Last Updated on: 22nd January 2024, 07:01 am
The Canada Revenue Agency (CRA) possesses the authority to enforce GST/HST regulations, including the ability to levy GST/HST refunds or rebates, impose fines and interest on overdue returns, and withhold individual income tax refunds for partnerships or sole proprietors. It is mandatory to file a final return when closing a GST/HST account.
When to Submit GST and HST Returns
The federal and provincial governments in Canada impose the Goods and Services Tax (GST/HST) on taxable goods. While most goods and services fall under taxable supplies, exempt and zero-rated supplies exist. Failure to submit returns or payments by the deadline empowers the CRA to impose fines and interest.
The CRA may withhold any GST/HST return or credit until all outstanding returns and amounts are received, including income tax refunds for partnerships or sole proprietors. Closing a GST/HST account necessitates filing a final return. You can also check the CAI Payment Cheque Date.
Reporting Period and Filing Deadlines
The filing deadlines for GST and HST vary based on the reporting period determined by your business’s revenue. The customized GST/HST return form (GST34-2) specifies the deadline, and it must be submitted regardless of business activity. Deadlines falling on weekends or holidays are considered met if payments are received by the next business day.
Filing Frequency Based on Revenue
Businesses with revenues under $1,500,000 have an annual reporting period but can opt for more frequent reporting. Revenues between $1,500,000 and $6,000,000 result in a quarterly reporting period, with the option for monthly reporting. For incomes exceeding $6,000,000, monthly reports are mandatory.
Online Filing Requirements
Certain situations, as outlined in the chart, mandate electronic filing of GST/HST returns (GST34). Failure to comply may result in penalties. Builders registered for GST/HST and non-builders registering for GST/HST, not qualifying as charities, must submit recaptured input tax credits (RITCs) if their taxable supply exceeds $1.5 million annually.
You can also check the $1,360 Monthly CPP Payment Dates.
Eligibility for GST/HST Refunds
Individuals at least 19 years old qualify for GST/HST refunds. Those under 19 must meet specific criteria, such as being a parent living with their child or having a partner or common-law partner. The GST/HST credit for a child can be divided between parents with shared custody.
How to File GST/HST Refunds
The CRA oversees the entire application filing process. Eligibility is verified before benefits are deposited. The application can be submitted online through the My Business Account portal on the official https://www.canada.ca/ website. Users must register, log in, provide necessary information, and complete either the GST34 or RC7200 forms.
Alternative methods include GST/HST TELEFILE and GST/HST NETFILE for quick and electronic filing.
