST/HST on Invoice [INVOICE NUMBER] — Revised Invoice
[YOUR BUSINESS OR FULL NAME]
[BUSINESS ADDRESS]
Telephone: [PHONE] · Email: [EMAIL]
GST/HST registration number: [BUSINESS NUMBER] RT0001
[CLIENT'S LEGAL NAME]
Attention: [CONTACT NAME / ACCOUNTS PAYABLE]
[CLIENT'S ADDRESS OR EMAIL]
[DATE]
Re: GST/HST payable on invoice [INVOICE NUMBER] dated [INVOICE DATE] — revised invoice [REVISED INVOICE NUMBER]
Dear [NAME],
On [DATE OF SUPPLY] I supplied [DESCRIPTION OF GOODS OR SERVICES] to you for $[PRICE BEFORE TAX]. My original invoice did not include GST/HST, because until then I was a small supplier.
1. Why GST/HST applies to this sale
In the calendar quarter [QUARTER, FOR EXAMPLE JULY 1 – SEPTEMBER 30, YEAR] my revenue from taxable supplies went over $30,000 with this sale:
Amount
Taxable supplies earlier in the same quarter $[AMOUNT]
This supply (invoice [INVOICE NUMBER]) $[PRICE BEFORE TAX]
Quarter total including this supply $[TOTAL ABOVE 30,000]
Under subsection 148(2) of the Excise Tax Act, a person stops being a small supplier immediately before the supply that takes the quarter over $30,000. The CRA confirms that GST/HST must be charged on that supply, and my registration takes effect no later than that day: [EFFECTIVE DATE]. Under subsection 165(1) [AND 165(2)] the tax is payable by the recipient of the supply, and under subsection 221(1) I must collect it.
2. Amount due
Amount
Price before tax $[PRICE BEFORE TAX]
[GST 5% / HST 13% / HST 14% / HST 15%] $[TAX AMOUNT]
Total of revised invoice $[TOTAL]
Already paid on [DATE] −$[AMOUNT PAID]
Balance: GST/HST to pay $[TAX AMOUNT]
The revised invoice [REVISED INVOICE NUMBER], enclosed, replaces the original and shows the tax and my registration number as subsection 223(1) requires. [IF YOUR CONTRACT STATES THAT THE PRICE INCLUDES TAX: … EXPLAIN HOW YOU APPLY IT.]
3. What I ask you to do
Please pay the balance of $[TAX AMOUNT] by [DATE — 14 DAYS FROM THIS LETTER] to [PAYMENT DETAILS]. If you are a GST/HST registrant, the revised invoice should allow you to claim an input tax credit for this tax.
If you have any question about this invoice, please reply by the same date.
Yours sincerely,
____________________
[YOUR FULL NAME]
Enclosed: revised invoice [REVISED INVOICE NUMBER]; copy of original invoice [INVOICE NUMBER]
For me
[ ] Day of the supply that took the quarter over $30,000: [DATE] = latest effective date
[ ] Registered within 29 days of that date: [DATE, CONFIRMATION]
[ ] Tax on this supply accounted for in my GST/HST return for [REPORTING PERIOD]
[ ] All later invoices show GST/HST and my registration number