GST/HST Return: 2022 Essential Guide

by | Jun 1, 2022

Do you know that, in Mississauga, one of the many rules set by the Canada Revenue Agency is to return the GST/HST on time? We know it can be a confusing process to deal with but we know that you want to come out of the situation as fast as possible. Thus, Yogi & Associates are here to assist you in understanding this whole process. Our accountants will guide you in returning the correct GST/HST to the Canada Revenue Agency.
Hence, to return the correct GST/HST to the CRA, you must follow the rules and regulations. You can also look up to your bookkeeping records to manage the returns on time. But, for that, you should also keep your books up to date. Thus, for guidance, give us a call at Yogi & Associates! Our accountants can help you do your returns according to your bookkeeping records. You can count on us for informed advice and prompt help. 

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):

The harmonized sales tax (HST) combine the federal GST and the provincial PST into a single entity rate. HST promotes continuity across Canada and provide proper management for sales taxes.

3. GST/HST Return:

Like Mississauga, several cities have a policy of returning GST/HST to the CRA. After collecting the GST/HST, you should submit it to the CRA. Depending on your business situation, you can replace it , monthly, or quarterly.
Remember! You cannot keep these earnings because it’s someone else’s. The CRA takes its responsibility as a “TRUST FUND” .
If you want to learn about the GST/HST penalties, you can see our article 4 Basic Penalties for Filing Late GST/HST.
GST/HST return

4. Three Important Things to Complete GST/HST Return:

  1. Your total sale (taxable or non-taxable) during the reporting period.
  2. The sum of GST/HST you took during the reporting period.
  3. The sum of all GST/HST payments made throughout the reporting period.
Note: Keep your bookkeeping records updated to submit GST/HST in the reporting period.

5. Who Pays The GTS/HST?

Everyone pays the GST/HST on goods and services (other than zero-rated supplies). But, there are exceptions for some the provincial and territory governments.

6. Who Charges The GST/HST?

If you are a GST/HST registrant, you must charge and collect the correct amount of GST/HST. You can do this through accurate bookkeeping of sales of your company’s most valuable asset. You must ensure to record every payment. , If you fail to do so may prevent you from receiving credit for other money owed, such as interest or penalties.

7. How to Check GST/HST?

There are two methods to check how much GST/HST you have to give to the CRA.

  1. The Regular Method
  2. The Quick Method

1. The Regular Method:

The regular method is to calculate the total taxable income of businesses. This method keeps the track of GST collected, add the input tax credits, and subtract that total from the total GST collected from your customers.

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?

You should file a GST/HST Return to the Canada Revenue Agency (CRA) once a year. But if doing so suits you, you are free to submit it . After that, the CRA will send you a GST/HST return form, which will include the due date for your return.
  1.  As a sole proprietor, submitting your GST/HST return depend on your income tax return form.
  2. You must submit your GST/HST return for corporate business before the end of the fiscal year if you operate a firm.
  3. 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.

GST/HST return

9. How to Submit GST/HST Return?

You can submit GST/HST return in three ways:

  1. Electronically
  2. TELEFILE
  3. Via Paper

1. Electronically:

There are four ways to file GST/HST online:

NETFILE:

GST/HST NETFILE is an online program to submit your GST/HST return online to the Canada Revenue Agency.

My Business Account:

You can communicate with the CRA on multiple business accounts. Payroll, corporation income taxes, GST/HST and others are included in business accounts

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.

2. TELEFILE:

GST/HST TELEFILE is a quick, free, and simple filing option. It allows you to file your GST/HST returns using their touch-tone phone and a support number quickly.

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?

The CRA can impose a late filing penalty on you if you don’t submit your GST/HST returns by the deadline. For instance, you have to pay a $250 fine if you received a demand to file for GST/HST and failed to do so. You have to pay a $150 penalty if your filing does not include payment fall of your GST/HST liabilities. Additionally, filing errors are subject to penalties fines.

11. Update your Bookkeeping Records:

Maintaining your books up to date is one of the most essential issues you can do as a business person. It’s much easier with the assistance of a bookkeeper. So, we can assist you in meeting your GST/HST liabilities, as well as determine which taxes apply to your company. Moreover, our team can track your expenditures and claim ITC credits. You can also ask us to fil forms for you if you prefer not to do the work yourself. So, if you need an accounting firm for your situation,  Yogi & Associates can assist!

Bottom Line:

A lack of knowledge is one of the reasons that certain small businesses don’t register for GST/HST. But our accountants are geared to help small businesses. This can help you to understand these forms of taxation. They can also help them to keep their books updated for collecting and submitting tax forms.

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!

Get in touch with Yogi & Associates!