Canada interest on invoices taxable to customer?

[jfelectric]

i am a contractor in canada. British Columbia. i charge 24% annually for overdue invoices. i have my first client that is overdue. does the interest that i charge them increase their HST amount? (is the interest that they pay subject to additional HST?)

thanks everybody.

 

[jfelectric]

so i talked to a CA here in my hometown and they said that i do not charge a customer HST on interest charges.

for example. i am owed 100, late by 1 month.

100*1.12 = 112.00 --original amount plus HST
100*.02 = 2 --plus interest

=112 +2 = 114.