When to File GST and HST? Eligibility Criteria, Payment Dates, Benefits, Amount, Status Steps To Apply, Required Documents & Deadlines

News: The Canada Revenue Agency (CRA) is tasked with administering and enforcing the Goods and Services Tax (GST) and Harmonized Sales Tax (HST) in Canada. Their jurisdiction includes the power to issue refunds or rebates, impose fines and interest for late returns, and withhold individual income tax refunds for partnerships or sole proprietors.

Taxes Imposed by Provincial and Federal Governments

GST (Goods and Services Tax) and HST (Harmonized Sales Tax) are levies imposed by both the provincial and federal governments of Canada on taxable goods and services. While most goods and services are categorized as taxable supplies, there are also exempt and zero-rated supplies that are not subject to GST/HST.

Filing Returns and Payment Deadlines

Failure to submit your returns or make the necessary payments by the deadline can lead to the imposition of fines and interest by the CRA. Additionally, the CRA has the authority to withhold any GST/HST return or credit to which you are entitled until all outstanding returns and amounts are received. This policy applies to both partnerships and sole proprietors. To close a GST/HST account, filing the final return is a necessary step.

Filing and Payment Due Dates for Self-Employed Individuals

Self-employed individuals have flexibility in determining their filing and payment due dates, which are contingent upon their revenue. Options include filing and paying on a monthly, quarterly, or annual basis, with the choice of having or not having a fiscal year ending on December 31st. The suitable reporting period for your business is determined by your annual revenue.

Reporting Period and Deadline

The deadline for filing your GST/HST return is contingent upon your reporting period, as specified on the top page of your personalized GST/HST return form. It is mandatory to submit a GST/HST return even if there are no business transactions or if there is no requirement to remit net tax. In cases where the deadline falls on a Saturday, Sunday, or a CRA-observed public holiday, your payment is deemed on time if it is received by the CRA on the next business day.

Eligibility for GST/HST Refunds

To qualify for GST/HST refunds, individuals must be at least 19 years old. However, if an individual is under 19, they must either be a parent residing with their child or have a partner or common-law partner. In situations of shared custody, the GST/HST credit for a child can be divided between the parents.

Methods for Filing GST/HST Refunds

The Canada Revenue Agency (CRA) oversees the entire application filing process for GST/HST refunds. To submit the online application, you need to register for a My Business Account on the official CRA website. Once your account is activated, you can log in and provide the necessary information. After verifying your eligibility, you can complete the required forms and submit the application.

Alternative methods for filing GST/HST refunds are also available. GST/HST TELEFILE is a convenient and user-friendly option that allows eligible participants to file returns using a touch-tone phone and a toll-free number. Additionally, GST/HST NETFILE is an electronic filing service that enables registrants to electronically submit their returns and rebates to the CRA.

In summary, adhering to the GST and HST filing obligations in Canada is crucial to prevent fines and interest. The CRA holds the power to impose penalties and withhold refunds for non-compliance. Timely and accurate filing of returns, along with exploring electronic filing options, can streamline the process and ensure conformity with tax regulations.

FAQs

1. Can fines be imposed by the CRA for delayed GST/HST returns?

Yes, if you fail to submit your returns or make the necessary payments by the deadline, the CRA can levy fines and interest.

2. Is it mandatory to file a GST/HST return even if there are no business transactions?

Yes, irrespective of whether there are no business transactions or there is no obligation to remit net tax, filing a GST/HST return is required.

3. What are the eligibility criteria for GST/HST refunds?

To qualify for GST/HST refunds, you must be at least 19 years old. If you are below 19, you must either be a parent residing with your child or have a partner or common-law partner.