Do bookkeepers charge HST?

by Kim
(Scarborough, Ontario.)

I live in Ontario and am wondering do bookkeepers and accountants charge HST on their services? And if they do, do they charge 5% or the full 13%?

image of fancy scroll lines

Hi Kim,

I want to say "Yes, bookkeepers and accountants charge HST in BC and Ontario." But I decided to check.

BC's HST charged on accounting services can be found in the report What's Taxable Under the HST and What's Not? at .

I was surprised when I visited a similar page for Ontario at . Accounting services were not listed. This doesn't mean they don't attract HST, just that they weren't put on this particular list.

I'm guessing accounting and bookkeeping services do attract HST in Ontario. If you make a quick call to the CRA, they can easily verify that for you.

With regards the correct rate to use:

The service is going to attract GST or HST. They are two different rates.

If you reference my GST/HST rate summary table, you will see that the current GST rate is 5%.

This means that the HST rate cannot possibly be 5% because the HST rate formula is:

federal portion + provincial portion = HST
where federal portion = GST and provincial portion = HST - GST

P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.

Comments for Do bookkeepers charge HST?

Click here to add your own comments

HST ~ yes, in Ontario!
by: Ursula

I am a bookkeeper in Ontario.

I registered with CRA last year.

Bookkeepers are to charge 13% HST on their services.

by: Lake

Thanks Ursula for taking the time to confirm that accounting and bookkeeping services attract HST in Ontario.

only after you reach the limit
by: Kyle

Bookkeeping services do not need to add HST in Ontario to their bills UNLESS the total income reaches the HST limit for income (which is $30,000 or so).

If you don't make that much (gross) you don't need to register for HST, thus you are not obligate to collect it from clients.

section divider

An excellent point Kyle.

However, if you voluntarily became an HST registrant even though you earned under $30,000 so you could claim your start up and business expense ITCs, you must collect HST.

BC Returns to PST
by: Lake

Now that BC is no longer charging HST but has moved back to PST + GST, bookkeepers in BC only charge GST.

Services, with some exceptions such as legal services, do not attract PST.

See the Guide to PST in BC series of chats to learn more.

Click here to add your own comments

Return to Unanswered Bookkeeping Questions.

Enjoy A Tea Break With
Me Today. Let's Chat!

Use the search feature to quickly find the
information you're looking for.

Like this page? Please let Google
know by clicking the +1 button.

 Keep Your  eDocuments Safe And Secure… $7 USD

Your Learning Curve!

Buy Now

Warm up your tea cup and check out these chats ...

Click on image above to read the chat.

Purchasing These Products Through My Links Helps To Support This Site

Click on image above for my review.

Join Me On Facebook

Help support this site by "liking" me! Here's where I post current information.

Listed Under Websites NOT Local Business.
This website is not associated with the business operating in Bonnyville AB.

A Handy Reference

Buy Now