Hi,
I am starting up a private daycare in Montreal and we will open doors in October.
I am trying to figure out the right structure so that I can rebate GST paid for expenses such as rent, grocery, material etc... My accountant didn't provide much help so I am hoping you can provide some guidance. I have been told that I need to setup an operating company that has GST/QST numbers that pays the expenses and invoices them to the daycare company and then rebates the GST. How would that happen exactly?
Let's say my rent is $10,000 per month + $1,500 GST/QST
The operating company pays $11,500 to the landlord
How much would the operating company invoice the daycare company? Is it again $10,000 + $1,500 GST/QST and then the operating company claims the GST amount ($500) as daycare operating company?
Also, there are no exemptions on QST as far as I know, is that correct?
I appreciate some guidance.
Thanks