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Withdrawing the Harmonized Sales Tax (HST) From Trust

HST collectible is not considered client trust money and should be drawn from your trust account when billed to the client, provided that you hold adequate funds in trust for that client. If you are concerned about having sufficient funds available when the HST is due, you may transfer these funds to a separate interest bearing general account until they must be remitted. However, any other money for future expenses such as registration fees, are client funds and must remain in the trust account in the client's name until disbursed. Note that once you have billed a client for services that are subject to the HST, regardless of whether the client has paid for those services, the HST must be remitted in accordance with the Canada Revenue Agency's schedule.

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)

Showing the Harmonized Sales Tax (HST) on a Statement of Account

Books and Record Keeping Requirements for the Harmonized Sales Tax (HST)

Terms or Concepts Explained