In Canada, GST/HST Payment
When it comes to understanding the complex GST/HST payment schedules and obligations, owners of small businesses may find themselves at a disadvantage. When it comes to submitting your GST/HST reports and making payments, it can feel like you are continuously playing catch-up owing to changes in federal regulations, payment methods, new credits, and revised criteria. This can be frustrating for business owners.
When your company's sales of goods and services in Canada total more than $30,000 over the course of four consecutive quarters, you are obliged to apply to the Canada Revenue Agency (CRA) for a GST/HST number. This application must be submitted within 30 days of the end of each quarter. After that, you will be able to begin the process of collecting GST and HST from your customers and remitting the funds to the CRA in accordance with a specified payment schedule for GST and HST.
On their GST/HST returns, businesses have the option of using input tax credits, often known as ITCs, to offset the amount of GST/HST that they are obligated to pay to the government. When you file your HST tax return, the amount of GST/HST that you are required to pay to the government is calculated "net" of any input tax credits for the amount of HST that you have already paid on your purchases. This is because the amount of GST/HST that you are required to pay is based on the total amount of HST that you have paid.
After finishing a GST/HST return, the majority of smaller businesses are obligated to submit a payment for GST/HST. If business owners want to avoid paying large penalties and interest on top of the outstanding amount, they need to make sure that the balance is paid within the stated timetable for the payment of GST or HST. Only then will they escape the risk of incurring these additional costs.
What are some ways that you can make sure that you pay your GST and/or HST by the day that it is due? The Canada Revenue Agency provides a range of options to meet the requirements of your company.
The tax experts at Numetrica can provide you with any and all information pertaining to the payment of your GST/HST, including where to submit the payment and how easy it is to make the payment electronically.
Dates for Payment of GST and HST
It is essential to have a thorough understanding of your GST / HST payment schedule and to adhere to the periods specified for making payments in order to avoid incurring penalties and interest.
Your company's operations and size will determine which of the four options for filing periods and related payment dates for GST / HST your company will choose to utilize when it registers for GST / HST. These alternatives are available to you when you sign up for GST / HST. These are on a monthly, quarterly, yearly (with a year-end on December 31st), and yearly (with a custom year end) basis. Depending on which of these filing periods you adhere to, your timetable for making GST or HST payments will be different.
The following dates are applicable for making payments of GST or HST throughout each of the four filing periods:
- Monthly: following the conclusion of the reporting period, one month later/ If your monthly reporting period runs from the 1st to the 31st of July, the deadline for filing your report and making payments is the 31st of August.
- Quarterly:one month after the end of the period for which the report is being prepared
- The 30th of April is the day by which documents must be filed and payments must be made for a quarterly reporting period that extends from January 1 to March 31.
- Annually with a December 31st year-end: The deadline to submit paperwork is on June 15th, and the deadline to make payments is on June 30th.
- Annually with a year-end other than December 31st:your company's fiscal year will conclude three months after it has ended.
If your traditional year ends on August 31st, the deadline for submitting your taxes and making payments would be November 30th.
If the day of your payment deadline falls on a weekend or a holiday that is observed by the CRA, your payment will be considered to have been received on time if it is received on the next business day.
You, as a corporation, have the ability to select the filing and GST/HST payment date that is most convenient for your business. The majority of companies decide to file their HST returns and make payments on either an annual or quarterly basis. It is typically simpler for your company to make payments on a monthly basis if it has a big monthly revenue. If you run your business as a sole proprietorship, the due date for your GST/HST payments will coincide with the one for your personal income tax.
Sending your GST or HST payment:
There are various choices for your organization regarding where to submit its GST and HST payments. Note that payments above $50,000 must be made at your banking institution or electronically. Regardless of the filing method you select, you are not qualified for the other options.
The Goods and Services Tax (GST) and the Harmonized Sales Tax (HST) that your company is obligated to pay can be paid for through the CRA's My Payment program by using Interac Online. The Canada Revenue Agency receives the funds in a straight transaction from your online bank account. To be able to utilize this choice, you are need to have access to Interac Online through your chosen financial institution.
To pay GST or HST, you can use the phone banking facilities offered by your bank or credit union. Your remittance voucher will be needed.
You have the option to provide the CRA with authorization, on a particular date, to automatically deduct the required amount of HST from your bank account. This is something that can be set up under your CRA My Business Account.
If you use the GST / HST Netfile/Telefile Remittance Voucher or the HST payment form RC158, you will be able to pay the tax in person at your financial institution as long as you have the proper documentation.
Complete the GST/HST form that has been personalized for you. Send the CRA that was mailed to you, as well as the remittance voucher for the form, to the address that is provided on the back of the voucher. Don't forget to include a check or money order that is made out to the Receiver General. Write your 15-character business number down on the back of the check or money order.
Information on how to pay GST/HST online
Online GST/HST payments are easy to do, receive your money instantly, and are highly recommended by Numetrica. When you use online payments, you may feel secure knowing that your GST/HST payment deadline is being met.
Use the online My Payment electronic payment facility provided by the CRA. To pay your GST/HST straight to the CRA from your online business banking account, use Interact Online. A receipt is sent to you right away, which you may print or email for your records.
Additionally, you can make a straight online payment using your online banking account. Look for "Federal – GST/HST Payment – GST-P (GST-P)" in the payee list to set up a payee. Your CRA account number is your 15-digit company number. Pay the bill using your online bank account in the same manner that you would any other bill.
Complete the GST/HST customized form. Return the CRA that was mailed to you, the remittance voucher for the form, and a check or money order made payable to the Receiver General to the address indicated on the reverse of the voucher. Write your 15-character business number on the back of the check or money order.
What is the GST/HST Netfile?
A web-based filing service known as GST / HST Netfile is made available by the CRA to all GST / HST registrants in Canada, with the exception of those in the province of Quebec.
Through the use of GST/HST Netfile, you are able to electronically file your GST/HST return and then directly transmit it to the CRA. In order to accomplish this goal, you are going to require a GST / HST Netfile access code. The CRA sends these documents to your company's registered business address via regular mail. After you have received your access code, using Netfile to file your GST/HST return is a quick and easy process. Any unpaid GST or HST can be settled using one of the procedures that were presented earlier in this paragraph.
The Canada Revenue Agency (CRA) offers a service known as Telefile for customers who would rather file their returns by telephone. After submitting your return using Telefile, you have three options for making your GST/HST payment: you can either send it in the mail, use the electronic service offered by the CRA called My Payment, or pay through your financial institution.
Utilize Numetrica to make your GST/HST payment on time.
Many individuals who are self-employed as well as owners of small businesses find that the process of paying their GST and HST can be difficult. The team at Numetrica is dedicated to ensuring that your GST and HST payments are completed precisely and on time so that you may avoid incurring penalties and making significant interest payments, and so that you can keep more of your revenue and earnings for yourself.
We help large corporations, small and medium-sized organizations (SMEs), and small businesses in Canada file their tax returns and pay the correct amount of GST and HST to the Canada Revenue Agency (CRA). By providing you with tax planning and other accounting services, we ensure that you are prepared to meet all of your monetary obligations throughout the course of the year.
Get in contact with us right away to take advantage of our no-cost consultation and discover how.
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