I am a little confused by your question. If you have the invoice for expenses why wouldn't record them when you record the invoice? If you are to pay the subcontractor the expenses, wouldn't those expenses be billed to you on the invoice?

If no receipt is provided, I wouldn't pay. But if that's not an option, you need to validate whether they are in fact legitimately able to charge you those taxes before you start entering made up data.

Hi Richard
Yes, I am recording the expenses when I enter the subcontractor invoice, but the expenses are showing up when I produce the T5018 report which I don't want. Would I have to set up the expenses under a separate invoice? Sorry I should have elaborated a bit more

And I do agree with the validation on the expenses, I'm trying to get this client to not pay unless receipts are provided (baby steps for them)

Thanks
Janice

Yes, you should have probably lead with "this is a T5018 issue" and I would not have responded.

I don't have to do any T5018's so someone else will have to help you out on this one.

From a brief review of the CRA website here it says

Cra said:

Goods-only payments do not have to be reported. Mixed service and goods payments are reported if there is a total annual service component of $500 or more.

I have never discussed this with the CRA to validate exactly what this means, so someone else should probably provide some help for you on this.

Yes, you should have probably lead with "this is a T5018 issue" and I would not have responded.

I don't have to do any T5018's so someone else will have to help you out on this one.

From a brief review of the CRA website here it says

Cra said:

Goods-only payments do not have to be reported. Mixed service and goods payments are reported if there is a total annual service component of $500 or more.

I have never discussed this with the CRA to validate exactly what this means, so someone else should probably provide some help for you on this.

Sorry thanks Richard
Hopefully someone else can help :)