Small business owners frequently find it difficult to file for both the Harmonised Sales Tax (HST) and the Goods and Services Tax (GST). Knowing when your company needs to charge GST/HST is crucial, as are all the filing, reporting, and remitting requirements related to regulations. There may be late fees if tax deadlines are missed.
Registration and Filing for GST/HST
Even if there is no tax due, all businesses with revenues of more than $30,000 in any one calendar quarter and in the previous four consecutive calendar quarters are required to register for GST/HST and file a GST/HST return.
The Corporation will start to charge penalties and interest on any returns or amounts that they have not received if your GST/HST return is not filed by the return's due date, which can be monthly, quarterly, or annually. For new and small businesses, this can result in needless expenses and headaches.
Invoice Frequency
The amount of your taxable sales determines the three filing frequency levels.
|
Annual Taxable Sales |
Filing Frequency |
|---|---|
|
$1,500,000 or less |
Annual (quarterly or monthly are optional) |
|
$1,500,001 – $6,000,000 |
Quarterly (monthly is optional) |
|
Over $6,000,000 |
Monthly |
Location and Type of Supply
You must identify the kind of goods or services you are selling as well as the location where they are provided in order to determine which GST/HST rate to apply.
In Canada, certain products, like groceries and supplies for farming or fishing, are zero rated, meaning there is no GST or HST applied. Certain other items are not included in this list, such as long-term home rentals and the majority of health, dental, medical, child care, and educational services. It might be able to claim input tax credits for any GST/HST paid on exempt services. Furthermore, some businesses, like municipalities or charitable organisations, might not be required to charge GST or HST. Most other items and services are subject to taxes.
Rates of GST/HST on Taxable Items
The relevant GST/HST rates can be ascertained once the nature of the goods and services as well as the location of supply are specified.
| Place of Supply | Rate | Type |
|---|---|---|
|
Alberta, Nunavit, Northwest Territories, Yukon |
5% | GST Only |
|
British Columbia Note 1 |
12% | GST + PST |
|
Manitoba Note 1 |
13% | GST + PST |
|
Ontario |
8% | HST |
|
New Brunswick |
10% | HST |
|
Newfoundland and Labrador |
10% | HST |
|
Nova Scotia |
10% | HST |
|
Prince Edward Island |
10% | HST |
|
Quebec Note 2 |
14.975% | GST + QST |
|
Saskatchewan Note 3 |
11% | GST + PST |
Reduce Your Stress About GST/HST
Our bookkeeping packages include accurate GST/HST return preparation and filing, whether you need to file quarterly, monthly, or annually. We guarantee that you are fully compliant with all applicable laws. Make an appointment with us right now to enrol in one of our packages, and let us take care of all your bookkeeping needs so you can relax.
