Understanding T5018 Processing for Foreign Suppliers

If you make payments to suppliers with mailing addresses outside Canada, you might be required to identify them as foreign suppliers and submit T5018 returns. A foreign supplier is eligible for a T5018 form if the address book record contains 1, 2, or 6 in the Person/Corporation Code field.

If a supplier master record is specified as foreign, but does not include an individual or noncorporate designation, the system issues the error message Invalid Person/Corporation Code when you run the Build T5018 Workfile - A/P program. To correct the error, you must enter P or N in the Person/Corporate Code field in the address book record for the supplier and rerun the program. The values in the Person/Corporation Code and Payables fields are used for tax purposes only; they do not affect any other software process.