Record the allowances you paid

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Find the payer card in Reports

With Canada chosen as the country, Reports shows Canadian payer GST/HST on allowances. It is payer-wide, so clear the vehicle filter. The card says Enter a paid allowance to calculate the payer's credit until you add one.

1. Open Reports and clear the vehicle filter.
2. Find Canadian payer GST/HST on allowances.
3. Tap Edit Canadian allowance payments.

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Enter each payment

Keep the payer, employee, amount, reporting period and purpose with the payment record. A fixed allowance or a reimbursement for the same vehicle use does not qualify under this calculation.

1. Tap Add allowance payment.
2. Enter the Payer name, the Recipient name, the Payment date, the Amount actually paid (CAD) and the Paid business kilometres.
3. Add the Reporting period and the Allowance purpose. Answer the Section 174 conditions.

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Read the payer's credit

Under Payer input tax credit, enter the Commercial activity share (%) and the GST/HST registration number. Then allocate every paid kilometre by province.

If at least 90% of vehicle use was in one HST province, that province's rate applies. If at least 90% was split across HST provinces, the lowest of those rates applies. Otherwise GST applies.

The Calculation section then shows the effective mileage rate, the GST/HST fraction and the GST/HST deemed paid.

• Own car for work in Canada