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Showing the Harmonized Sales Tax on a Statement of Account

As provided by rule 3.6-3 of the lawyers' Rules of Professional Conduct or subrule 5.01(4) of the Paralegal Rules of Conduct, the statement of account a lawyer or paralegal delivers to a client must clearly and separately detail the amounts charged as fees and those charged as disbursements. You should also include as a separate line on the client bill the HST. An example is included below.

For discussion and document preparation for settlement agreement between Ms. Andrea Smith and Mr. George Smith, provided on July 2, 2014:

Our Fee:                                                                            $ 1,000.00
HST:                                                                                           130.00
Total Fee:                                                                          $ 1,130.00

GST/HST registration #123456789

Your GST/HST registration number, which may be referred to as your business number, must also be displayed on receipts, invoices and contracts totaling $30 or more. To ensure that your clients are aware that the HST applies to your fees and certain disbursements, you may wish to discuss this at the outset of the retainer and include it in either your retainer letter or agreement.

Additional Resources:
Canada Revenue Agency, Goods and services tax/harmonized sales tax (GST/HST)
Harmonized Sales Tax (HST)
Disbursements and the Harmonized Sales Tax (HST)
LawPRO Transaction Levies and the Harmonized Sales Tax (HST)
Withdrawing the Harmonized Sales Tax (HST) From Trust
Books and Record Keeping Requirements for the Harmonized Sales Tax (HST)

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