Please listen below to an interview I gave at the 2016 IPBC Ignite Conference with Voice America
Category Archives: Business Services
Telpay – Our Clients are Talking!
Is it a Debit or a Credit? Cheat Sheet
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How to Handle early-payment discounts and late-payment surcharges with your Customers
If you offer an early-payment discount on credit sales, you have to charge GST/HST on the full invoice amount even if your customer takes the discount.
You operate a business in Manitoba and the invoice shows the price of goods as $100 plus $5 GST. The credit terms of the invoice give the customer a 2% discount if the customer pays within 10 days. GST is $5, even if your customer takes the discount. The customer pays $103 [$100 plus $5 GST minus $2 (2% of $100) early payment discount].
If you charge late-payment surcharges, you do not charge GST/HST on the surcharge. GST/HST is payable only on the original invoiced amount.
If you charge $5 for the late payment on goods invoiced at $100, GST does not apply to the late charge. Therefore, GST is still $5 and the customer pays $110 ($100 plus $5 GST plus $5 late charge).
When you invoice an amount that is already net of the early payment discount, charge GST/HST on the invoiced amount.
You send a customer an invoice with instructions to pay $108 if payment is made by March 23, or to pay $118 if payment is made after March 23. You charge GST/HST on the reduced invoiced amount of $108, even if the customer makes the payment after the March 23 due date.
5 Steps to Reduce Small Business Fraud and Protecting Your Money!!
Small Business owners must put this best practices in place to protect their money from Fraud.
Soma Small Business Solutions
Solutions for Small Business
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