We are in the process implementing the T&E solution for canada.
My question is on canada taxes since in US, there is no tax recovery for all reimbursable expenses.
So my question, how it is calculation and what will be reimbursable amount for the traveller.
In US, i spend 100$ for a hotel stay in georgia, I get 100$ back.
In CANADA, based on high level discussion, taxes will be applied for certain expenses. So I am asking if a business traveller spends 100$ for a hotel stay in Ontario, will the traveller get 100$ back? Definetly I know taxes will be applied. My question, what is the reimbursable amount the traveller will get!! Some high level idea on tax calcuation for canada will give me a good idea.
I second Salman's reply.
The traveller should receive $100 in your instance. Let me give an example.
Hotel Expenses = $100
Taxes = $10
Total Amount Paid = $110
In this case, the traveller should be reimbursed by $110. But when he enters in the expense claim he should enter only $100. The tax amount should be calculated automatically and posted in the system to the credit of employee.
Trust this helps.