Can you help with this Canadian GST/HST dilemma?
January 27, 2012 7:36 AM Subscribe
Canadian tax question: I quoted a client for a job, and neglected to specify whether GST/HST is included. They think the price should be understood as including GST/HST. I think it should be understood as excluding GST/HST. Is there some external standard to resolve this?
I am a freelancer in Canada. I generally charge GST/HST on the work I do.
I recently started some work for a client. I provided them a quote for the work (call it $1000). I carelessly neglected to mention that I'd expect GST/HST to be paid, on top of the quoted amount (ie: they'd pay $1000 + $130 = $1130).
Now the client feels that they should only pay the amount quoted. That is - that they should write me a cheque for $1000, not $1130, since $1000 was the figure I named. I think they should pay write a cheque for $1130 since I am obliged to collect GST, and in Canada, when I see a price for a good or service advertised, I generally assume that GST/HST will be added.
Is there any external standard we can appeal to, to help resolve our different perspectives? Is there some legal precedent, for instance, that says that, barring any information to the contrary, people should or should not expect GST/HST would be added to an advertised or agreed price?
I'm in Ontario, if that matters.
Any information much appreciated!
(Of course, the real lesson here is that I should be more careful when I provide quotes, and make clear that GST/HST applies. I won't make this mistake again...)