GST/HST Return: Why Is It Important?
1. Goods and Services Tax (GST):
GST is charged on purchases of goods and services made within Canada. The majority of products and services are subject to the 5% rate. Only exempt or zero-rated goods and services are non-taxable.
For example, a car you buy in Vancouver will be subject to GST when you import it back into Ontario.
2. Harmonized Sales Tax (HST):
3. GST/HST Return:
4. Three Important Things to Complete GST/HST Return:
- Your total sale (taxable or non-taxable) during the reporting period.
- The sum of GST/HST you took during the reporting period.
- The sum of all GST/HST payments made throughout the reporting period.
5. Who Pays The GTS/HST?
6. Who Charges The GST/HST?
7. How to Check GST/HST?
There are two methods to check how much GST/HST you have to give to the CRA.
- The Regular Method
- The Quick Method
1. The Regular Method:
2. The Quick Method:
In this arrangement, you pay the CRA a specific part of your whole sales. The sum will depend on your income, the nature of your business, and the location.
8. When to Submit GST/HST Return?
- As a sole proprietor, submitting your GST/HST return depend on your income tax return form.
- You must submit your GST/HST return for corporate business before the end of the fiscal year if you operate a firm.
- If your firm has a partnership, you must register your GST/HST three months after the completion of your financial year.
Point to ponder! You must still submit a Nil return even if your company made no sales in Canada. If you don’t submit a Nil return, the Canada Revenue Agency won’t be aware that your company has no tax liabilities.
9. How to Submit GST/HST Return?
You can submit GST/HST return in three ways:
- Via Paper
There are four ways to file GST/HST online:
GST/HST NETFILE is an online program to submit your GST/HST return online to the Canada Revenue Agency.
My Business Account:
Represent a Client:
This means that you can get a variety of tax-related information for both you and your company.
Electronic Data Interchange:
You can electronically pay your GST/HST return thanks to the GST/HST EDI program.
3. Via Paper:
You can file your GST/HST through mail or in person at a participating financial institution.
You cannot file GST/HST at a participating financial organization if:
- You are seeking a refund
- You are filing a nil return
- You get a refund to cover the amount you owe on your return
10. What Happens if GST/HST isn’t Submitted on Time?
11. Update your Bookkeeping Records:
Yogi & Associates is a leading full-service accounting firm in Mississauga. So, you can contact us at anytime! We will guide you by keeping your books up to date and tax compliant with a licensed bookkeeper. Because the right books can help you stay on top of your sales tax obligations. Thus, if you need help with the preparation of your GST/HST return to the Canada Revenue Agency. Our accountants will be happy to assist you!