XBert Type: Standard
Accounting Software: Xero, MYOB, QuickBooks
Country Restriction: Canada only
Risk Type: Tax Risk
Business Function: Purchases
Overview
The "Bill raised with supplier not registered for GST/HST" XBert checks bills that charge GST/HST and confirms the supplier was actually registered for GST/HST when the bill was raised. This helps you avoid claiming input tax credits you are not entitled to, which can lead to repayments and penalties if the Canada Revenue Agency (CRA) reviews your return.
What it does
This XBert scans the bills in your accounting software and matches each supplier against the CRA business register. For every bill that charges GST/HST, it checks whether that supplier was registered for GST/HST on the date the bill was raised.
How it works
This XBert raises an alert only when all of the following are true:
The bill is in Draft, Submitted, or Authorised status. Voided and deleted bills are ignored.
The bill charges a GST/HST amount greater than zero. Bills with no tax are ignored.
The supplier is matched to a Canadian business by an exact business number match, so loose name-only matches are excluded.
That business was not registered for GST/HST on the date the bill was raised.
The check uses the bill date, not today's date. If a supplier was correctly registered when the bill was raised and only cancelled its registration later, the bill is not flagged. If XBert cannot confirm the supplier's registration status, it does not raise an alert, so you only see cases it can stand behind. Where a supplier has more than one matching bill, they are grouped into a single alert.
Example/Use Case
Lisa from Skyline Design raises a bill in Xero from a supplier she has used for years. The bill charges $240 GST/HST on a $1,600 service. According to the CRA register, that supplier was not registered for GST/HST on the date of the bill, so it should never have charged the tax. Without this alert, Lisa would pay the bill and claim the $240 as an input tax credit. Weeks later the CRA reviews her return, disallows the claim, and issues a repayment notice. With the XBert alert, Lisa checks the supplier, requests a revised invoice with no GST/HST, and avoids the repayment.
Accounting software
Xero, MYOB, QuickBooks
Which countries it supports
Canada only.
Processes
This alert falls under the Purchases business function. To resolve it:
Open the flagged bill and the supplier's contact record in your accounting software.
Check the supplier's GST/HST registration status on the CRA register for the bill date.
If the supplier was not registered when the bill was raised, request a revised invoice with no GST/HST charged.
Update the tax treatment, tax amount, and bill total to match the corrected invoice before paying.
If you confirm the supplier was in fact registered, correct the contact's tax details in your accounting software so the record is accurate.
Once the bill is corrected, mark the XBert as resolved.
Keeping suppliers' GST/HST registration accurate prevents overstated input tax credits and reduces audit risk.