If you have registered GST/HST account with Canada Revenue Agency, you are required to file your GST/HST return. Generally, your annual sales determine how often you have to file GST/HST returns. It can be Annually, Quarterly, or Monthly. You can choose to do it by yourself or use a HST Return Filing Service.
File your GST/HST return in 3 steps
1. Calculate the amount of GST/HST you collected from your customers.
2. Calculate the GST/HST you paid or owe on purchases and expenses related to your business. This amount is the input tax credits (ITCs).
3. Your net tax is the amount of GST/HST you collected minus the ITCs. If it is positive, you have to pay HST to CRA; if it is negative, you get HST tax refund.
Tips on GST/HST return
- To claim GST / HST credit, your purchase invoice must show GST / HST amount you paid.
- If you use personal assets in business for more than 50%, you can claim 100% input tax credits. If you use your personal vehicle more than 90% in business, you can claim 100% input tax credits.
- You can claim input tax credits on assets that you are using in your business even if these assets were bought before your registration of GST. Usually you have four years from the time of filing first GST return to claim input tax credits.
- You may be able to choose quick method of your GST/HST filing.
Please make sure you have your HST efiling web access code ready. It will be used to efile your HST tax return.