Configuration :

Create a second code for your deductible: Ex DB2 (commercial deductible) 

A) Bill the insurer
  • Full non-taxable amount (tick the line tax box in the product grid),
  • In negative Deductible (Ex DB2) WITHOUT activating it in the general information,

SEE Also


B) Bill the customer :
    • Invoice the full amount for the job completed with taxes,
    • Add a product "API" (Amount paid by insurance) WITHOUT taxes in negative.
The customer will therefore pay the deductible and taxes on the whole of the franchise. 


Repair or replacement 

17. The insurer may settle claims under a property insurance policy by repairing or replacing the damaged property. When the insurer purchases the repair services or replacement property directly, it is legally obligated to pay financial consideration and GST / HST in respect of those services or property. The insurer cannot claim an input tax credit (ITC) for the GST / HST paid or payable in these circumstances, since it does not acquire the services or the goods with a view to consuming them, using them or providing them in the course of its business activities. For more information on ITCs for insurers, see GST / HST Memoranda 8.1 General Eligibility Rules and 8.3 Calculation of Input Tax Credits as well as the GST Technical Information Bulletins  HST B-097 Determining Whether a Financial Institution is a Qualifying Institution for the Purposes of Section 141.02, B-098, Application of Section 141.02 to Financial Institutions That Are Qualifying Institutions, and B-099 Application of section 141.02 to Financial Institutions That Are Not Qualifying Institutions.

18. If the insured, rather than the insurer, acquires the repair services or the replacement property directly, then it is legally obligated to pay the consideration and GST / HST on the services or the property. The insured, if registered for GST / HST purposes, may be entitled to claim an ITC, provided that the insured acquires the services or property for the purpose of consuming, using or providing them in the course of its commercial activities and that he meets all other requirements for the ITC claim. Certain insureds, such as public service bodies, may be entitled to claim a rebate of the GST / HST paid or payable on the acquisition of the services or the goods. If the insured is entitled to an ITC or reimbursement, the insurer can exempt the GST / HST to offset the costs of repairing or replacing the property paid by the insured.