Tax Calculator for Travel Expenses

Tax Calculator for Travel Expenses
Advataxes automates the QST input recoveries at the rate of 25% for large businesses on restricted input tax refund for the period of January 1st, 2018 to December 31, 2018. For more details on this tax change please consult the article "QST Phasing out the Restricted ITR Starting on January 1, 2018".

Take into consideration the lowering of RITC in Ontario to 25% from July 1st 2017 to June 30th 2018 on specified properties and services for large businesses.

Calculate net recoverable GST ⁄ HST & QST for small ⁄ medium & large businesses on travel expenses incurred by employees. *

Business size
Select whether your organization is a large business or a small⁄medium business for GST⁄HST and QST purposes
Expense Type
Select the expense type that the employee incurred in the course of commercial activities
Jurisdiction
Select the Canadian province or territory where the expense was incurred
Date
Calculation will use today’s Canadian indirect tax rate
Amount
Enter the expense amount tax included or before GST, HST, QST (allowances are calculated on a tax included basis)
Tax Included
The amount should include Canadian taxes collected; GST, HST, QST, MANPST, SASKPST & BCPST.
GST / HST Paid
Calculates the GST / HST paid (to validate with receipt), or deemed paid for allowances, on the expense
QST Paid
Calculates the QST paid (to validate with receipt), or deemed paid for allowances, on the expense
Total
Total expense amount submitted by the employee
ITC
ITC is the input tax credit under theExcise tax act
ITR
ITR is the input tax refund under theQuebec sales tax act
RITC
RITC is the Recapture of input tax credit under theExcise tax act
Net
Refers to the net expense which equals the Total - ITC - ITR + RITC


Business size
Expense Type
Jurisdiction
Date 19/08/2018
Amount
GST / HST Paid
QST Paid
Total
ITC
ITR
RITC
Net
Sample Report from Advataxes
Advataxes is an employee expense software that automates the GST ⁄ HST & QST paid, GST ⁄ HST & QST recoverable and the recapture of input tax credits in Ontario and PEI, in the same manner as the tax calculator with the major exception that the precalculated GST/HST Paid and QST Paid are editable by users. Selecting an expense type, a jurisdiction and a date is the preferred system instead of the traditional one requiring all employees to select from a list of tax codes. This is a more efficient responsibility allocation structure. In the example below, you have a travel expense report for an employee of a large business. The employee selected a project number, which is linked to an account segment, and has identified which expense has been directly paid by the employer to the credit card company. The current expense report displays the recoverable taxes based on the exact method.
Click image to enlarge
 
 
* The tax calculator on travel expenses is done under the following assumptions; the person is a GST/HST and a QST registrant. The ratios of commercial activities of the person are 100%. The large business calculation automates the calculation of the recapture of input tax credits (RITC) in Ontario and PEI and restricted input tax refund in Quebec on meals and allowances under paragraph 236(1) of the Excise Tax Act and section 457.1 of the Quebec Sales Tax Act and gas for cars as motive fuel other than diesel fuel for used in a vehicle of less than 3000 kg that is required to be licensed on a public highway. The tax calculator on travel expenses applies the exact method for calculating input tax credits and input tax refunds. The tax calculator is not designed for registrants using the quick method or similar one where no tracking of taxes on purchases is necessary. The tax calculator does not integrate the provisions of the Indian Act or the provisions of the First Nation Goods and Services Tax Act. The tax calculator should not be a substitute to obtaining a consultation on Canadian tax matters. It is actually advisable that users seek technical expertise to understand tax concepts that the tax calculator is automating.