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How to Add Input Credits for Canada and the EU

Updated 3 months ago

When your business pays sales tax or VAT on expenses—such as inventory purchases, shipping costs, or professional services—you are often entitled to a credit. In Canada, these are Input Tax Credits (ITCs); in the EU, they are known as Input VAT.

Instead of waiting for a refund check from the government, Kintsugi allows you to "input" these amounts into our platform to reduce liability. We then automatically apply them against the taxes you’ve collected from your customers, reducing your final payment.

Here’s how to Add Input Credits on the Kintsugi App

  1. Log in to the Kintsugi App.

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  1. Navigate to the Registrations tab.

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  1. Look for the jurisdiction where you want to add credits and click the kebab menu icon (three vertical dots), and you will see two options: Credit and Deregister. Click Credit.

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  1. Click the ‘New’ button that you will see in the side panel.

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  1. Fill the form. Click the down arrow button to select the country and fill in the Credit Amount. Please note that credits have expiration dates. Expiration date is optional, but it is set to 3 years by default. Click the Save button to complete the process.

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  1. Once the credit is added successfully, it will appear as below.

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Note: When a filing is created, our system automatically scans the registration for any available credits and applies them for you. No manual action is required—just ensure the credit is added to the account, and we’ll handle the rest.

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