Harmonized Sales Tax (HST)

If the revenues for your law or legal services practice exceed a certain amount you must register with the Canada Revenue Agency (CRA) and collect and remit the Harmonized Sales Tax (HST) on billings and disbursements. You will be required to remit HST monthly, quarterly or annually depending on your level of income. HST is payable by your clients on your fees and on some of your disbursements. There is an exception for non-resident clients. You can obtain more information from the CRA via their website or by telephone through the CRA's Business Inquiries Line at 1-800-959-5525.

Lawyers and paralegals should consider contacting the CRA directly at the number above to confirm how the HST applies to specific legal services and disbursements, and consulting with an accounting or tax professional to discuss how to properly implement the HST within their internal accounting and invoicing systems.

 

Additional Resources:

Canada Revenue Agency, Goods and services tax/harmonized sales tax (GST/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

Withdrawing the Harmonized Sales Tax (HST) From Trust

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