Filing GST, HST and QST returns can be challenging. The terms used by Canadian tax authorities in their periodic remittance forms are rather complex for organisations that are not savvy with Canadian VAT legislations. There are specific rules relating to the acquisition of real properties where details have to be included in the GST, HST and the QST return forms.
Inappropriate filing can generate costs for your organization that could have been avoided had your organisation received proper guidance, at the time these forms were filed.
Ad Valorem specialises in Canadian Indirect taxes; we provide GST, HST and QST compliance for several foreign organizations. We will provide you with guidelines to process payments. The Canada Revenue Agency and the Agence du revenu du Québec have different rules when it comes to remittances. Ask us about these rules.
As a general rule, when your business is registered, the filing frequency of the GST/HST returns and the QST returns in a year will depend on your business annual sales.
For each reporting period, you have to prepare and send a GST/HST return and a QST return showing the amount of tax you charged or collected from your customers and the amount of GST/HST or QST you paid on your expenses.
Your reporting period is based on the total of:
- annual taxable supplies of goods and services made in Canada
- zero-rated supplies of goods and services
- annual taxable supplies of all your associates
When calculating annual taxable supplies do not include:
- supplies made outside Canada
- zero-rated exports of goods and services
- zero-rated supplies of financial services
- taxable sales of capital real property
- supplies of goodwill
When registering for a GST/HST or a QST account, a reporting period will be assigned. In most cases, you may, if you want, choose to have more frequent reporting periods.
|Annual Taxable Supplies||Assigned Reporting Period|
|$1,500,000 or less||Annual|
|More than $1,500,000 up to $6,000,000||Quarterly|
|More than $6,000,000||Monthly|
|Listed financial institutions
(except if deemed to be a LFI)
If your reporting period is monthly or quarterly, you have to file a GST/HST return and pay the amount you owe no later than one month after the end of your reporting period. The same rules apply for the QST.
If you have an annual reporting period, there are two possible rules, depending on your situation:
- if you are an individual and you have a December 31 fiscal year-end, you have to file your GST/HST return and your QST return by June 15 and pay the amount you owe by April 30
- in all other cases, you have to file your GST/HST return and pay the amount you owe no later than three months after the end of your fiscal year
You have to file a GST/HST return and a QST return even if you have no business transactions or no net tax to remit.