Little Intro to GST/HST
If you have started a new business or going to start a business, you must be worried about the taxes, particularly sales taxes, in Ontario, known as HST or GST/HST.
The good news is that up to $30,000 in sales, a business doesn’t have to be a GST/HST registrant, which means you can sell services or goods and don’t have to charge sales tax if the sales are less than $30k. Taxi/Ridesharing is an exception to this rule, if you drive a taxi or do ride-sharing, you must register for Gst/Hst account before earning your first dollar.
But you can register voluntarily for GST/HST account if your sales are less than $30k, but beware that then you would have to charge sales tax to your customers, which is 13% on top of the sale price in Ontario.
A business must file a GST/HST return if it has GST/HST account, even if it has:
- no business transactions
- no net tax to remit
Filing Periods
There are 3 filing periods from which you may select one, which suits you the best (some exceptions are there).
- Monthly
- Quarterly
- Annually
And here are the details on filing and payment deadlines according to the periods:
The Canada Revenue Agency (CRA) can charge penalties and interest on any returns or amounts not received by the due date. The CRA will hold any GST/HST refund or rebate you are entitled to until the CRA receives all outstanding returns and amounts. If you are a sole proprietor or partnership, your personal income tax refund will also be held.
When a due date falls on a Saturday, a Sunday, or a public holiday recognized by the CRA, your payment is on time if it is on the next business day.
We help small businesses, registering the business, and required accounts with CRA. Moreover, we provide consultancy on which year-end to choose (by analyzing the best suited period according to the business structure and expected revenues) and provide tax returns filing services.
Feel free to contact us if you have any questions regarding taxes.