Do you know that, in Mississauga, one of the many rules set by the Canada Revenue Agency is to focus on the GST/HST return? We know it can be unclear, but you want to come out of the situation as quickly 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, you must follow the rules and regulations to return the correct GST/HST to the CRA. You can also look 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.
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:
Like Mississauga, several cities have a policy of returning GST/HST to the CRA. Therefore, after collecting the GST/HST, you should submit it to the CRA. Depending on your business situation, you can replace it monthly or quarterly.
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:
The regular method is to calculate the total taxable income of businesses. This method keeps track of the GST collected, adds the input tax credits, and subtracts that total from the total GST collected from your customers.
2. The Quick Method:
You pay the CRA for a specific part of your sales in this arrangement. 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.
- As a sole proprietor, submitting your GST/HST returns depends on your income tax 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 after the completion of your financial year.
Point to ponder!
You must submit a Nil return even if your company made no sales in Canada. If you don’t offer a Nil return, the Canada Revenue Agency won’t know that your company has no tax liabilities.
9. How to Submit GST/HST Return?
You can submit GST/HST returns 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:
You can communicate with the CRA on many 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 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?
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 receive a demand to file for GST/HST and fail 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 and fines.
11. Update your Bookkeeping Records:
Maintaining your books up to date is one of the essential issues you can do as a business person. However, it’s much easier with the assistance of a bookkeeper. So, we can assist you in meeting your GST/HST liabilities and determine which taxes apply to your company.
Moreover, our team can track your expenditures and claim ITC credits. You can also ask us to fill out forms if you prefer not to do the work yourself. So, if you need an accounting firm for your situation, Yogi & Associates can assist!