TaxCycle Home | Products | Pricing | Events | Documentation | Support | Blog

Bad Debt - Write off (current period) - HST


#1

Does the HST of a write off from a bad debt go on line 103 or line 107?

If anyone has specific references that would be great.

Thanks


#2

Lets assume you only have 1 sale for $100 + $5 GST and no ITC’s, and the sale turns about to be on bad credit. This is how the CRA wants the GST return completed:

Line 101: $100
Line 103: $5
Line 105: $5

Line 106: $0
Line 107: $5
Line 108: $5

Line 109: $0

If you collect on the sale in a future period, and no other sales or ITC in the period you collect.

Line 101: $0
Line 104: $5
Line 105: $5

Line 106: $0
Line 108: $0

Line 109: $5