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How to File GST/HST in Canada: A Step-by-Step Guide

How to File GST/HST in Canada: A Step-by-Step Guide

The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) are taxes that are levied on most goods and services in Canada. If you are a business that sells goods or services in Canada, you are likely required to register for GST/HST and collect the tax from your customers.

This blog post will walk you through the process of registering and filing for GST/HST in Canada.

Step 1: Determine if You Need to Register for GST/HST

The first step is to determine if you need to register for GST/HST. You generally need to register if your annual revenue exceeds the GST/HST registration threshold. The registration threshold is currently $30,000 for most businesses.

However, there are some exceptions to this rule. For example, if you are a non-profit organization or a small supplier, you may not need to register for GST/HST, even if your annual revenue exceeds the registration threshold.

Step 2: Register for GST/HST

If you need to register for GST/HST, you can do so online using the CRA’s My Business Account. You will need to provide your business information, such as your business name, address, and GST/HST number.

Step 3: Collect GST/HST from Your Customers

Once you are registered for GST/HST, you will need to collect the tax from your customers. The GST/HST rate is currently 5% in most parts of Canada, but it is higher in some provinces.

You can collect the tax in two ways:

  • Input Tax Credit (ITC): You can claim an ITC for the GST/HST that you pay on your business expenses. This means that you can effectively recover the GST/HST that you pay on your business inputs.
  • Output Tax: You must charge your customers GST/HST on the sale of your goods or services.

Step 4: File Your GST/HST Returns

You must file your GST/HST returns on a quarterly basis. The deadline for filing your GST/HST return is the last day of the month following the end of the quarter.

You can file your GST/HST return online using the CRA’s My Business Account. You will need to provide information on your sales, purchases, and GST/HST collected and paid.

Step 5: Pay Any GST/HST Owing

If you owe GST/HST to the CRA, you must pay it by the due date for your GST/HST return. You can pay online using the CRA’s My Business Account or by mail.

Additional Tips

Here are some additional tips for filing GST/HST in Canada:

  • Keep accurate records. You will need to keep accurate records of your sales, purchases, and GST/HST collected and paid.
  • File your GST/HST returns on time. If you miss the deadline for filing your GST/HST return, you may be subject to penalties and interest.
  • Get help if you need it. If you are unsure about how to file GST/HST, you can get help from the CRA or from a tax professional.

Call to Action

If you are a business that sells goods or services in Canada, you are likely required to register for GST/HST. ABM Tax Services can help you with the registration and filing process. We can also provide you with advice on how to maximize your GST/HST credits. Contact us today to learn more.

About ABM Tax Services

ABM Tax Services is a team of experienced tax professionals who are dedicated to helping Canadian businesses comply with tax regulations. We offer a wide range of tax services, including GST/HST registration and filing, tax planning, and tax advice. Contact us today to learn more.

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