In the app today
Tax-ready all year, free
- Deposits on quotes that come off the final invoice
- GST/HST worked out for the province where the job is
- Snap supplier receipts on site, sorted by T2125 line
- Receipt check for the supplier GST/HST number on purchases of $100 or more
- A running set-aside number for sales tax, income tax and CPP
- Reminders 14 days and 3 days before each CRA date
What usually goes wrong
Deposits taken by text message
Money taken without an invoice is hard to match up later. Put the deposit on the quote, invoice it, and it comes off the final bill automatically.
A truck full of faded receipts
Materials receipts are where your input tax credits live. Snap each one when you buy, and the receipt check tells you if the supplier's GST/HST number is missing.
No idea what you owe until April
Home keeps a running total of the sales tax you collected less the tax you paid on materials, plus a rule-of-thumb amount for income tax and CPP.
The tax reality for contractors
Construction and renovation work is generally a taxable supply, so GST/HST applies at the rate for the place of supply. In Ontario that is 13% HST.
GST/HST you pay on materials and tools can come back to you as input tax credits once you are registered. That is why many contractors register before the $30,000 limit forces them to, and why every supplier receipt matters.
British Columbia and Saskatchewan have their own PST rules for real property contracts. In general, contractors there pay PST on materials rather than charging it to the customer. Confirm your situation with your accountant.
At tax time: the Tax Ready pass
The worksheets are free to try during Early Access. The paid pass will be about $79 for sole proprietors and about $199 for corporations. It is not on sale yet. It gives you:
- A GST/HST worksheet laid out on CRA's return lines
- A T2125 package with your income and expenses by line
- A receipt audit that points out what is missing before you claim
Worksheets and guides only. You file with CRA yourself.
Invoicing that does the tax for you
Common questions
- Can I invoice a deposit before starting the job?
- Yes. Add a deposit to the quote. When the customer accepts, you invoice the deposit, and it is taken off the final invoice.
- What if the job is in a different province?
- Tax follows the place of supply, which for most jobs is where the work is done. CollabNorth warns you when the customer's province differs from yours, and you can change the place of supply on the invoice.
- Can I track my truck and tools?
- Expenses are sorted by T2125 line, including motor vehicle expenses. Capital cost allowance on equipment isn't worked out in the app yet, so add it yourself or with your accountant.
General information to help you keep your own records. It is not accounting, legal or tax advice. Confirm details with the Canada Revenue Agency or your accountant.