reporting hst on currency gain/loss

From the time a foreign currency sales is posted to paid the currency rate increased causing a currency gain which QB automatically accounted for making the entry in the currency gain/loss account.  What about the HST on the currency gain?  Is this a self calculated amount per period once currency gain/losses are calculated?

Answer

A gain or loss on currency is not subject to GST/HST (in Canada) - it would be an 'exempt' type transaction if anything was recorded.

However if you charged (or paid) GST/HST to a Canadian customer/vendor based on a foreign currency invoice or bill (which would be rare), then there might possibly be an issue with the amount of GST due to CRA if these was a significant shift in currency value between the document date and the cash date - but I have never actually seen that accounted for.

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