Ontario -GST

Hi Again,

After reading back on some past posts, I understand the GST and WSIB are not applicable to Day Home Care Providers, I have a silly question though...

My husband has a small business (sole propritor) and for him, for each invoice he is paid GST (Of course this is N/A for Home Daycare) also, we track any GST he pays out (i.e. supplies/materials, etc)

At the end of each quarter the difference between what he took in for GST and what he paid in GST is sent to the government (as it is always owing)

Now, my question, as a home daycare, you do not charge the GST to your clients, as it is not applicable, but what about he GST you paid for supplies/materials, etc?

Is it just a null thing that you can't calim? Or can you file a GST refund for that at each quarter?

I have a home based business too besides my daycare. For that business I have a HST number and collect GST/HST from all sales I make. Yes I send in the money collected each quarter minus the HST I pay on supplies to run the business.

For daycare since it is zero rated for HST meaning you don't charge it to your clients and obviously have nothing to submit. When you come to do your taxes you claim the cost of all of your supplies including the HST you paid on them so the total bill - ie the HST you paid is an expense for you.

In a sense it is the same for your husband just that he claims the HST as an expense on supplies he buys but then claims the reimbursement as income - all in the paperwork.

That makes perfect sense.. Thank you!