As a small business owner in Saskatchewan, it’s crucial to understand your responsibilities regarding the Provincial Sales Tax (PST). If you’re already a PST registrant or unsure if you should be charging PST on your goods and services, you can avoid being a victim of penalties and charges through a piece of concrete information, especially during a PST audit.
Learn More About PST
Are you unfamiliar with the basics of PST in Saskatchewan? We’ve covered the essentials in detail in our previous blog here.
Facing a PST Audit
At some point, your business might be selected for a PST audit, especially if you’re actively operating in Saskatchewan. While the prospect of an audit can be daunting, it’s important not to panic. The purpose of an audit is to verify that you’re correctly applying and remitting PST on all taxable goods and services.
PST Audit Methods
The audit methodology depends on several criteria but you could be given two options: a Field Audit or a Desk Audit. A Field Audit involves the auditor visiting your business premises, whereas a Desk Audit allows you to submit the necessary documents electronically. Although the Desk Audit is more flexible, it can be time-consuming as you may need to scan and submit hundreds of receipts, invoices, and bank statements. For more details on what to expect, visit the PST Audits and Penalties
To navigate a PST audit smoothly and avoid common mistakes, consider the following tips:
- Understand your provincial regulations guiding sales tax. For Saskatchewan residents visit Provincial Sales Tax Return
- Hire a Professional Bookkeeper: Engaging a professional bookkeeper can ensure that your records are accurate and reduce the risk of errors during an audit.
- Avoid Late Filing: Ensure you file your PST returns before the due date to avoid penalties and interest.
- Apply PST Correctly: Ensure you’re charging the correct amount of PST on all taxable goods and services. Miscalculations can lead to significant issues during an audit.
- Timely Response to Auditor‘s Request: Provide the required documents promptly, and avoid delay which could lead to possible penalties and interest charges afterward.
Need Assistance?
If you are unsure where to start or how to prepare for a PST audit, we are here to help. Contact us today for expert bookkeeping services tailored to your business needs.
Visit us at www.nafbookkeeping.ca or email us at nafbooksservices@gmail.com We are just a click away!