You can choose to file your GST/HST return using the regular method or the quick method. We will have other articles discussing the HST quick method. Here, we will focus on the regular way to calculate HST collected, input tax credits and tax owing.
You can download the CRA tax guide below.
https://solidtax.ca/wp-content/uploads/2022/09/rc4022-21e-HST-Registrants.pdf
How often should I report GST/HST?
When you open your GST/HST account, if your business revenue is less than $1.5 million, you have the option to choose to file your GST/HST annually, quarterly, or monthly. For most small business, we suggest filing annually to reduce the workload. You can change your filing periods through your CRA my business account in the first three months of the year.
My business has a GST/HST account, but I didn’t charge my clients GST/HST. Am I still liable for that?
Yes, you are still liable for the tax if you are required to charge the GST/HST but did not charge it. You have to include the GST/HST that you should have charged in the reporting period during which you should have collected the tax.
I just registered a GST/HST account. What should I do next?
You need to start charging your clients GST/HST. It is 13% of the fee you charge your Ontario clients. If your clients live in other provinces, the rate varies. It is 5% in Alberta and Yukon, and 15% in Nova Scotia.
Keep records of all your business expenses. You can recover 100% of the GST/HST paid on your expenses related to your business activities by claiming an input tax credit (ITC).
The tax owing will be the total GST/HST collected minus the ITC. If it is negative, you will get a refund.
I didn’t claim my ITCs on the filed tax return. Can I still claim it?
Yes, you can claim previously unclaimed ITCs on a future GST/HST return. ITCs must be claimed by the due date of the return for the last reporting period that ends within four years after the end of the reporting period in which the ITC could have first been claimed.
I bought a computer for my consulting business. Can I claim the GST/HST paid for it?
Yes, if you use the computer more than 50% for your business activities, you can claim 100% of the ITC.
I bought a new car and use it for my business. Can I claim the GST/HST paid for it?
It depends on the business usage of the vehicle and type of business of your business. See the table below
| Percentage of use in business | Corporation | Self-employed or partnerships |
| <= 10% | None | None |
| >10% and <=50% | None | CCA* |
| >=50% and <90% | 1 | CCA* |
| >=90% | 1 | 1 |
I am a GST/HST annual filer. What is the due date for filing?
Normally, the filing due date is three months after your business fiscal year ends. For a self-employed individual, who has a December 31 fiscal year-end, the annual filing due date may be June 15, and the payment due day is April 30. You can check the filing due day on your CRA My Business account.
