Filing your GST/HST return doesn’t have to be a daunting task. Whether you’re a seasoned business owner or just starting, understanding the process and timelines can help you avoid penalties and ensure smooth operations. Let’s break it all down into an easy-to-follow guide, complete with tips to make filing stress-free.
Why Filing On-Time Matters
The Canada Revenue Agency (CRA) enforces penalties and interest on late GST/HST returns or payments. Not only that, but any refunds or rebates you’re entitled to will be put on hold until you’ve filed all outstanding returns and paid any amounts due. Sole proprietors and partnerships should also note that personal income tax refunds might be delayed if GST/HST accounts aren’t up to date. Closing your GST/HST account? You’ll need to file a final return to wrap things up.
Go Digital and Avoid Penalties
Starting with reporting periods after December 31, 2023, most GST/HST registrants are required to file electronically. The only exceptions are charities and selected listed financial institutions (SLFIs). If you continue using paper returns despite this mandate, you’ll face penalties. Filing online not only helps you stay compliant but also saves time and ensures accuracy.
Convenient Filing Methods
Here are the various ways you can file your GST/HST return:
- GST/HST NETFILE: A secure online service that lets you file directly to the CRA.
- My Business Account: This portal allows you to manage all your business tax accounts securely.
- Represent a Client: Designed for authorized representatives to file on behalf of businesses.
- Electronic Data Interchange (EDI): Pay your net tax electronically through participating financial institutions.
- GST/HST TELEFILE: File your return using a touch-tone telephone in just minutes.
- GST/HST Internet File Transfer: Use third-party accounting software to upload your return to the CRA.
- Paper Filing: While electronic filing is encouraged, charities and SLFIs can still use paper returns. Others may face restrictions and penalties.
Note: You can’t file at a participating financial institution if you’re claiming a refund, filing a nil return, or offsetting the amount owing with a rebate.
Your Personalized GST/HST Return Package
Each fiscal year, the CRA sends personalized GST/HST return packages to registrants. These packages may include:
- Information Sheet: Details of your reporting periods and due dates.
- Access Code: For electronic filing via NETFILE or TELEFILE.
- Remittance Vouchers: For payments made at financial institutions.
If you switch to electronic filing and make two consecutive electronic payments, the CRA will stop sending you these packages unless requested. Need a replacement package or access code? Contact the CRA at 1-800-959-5525 or visit their online portal.
Filing a Rebate? Here’s What You Need to Know
If you’re filing a GST/HST rebate that can’t be submitted electronically, mail it to the address on the rebate form by the same deadline as your electronic return. For more details on rebate applications, visit the CRA’s official website.
Exemptions from Electronic Filing
If electronic filing isn’t feasible for you, you can request an exemption by writing to:
GST/HST Processing
Prince Edward Island Tax Centre
275 Pope Road
Summerside, PE C1N 6A2
Include a detailed explanation of why you can’t comply. Exemptions are granted on a case-by-case basis.
Checking Past Returns
Using My Business Account, you can view the status and details of previously filed GST/HST returns. This tool also lets you monitor upcoming and overdue returns, keeping you on track.
Avoid Common Errors
Mistakes can delay processing and potentially lead to penalties. Here’s how to steer clear of common pitfalls:
- Accurate Entries: Double-check amounts for taxable supplies (Line 101) and ensure they include zero-rated supplies.
- Claiming ITCs Correctly: Input only the GST/HST paid or payable on property and services for business use. Personal or exempt supplies are not eligible for Input Tax Credits (ITCs).
- Zero Transactions: Even if you had no business activity or net tax to remit, you must file a return.
Understanding Due Dates
Your return’s due date depends on your reporting period, which can be monthly, quarterly, or annually. The due date will be listed on your personalized GST/HST return (Form GST34-2). Here’s a general rule: if your due date falls on a weekend or public holiday recognized by the CRA, your payment is considered on time if received the next business day.
Tip: Use My Business Account to view and manage your deadlines. This ensures you never miss a filing date.
Filing Deadlines Based on Reporting Periods
- Monthly Filers: File by the end of the following month.
- Quarterly Filers: File by the end of the month following the quarter.
- Annual Filers: Deadlines vary, especially for individuals with December 31 fiscal year-ends. Check with the CRA for specific dates.
For annual filers with instalment payments, ensure your payments align with the CRA’s deadlines to avoid penalties.
Refund Holds: What to Watch For
If you have outstanding returns or amounts due under other acts, such as the Excise Tax Act or the Income Tax Act, any GST/HST refunds or rebates will be withheld until compliance is achieved. Sole proprietors and partnerships should pay special attention as personal income tax refunds may also be impacted.
Final Thoughts
Filing your GST/HST return doesn’t have to be overwhelming. By understanding your responsibilities, using the available online tools, working with a professional bookkeeper and staying on top of deadlines, you can simplify the process and avoid unnecessary penalties. Bookmark this guide for quick reference and ensure your business remains in good standing with the CRA. Happy filing!
