A partnership operates an engineering firm, providing fully taxable services. Which of the following statements is correct?

Question

Quizplus · Accepted Answer

As a provider of taxable services, the partnership is required to collect GST/HST from its customers and is eligible to claim input tax credits on eligible expenses. The partners are not individually responsible for the GST/HST liabilities of the partnership. However, if they incur expenses that are reimbursed by the partnership, they may be eligible for the Employee and Partner GST/HST Rebate. In order to collect and remit GST/HST, the partnership must register for a GST/HST account with the Canada Revenue Agency (CRA).

A Partnership Operates an Engineering Firm, Providing Fully Taxable Services