For many small business owners in Canada, filing GST/HST (Goods and Services Tax / Harmonized Sales Tax) can feel confusing and time-consuming. But staying on top of your GST/HST obligations is critical to avoid penalties and maintain compliance with the Canada Revenue Agency (CRA).
The good news is, with the right approach and professional guidance, GST/HST filing doesn’t have to be complicated. Let’s break it down step by step.
1. Do You Need to Register for GST/HST?
Not all businesses are required to register. Here’s the general rule:
- If your total taxable revenues are $30,000 or more in a single calendar quarter or over four consecutive quarters, you must register for a GST/HST account.
- If you earn less than $30,000, you’re considered a small supplier and registration is optional (though voluntary registration may still benefit you).
2. Collecting GST/HST from Customers
Once registered, you need to charge GST or HST on most of your sales and services:
- GST (5%) applies in provinces that haven’t harmonized their sales tax with the federal government.
- HST (13–15%) applies in provinces where GST is combined with provincial sales tax (like Ontario, Nova Scotia, and New Brunswick).
It’s your responsibility to collect the correct amount from customers and keep accurate records.
3. Input Tax Credits (ITCs)
The good news is, you can claim back the GST/HST you pay on eligible business expenses through Input Tax Credits (ITCs). For example:
- Office supplies
- Business travel expenses
- Professional fees (like bookkeeping and accounting)
- Equipment purchases
Proper bookkeeping ensures you don’t miss out on valuable ITCs.
4. Filing Your GST/HST Return
You can file your return monthly, quarterly, or annually depending on your reporting period. The return will include:
- GST/HST collected from customers
- GST/HST paid on business expenses (ITCs)
- The difference (what you owe or the refund you’re entitled to)
Returns can be filed:
- Online via CRA My Business Account
- Through a bookkeeper or accountant
- By mail (less common today)
5. Common Mistakes to Avoid
- Forgetting to register once you pass $30,000 in revenue
- Charging the wrong GST/HST rate for your province
- Missing filing deadlines and incurring penalties
- Not keeping proper records for ITC claims
- Mixing personal and business expenses
6. Why Professional Help Matters
Small business owners often get overwhelmed by GST/HST rules. A professional bookkeeper or accountant can:
✅ Ensure correct GST/HST registration
✅ Track and report taxes accurately
✅ Maximize ITCs
✅ File returns on time
✅ Help avoid CRA penalties and audits
Conclusion
GST/HST filing doesn’t have to be stressful. With accurate bookkeeping, the right systems, and professional support, you can simplify the process and stay compliant with confidence.
At MVP Accounting, we specialize in helping Canadian small businesses manage their GST/HST registration, filing, and reporting—so you can focus on growing your business without worrying about tax deadlines.
📞 Contact us today for stress-free GST/HST filing.
🌐 Visit: mvpaccounting.tax