Using Exchange Rates for Canadian Retroactive Filings and Manual Data

When filing Canadian retroactive sales tax returns using manual data (i.e., not pulled from Stripe), LumaTax does not convert foreign currency into Canadian dollars (CAD) automatically. Here's how we handle these situations to ensure compliance and consistency.

How LumaTax Handles Exchange Rates

For retroactive filings and sales tax returns using manually uploaded data, LumaTax will use a fixed exchange rate for all transactions in a given return. This method ensures consistent and auditable calculations.

• We will communicate the fixed exchange rate to you prior to using it.

• You must approve the proposed exchange rate before we proceed.
  

Alternatively, you may provide your own exchange rate, along with the date for that rate, and we will use it to convert your transaction amounts into CAD.

When Manual Conversion Applies

Manual exchange rate conversion is only used for:

• Retroactive filings

• Sales tax returns based on manually uploaded data
  

If your data is being pulled from Stripe, you do not need to worry about this process. Stripe transaction data includes exchange rate information, and conversions will be handled automatically in all applicable sales tax filings.

CRA Guidelines on Exchange Rate Use:

This approach follows the guidance set out by the Canada Revenue Agency (CRA) in GST/HST Memorandum 3-6 (July 2018). According to the CRA:

“Where a registrant uses a particular day for the conversion of foreign currency…the registrant is to use the particular day consistently and for a reasonable period of time, such as one year.”

? You can read the full memorandum here:  CRA GST/HST Memorandum 3-6

Need help?

If you have questions about which exchange rate to use or how to provide one, please contact our customer care team. We’re here to help ensure your returns are accurate and compliant.