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Hi Allan,
I have some basic questions around account receivables and HST payments. I am not an accountant.
I paid HST on account receivables for Q4/2019.
When 2020 stared the account receivable (from Q4/2019) I entered as revenue and I paid HST on it...So looks like I paid HST twice on the same amount - once in Q4/2019 (account receivable) and second time in Q1/2020 (when account receivable arrived).
The way I see it:
Q4/2019 - HST paid on account receivable - OK
Q1/2020 - I had to deduct the amount receivable from Q1/2020 and pay HST on the remaining balance.
I just need professional opinion on this subject,
Thanks a lot for you help.
HST is payable on accounts receivable in the 4th quarter. However, you do not have to pay HST again when the accounts receivable is collected. Do not subtract Q4 HST paid on accounts receivable from Q1 in the subsequent year.