As a business owner or operator in Canada, it is important to understand the timeline for filing your GST/HST returns and remitting your taxes to the Canada Revenue Agency (CRA). The Goods and Services Tax (GST) is a value-added tax in Canada that is applied to most goods and services, and the Harmonized Sales Tax (HST) is a combination of the federal GST and the provincial sales tax in certain provinces. In this blog, we will go through the timeline for filing your GST/HST returns and remitting your taxes to the CRA.
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Monthly Filing
If you are a business with taxable sales of more than $1.5 million per year, you are required to file your GST/HST returns monthly. The due date for filing and remitting your taxes is one month after the end of your reporting period. For example, if your reporting period is January, your GST/HST return and payment are due on or before February 28th.
Quarterly Filing
If you are a business with taxable sales of $1.5 million or less per year, you have the option to file your GST/HST returns quarterly. The due date for filing and remitting your taxes is one month and a half after the end of your reporting period. For example, if your reporting period is January to March, your GST/HST return and payment are due on or before May 15th.
Annual Filing
If you are a small supplier with taxable sales of $30,000 or less per year, you are not required to register for GST/HST and do not need to file a return. However, if you choose to register voluntarily, you can file your GST/HST return annually. The due date for filing and remitting your taxes is three months after the end of your reporting period. For example, if your reporting period is January to December, your GST/HST return and payment are due on or before March 31st of the following year.
Late Filing and Payment Penalties
It is important to file and remit your GST/HST returns on time to avoid penalties and interest charges. If you fail to file your return or remit your payment by the due date, you will be charged a late filing penalty of 1% of the amount owing for each month that the return is late, up to a maximum of 12%. In addition, you will be charged interest on any outstanding balance owing, calculated daily at the prescribed rate.
In conclusion, it is important to keep track of your reporting period and file your GST/HST returns on time to avoid penalties and interest charges. If you have any questions or concerns about your GST/HST filing requirements, it is recommended to consult with a tax professional or contact the CRA for further assistance.