Using Stored Credits to Reduce Future Filing Payments

We’ve introduced a new feature that lets you apply stored credits to reduce your payment amount during future filings. Adding input credits is now available in Canada and European countries. This article walks you through how to view and apply your available credits and explains how this works across jurisdictions.

💡 Key Points:

• Canada and the EU: You can now add new credits for Canada Federal and the EU filings.

• Reduce Payments: Use credits to pay for future Canada Federal tax filings.

• View Credits Easily: Check your available credits on the registration and filing details pages.

What Are Input Credits

Input credits in Kintsugi (often referred to as Input Tax Credits or ITCs) are essentially a way to reduce your tax liability by accounting for taxes you have already paid on business-related purchases. In the context of Kintsugi’s automation platform, these credits are tracked and applied to ensure you only remit the "value-added" portion of the tax to the authorities.

When a tax filing is generated, Kintsugi’s system automatically scans your registration for any available input credits related to that specific jurisdiction. These credits are then applied to the filing automatically, reducing the final amount you owe without requiring manual calculations or data entry.

This ensures that businesses avoid overpaying taxes and maintain accurate reconciliation between their payables and receivables. The process is designed to be "hands-off"—once the credit is added to your account or registration, the platform handles the detection and deduction during the remittance cycle.

How to View Credits

To view credits on the Kintsugi app, follow the steps below:

1. Navigate to the Registrations tab.

2. Find the country that you want to view credits.

3. Click the kebab menu and select "Credit." Then you will see a side panel showing the available credit, if there is any. It will appear like this:

How to Add Credits

Adding credits is easy. Check How to Add Input Credits for Canada and the EU for the complete process.

Using Credits During Filing

You do not have to do anything to use the credits that you have just added in a certain country. Kintsugi will automatically apply it to your filings.

To see if the credits apply, follow the steps below.

Step 1: Navigate to Filing Details

Once you’ve created a filing, navigate to the Filings tab. Look for the filing for that specific country, and click its row.

Step 2: View Applied Credits

A side panel will open with your filing details, including a line item showing how much credit was utilized to reduce the payment.

Summary

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