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Glossary

GST/HST Return Working Paper Defined

A GST/HST return working paper is the prepared summary a contractor or bookkeeper uses to fill in the CRA GST34 return for one filing period. It collects the four numbers the return actually asks for: line 101 (total sales excluding GST/HST), line 103/105 (GST/HST collected or collectible on those sales), line 106/108 (input tax credits, the GST/HST paid on business expenses), and line 109 (net tax, the difference you remit or get refunded). On the standard accrual basis, an invoice belongs to the period it was issued in, paid or not, because the tax becomes collectible no later than the invoice date. A working paper is filing prep, not a filing: the return itself still gets submitted through CRA My Business Account or your accountant.

Why it matters to Canadian contractors

  • Your filing period is set by revenue: annual under $1.5M in taxable supplies, quarterly from $1.5M to $6M, monthly above $6M. Most trades contractors file annually or quarterly, and each return needs these same four numbers for exactly that period.
  • Line 103 is collectible tax, not collected cash. An invoice you issued in March belongs on the Q1 return even if the client pays in May. Contractors who report only what landed in the bank understate early and overstate later.
  • Input tax credits are the part most contractors leave on the table. Every dollar of GST/HST paid on materials, fuel, tools, and subscriptions reduces line 109 directly, but only if it was tracked during the period.
  • A clean working paper is what your accountant or bookkeeper actually wants at filing time. Handing over four reconciled numbers with the invoices and expenses behind them turns a billable afternoon into minutes.

Common mistakes and pitfalls

  • PST is not GST/HST. In BC, Saskatchewan, Manitoba, and Quebec, the provincial tax is remitted separately and never appears on the GST34: PST collected stays off line 103, and PST paid on expenses is not an input tax credit.
  • In GST+PST provinces only the 5% federal portion of the tax on a sale belongs on the return. Reporting the combined 12% overstates line 103 and your remittance.
  • Draft and cancelled invoices do not belong in the working paper. A draft was never issued, so its tax never became collectible.
  • Holdback amounts can defer when tax is payable, and adjustments like bad debts, capital purchases, and rebates are not part of a basic working paper. Verify with your accountant before filing.

Related

This glossary entry is for general information only and does not constitute legal or tax advice. Canadian tax and construction law rules vary by province and contract. For advice specific to your situation, consult a licensed professional.

Glossary: HST Input Tax Credit→CRA deadline calendar→Glossary: GST/HST instalments→