You would like Avalara to file Canadian returns on your behalf and need to know the steps to achieve this.
Before Avalara can accurately and timely file Canadian returns on your behalf, there are a few key details that need to be setup with the jurisdictions and with AvaTax.
For your first filing with Avalara, new Canadian returns must be requested by the 20th of the month of your first tax period. For example, add a new return by January 20th for your January return, which is filed in February. This allows Avalara time to validate your information and build your liability worksheet.
After implementation and Avalara has already began filing returns for any jurisdiction on your behalf, you can request to add, edit or expire Canadian returns by the last day of the month prior to the first filing month. For example, if your filing frequency changes in April, you need to request an updated filing calendar by March 31st for Avalara to make the change.
In order for Avalara to pay your Canadian sales tax returns on your behalf, you need to authorize a separate power of attorney specifically for Canada.
All Canada return requests must be submitted to Support by opening a support case.
Please make sure you are registered with the applicable jurisdictions prior to contacting Avalara to begin your Canadian setup. If you are unsure if you are registered or where you should be registered to collect and remit GST/HST, PST, or QST, please contact the jurisdictions directly.
Setup Online Filing
While all jurisdictions offer online filing, some jurisdictions require it. To help ensure returns are filed as soon as possible and to reduce paper returns, it is best to setup an online filing account with the jurisdiction. Please make sure this step is completed prior to contacting Avalara to begin your Canadian setup.
- When providing the login credentials to Avalara, please include the 4 digit access code.
- When creating your online account, please make sure Pre-Authorized Debit (PAD) is active.
- When providing the login credentials to Avalara, please include the answer to the security question.
Report in Canadian Currency (CAD)
Avalara requires all transactions destined for locations within Canada to report in Canadian currency (CAD). This helps ensure that your return is filed in CAD. If you are posting transactions in USD, you will need to revise your process to allow for Canadian transactions to post in CAD.
Fund Liabilities in Canadian Currency (CAD)
After you have submitted your request to add Canadian returns to be filed by Avalara, Avalara will provide a Funding Power of Attorney (POA) for this process. Avalara requires all liabilities to Canadian jurisdictions be funded in Canadian currency (CAD). When funding your Canadian liabilities to Avalara, please ensure this is done in CAD. The deadline to have the Canadian Funding POA signed is the 5th of the month prior to filing. For example, March returns filed in April will require to have a Funding POA signed by April 5th.
NOTE: Avalara does not perform currency conversion. Most accounting software support foreign currency to achieve this but an alternative would be to calculate the currency conversion then import your transactions with the correct amount of tax and currency label. For information on currency conversion to CAD, please review the Canada Revenue Agency documentation for Conversion of Foreign Currency.