GST HST Tax Return Services

The harmonized sales tax (HST) in Canada is a unified tax that includes the federal goods and services tax (GST) with provincial sales taxes (PST). This system makes the tax process simpler. 

Businesses collect HST on their sales and send it to the CRA, after deducting the HST they have paid on their business expenses. Businesses can file their HST returns monthly, quarterly, or annually based on their HST reporting needs.

GST/HST payments are generally quarterly basis, but this can vary depending on the business’s reporting period. For a detailed schedule of payment due date, please click here.

The current HST rate in Ontario is 13%.It combines both the Federal (GST) and provincial sales tax (PST) components.

HST operates as a consumption tax, meaning it is paid by the end customer at the point of sales. 

Businesses apply the relevant HST rate to the price of goods or services and collect it from their customers. 

After covering their expenses, businesses send the collected HST to CRA. 

This method helps businesses follow tax rules and manage HST funds effectively.

HST is a consumption tax in Canada that includes both the Federal GST and provincial PST into a unified sales tax.

Current HST rate in Ontario is 13% and 14.975% in Quebec.

After collecting HST from customers, businesses send it to CRA and deduct the HST from their expenses.

You can file your HST returns monthly, quarterly or annually. Keep in mind HST is a tax paid by the end consumer, not source of income or expenses from business.

After deducting HST, businesses can report their expenses and income. Registered businesses can reclaim their HST they’ve paid to CRA.

Some supplies are exempt from HST in Canada.

Registered businesses should not impose HST on these supplies and in most cases, they cannot claim input tax credits from them.

Goods and services that are zero-rated excluded from HST. 

Basic groceries such as meat, fish, eggs, cereals, poultry, fresh or frozen vegetables, coffee, tea and dairy products are all examples of tax-free items. 

An HST is an unique 9-digit identifier number provided by CRA to businesses, partnership and sole proprietorships.

Similar to Business Number (BN), a legitimate HST number ends with RT0001, for example HST# 987654321 RT0001.

It is important to include an HST number on invoices helps you ensure proper identification and compliance with tax guidelines.

If a small business earns more than $30,000 in revenue, it is important to obtain a GST/HST number.

If the business is not registered, it still has to pay 13% of its sale to CRA, even if it didn’t collect tax from customers.

This mistake could result in a loss of 13% of sales. Registration for an HST number is essential to avoid such financial issues and remain compliant with tax duties.