Canadian GST/HST returns

Once registered for Goods and Services Tax (GST) and/or Harmonized Sales Tax (HST) in Canada, businesses must report all taxable transactions and remit any net tax due to the Canada Revenue Agency (CRA).

GST/HST return deadlines depend on the assigned filing frequency:

• Monthly and quarterly filers: Returns are generally due one month after the end of the reporting period.
• Annual filers: Returns are generally due three months after the end of the fiscal year.

If a due date falls on a weekend or public holiday, the deadline is extended to the next business day.

GST/HST-registered businesses must maintain adequate records to support their returns, including:

• Sales invoices and receipts
• Purchase invoices and expense documentation
• Import and export records
• Accounting books and ledgers supporting GST/HST calculations
• Electronic or paper records, maintained in English or French

Records must generally be retained for six years from the end of the relevant tax year and must be made available to the CRA upon request.

GST/HST payments are generally due on the same date as the return filing deadline:

• One month after the reporting period for monthly or quarterly filers
• For annual filers, payment may be due earlier than the return filing date (typically within three months of fiscal year-end)

Late payments may result in interest charges and penalties under Canadian tax law.

Registered businesses may generally claim input tax credits (ITCs) to recover GST/HST paid or payable on goods and services acquired for taxable business activities, including:

• Goods purchased for resale
• Business equipment and capital assets
• Professional services and general overheads
• GST/HST paid on imports into Canada
• Pro rata ITCs for expenses used partly for business and partly for private or exempt purposes

GST/HST is not recoverable on exempt supplies or personal expenses, and special rules may apply to items such as vehicles, meals and entertainment, and employee benefits.

GST/HST returns are generally filed electronically through the CRA, including via:

• CRA’s My Business Account portal
• Authorised accounting or tax software
• A Canadian tax representative or authorised filer

GST/HST payments can be made through online banking, pre-authorised debit, wire transfer, or other CRA-approved methods.

The CRA may impose penalties and interest for GST/HST noncompliance, including:

• Penalties for late-filed returns
• Interest on late or unpaid GST/HST
• Penalties for understated tax or false statements
• Enhanced penalties for gross negligence or fraud

The CRA publishes and updates applicable interest rates and penalty rules on a regular basis.

If input tax credits exceed output tax collected for a reporting period, the resulting net tax credit may be:

• Carried forward to offset future GST/HST liabilities, or
• Refunded to the business

Refunds are generally processed automatically after the return is filed, although the CRA may delay payment if additional review or documentation is required.