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Avalara Help Center

How do I add Canadian Input Tax Credits to my filing?

Overview

I have to add input tax credits to my Canadian filing for Avalara,

Environment

Avalara Returns

Resolution

Input tax credits are given to businesses to recover taxes paid on purchases related to business activity. The Canada Revenue Agency has more information about input tax credits, including how to determine if you're eligible for them and what records and receipts you need to use to support your claim.

To add input tax credits to your Canadian filing in Managed Returns, add the amount of your credits in the Tax Details and Adjustments section of your Quebec or GST/HST returns.

  • Go to Returns > Manage and Approve Returns. Find the region where you want to adjust tax liabilities and then select Manage Returns.
  • Find the return you want to adjust and then select Tax Details and Adjustments.
  • Select Add Adjustments and enter the input tax credit amount as a negative figure.

NOTE: If you have the Quebec Detailed report setup to report both GST/HST and Quebec taxes, please create a case in your AvaTax account to provide the breakout of the ITC amounts.