HST Processing
Section titled “HST Processing”For US Vendors
Section titled “For US Vendors”- Anthropic charged HST. Cursor did not.
- What’s happening is that one vendor (Anthropic) is registered to collect Canadian HST and issued you a proper Canadian tax invoice, while the other (Anysphere/Cursor) did not charge HST and did not provide a Canadian GST/HST number—so you generally can’t claim an ITC on it.
How to record these properly for HST in QuickBooks (practical bookkeeping)
Section titled “How to record these properly for HST in QuickBooks (practical bookkeeping)”1) Anthropic (HST charged) — record with recoverable HST (ITC)
Section titled “1) Anthropic (HST charged) — record with recoverable HST (ITC)”- Enter it as a normal expense (or bill/credit card expense), category like Software subscriptions / Online services.
- Make sure the tax on the transaction is coded to HST (13%) (or your applicable HST code), and the CAD 3.64 posts to GST/HST paid on purchases (Input Tax Credits) (wording varies by chart of accounts).
- Keep this receipt as support: it includes a GST/HST registration number, tax rate, and tax amount—this is what makes the ITC supportable.
Result: You expense the net amount and claim the HST back as an ITC on your HST return.
2) Cursor / Anysphere (no HST charged) — record as tax-exempt (no ITC)
Section titled “2) Cursor / Anysphere (no HST charged) — record as tax-exempt (no ITC)”- Record the expense to the same kind of category (software subscriptions).
- Use a tax-exempt / out-of-scope tax code on the transaction (so QuickBooks doesn’t calculate Canadian HST on it).
- Do not post anything to Input Tax Credits, because the receipt shows $0.00 tax.
Result: The full amount is just an expense; there is no HST to recover.
Is Anysphere “supposed” to charge you HST?
Section titled “Is Anysphere “supposed” to charge you HST?”Possibly—but that’s a vendor compliance question, not a QuickBooks setting. For cross-border digital subscriptions to Canadian customers, some US vendors must register and collect Canadian GST/HST once they exceed the $30,000 CAD threshold of taxable Canadian sales. Your receipt shows no Canadian GST/HST registration number, which is consistent with a vendor that is not registered (whether because they’re below the threshold or not compliant).
The one thing to do next
Section titled “The one thing to do next”Ask Cursor/Anysphere support: “Are you registered for Canadian GST/HST? If yes, please provide your GST/HST number and re-issue invoices charging the correct HST for my Canadian billing address.”