XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: CA only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Bill raised with supplier not registered for GST/HST" XBert checks whether bills created for suppliers in your accounting software are linked to valid GST/HST-registered businesses. This ensures you're not incorrectly paying or claiming GST/HST where it cannot be lawfully applied or refunded.
What it does
This XBert scans all bills issued to suppliers within your accounting system and:
Identifies if the supplier has a known GST/HST status that is inactive or missing
Detects bills that include GST/HST amounts despite the supplier not being registered
Flags these transactions so you can update or correct the bill before processing payment or claiming any tax credits
How it works
XBert uses the following rules to identify problematic bills:
The bill is in 'DRAFT', 'SUBMITTED', or 'AUTHORISED' status
The bill includes a non-zero GST/HST amount
The supplier is matched to a known Canadian entity but is not currently GST/HST-registered
This helps catch cases where businesses are still charging GST/HST but shouldn't be, or where incorrect contact setup in your system allows for invalid GST/HST claims.
Example/Use Case
Lisa from Skyline Design raises a bill in Xero from a regular supplier she’s worked with for years. The bill includes $240 GST/HST on a $1,600 charge. However, the supplier had recently ceased being registered for GST/HST. Because the status wasn’t updated in the accounting software, Lisa processes the bill as usual and claims the tax. Weeks later, the CRA reviews her return and rejects the claim, resulting in an unexpected repayment notice. Had Lisa received the XBert alert, she could have verified the supplier’s status and requested a revised invoice exclusive of GST/HST.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
Canada only.
Processes
This alert falls under the ‘Purchases (AP)’ category.
To action:
Review the bill and the supplier's contact record in your accounting software
Use the CRA GST/HST registry to verify the supplier’s current registration status
Request a revised invoice without GST/HST if they are no longer registered
Update the tax rate or bill total as needed before payment
By ensuring suppliers are correctly marked as registered or unregistered for GST/HST, you prevent overstated tax credits and reduce audit risk.