The HST Blog : Canada Harmonized Sales Tax Lawyer Cyndee Todgham Cherniak for Assessments, PST & RST Issues in Ontario, British Columbia & Quebec

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I am a big fan of anticipating a problem during a Canada Revenue Agency audit and solving the problem before it happens.  File opening forms may provide useful information to a CRA auditor.  The first thing they do is they inform the CRA auditor that you are diligent.  You took your GST/HST compliance responsibilities seriously.  You tried to ask the right questions in order to bill correctly.

A file opening form can be useful in recording the information that will allow you to determine whether the harmonized sales tax (HST) place of supply rules apply and at what rate you should be charging HST.

There isn't a single form that will work for all businesses - in other words, you would be wise to work with an HST lawyer or expert to develop the form and learn how to analyze the information on the form in a diligent manner.  If you have a billing policy, then you are more likely to get the answer right.

Some of the information that may be included on a file opening form (and I want to make it clear that this is not an all inclusive list) is:

1. Date
2. The correct legal name of the client/customer
3. If the client is incorporated, the jurisdiction of the corporation and the incorporation number
4. If the client is a partnership, the jurisdiction of the partnership and the partnership registration number
5. The head office address or the address at which the individuals are located who provide instructions to you
6. Name of the prime contact who will be giving instructions
7. The normal location of that person
8. Telephone number of the prime contact
9. Fax number of the prime contact
10. Email address of the prime contact
11. If different than 6, the name of the person who hired you
12. If different than 7, the normal location of the person who hired you
13. If different than 8, the telephone number of the person who hired you
14. Will you be providing (a) goods, (b) services, (c) real property, (4) intangible property, or (e) other
15. A short statement of the proposed work
16. If you are selling goods, the address to which goods will be shipped
17. If you are providing services in respect of real property, the address at which you will be providing the services or the location of real property at issue
18. Your client's/customer's GST/HST registration number

We would be willing to create a special file opening form for your business (for a fee to be determined based on the work involved - e.g., simple business would be $250 plus all applicable taxes).  We will ask more detailed questions about your business and add prompts for information that you will need to apply the HST place of supply rules (and ward away assessments).  We will teach you how to read the information so that you can charge the right amount of HST given your unique circumstances.  To prepare upfront, at the time of file opening, will in all likelihood be less expensive than a CRA assessment.

For more information, please contact me at 416-760-8999.  I am a Canadian sales tax lawyer.