How do I file and pay my GST/HST return?

How your filing frequency is assigned

The CRA assigns a filing frequency based on your annual taxable supplies, and a small business filing under the standard annual threshold can generally choose to file more often even if annual filing is available to them. As revenue grows, the CRA moves a registrant to quarterly and eventually monthly filing, since higher-volume businesses report more often by default. Choosing to file more frequently than required is allowed and sometimes worthwhile for a seasonal business that would otherwise wait a long time for a large refund after a slow stretch.

Your notice of assessment or your CRA My Business Account profile shows your currently assigned frequency, and it is worth checking there directly rather than assuming last year's frequency still applies, since crossing a revenue band can change it going forward without a separate notice always being issued in advance. A business that grew quickly in the past year is a good candidate to double check this before assuming its old filing calendar still holds.

Due dates depend on your filing period

Quarterly and monthly filers generally have one month after the end of the reporting period to file the return and pay any amount owing. Annual filers who are corporations typically have three months after their fiscal year-end to file and pay.

Annual filers who are sole proprietors follow a different split that catches people off guard: the GST/HST return itself is due June 15, matching the personal income tax filing deadline for the self-employed, but any GST/HST balance owing is still due by April 30, the same date as the personal tax payment deadline. Filing later than April 30 does not extend the payment date, so interest can start accruing on a balance even though the return itself is not technically late yet. This split deadline is worth calendaring separately, since it is easy to treat June 15 as the only date that matters and miss the earlier payment obligation entirely.

Instalments for larger annual filers

An annual filer whose net tax owing exceeded a set amount in the current or the immediately preceding year is generally required to pay quarterly instalments throughout the year rather than settling the whole balance at year-end. This mirrors the instalment system used for corporate and personal income tax, and missing an instalment can trigger instalment interest even if the annual return itself is filed and paid on time.

Confirm the current instalment threshold with the CRA or with us, since it is the kind of dollar figure that is worth verifying against your specific numbers rather than assuming from memory. A growing annual filer should check whether instalments now apply before assuming last year's payment pattern will continue to work.

How to actually file and pay

Most registrants file through My Business Account, the CRA's online portal, or through GST/HST NETFILE, a simpler return-only filing tool for straightforward returns. A representative, such as an accountant with authorization through Represent a Client, can file on a registrant's behalf using the same systems, which is how our GST/HST filing services handle returns for clients who would rather not log in and file themselves each period.

• Line 101 reports total sales and other revenue for the period.
• Further lines report the GST/HST collected and any adjustments, and separately the input tax credits being claimed.
• Line 109 shows the resulting net tax: an amount owing, or a refund if input tax credits exceeded the tax collected.

Payment can be made through online banking by adding the CRA as a payee, through the CRA's My Payment service, by pre-authorized debit set up in My Business Account, or in person at a Canadian financial institution. Filing the return and paying the balance are two separate steps in most of these methods, so submitting the return does not automatically move the money; the payment has to be made separately by the same due date. A registrant expecting a refund instead of a balance owing does not need to do anything further once the return is filed correctly, though it is worth confirming the CRA has current direct deposit banking information on file to avoid a delay. Businesses filing through a representative should still keep their own copy of the confirmation number generated at the time of filing, since it is the simplest way to prove a return went in on time if a question ever comes up later.

Choosing the right calculation method before you file

Most registrants calculate net tax the standard way, tracking actual GST/HST collected against actual ITCs claimed, but some smaller businesses are eligible to use the quick method for GST/HST instead, which simplifies the calculation in exchange for giving up most individual ITC claims. Deciding which method fits before the year starts is easier than switching partway through, since the two methods track different underlying numbers throughout the year.

How we handle GST/HST filing for clients

We track each client's assigned filing frequency and due dates directly, so a return is never late because the frequency changed without anyone noticing, and late returns bring their own filing penalties that are easier to avoid than to unwind. For clients close to the instalment threshold, we flag it before the year-end return is filed, so quarterly instalments can be set up proactively rather than discovered as a surprise interest charge.

Source: CRA — GST/HST for businesses.