If your small business is collecting Goods and Services Tax (GST)/ Harmonized Sales Tax (HST) from its customers for the goods and services you have provided them as a business, it is important to understand how to remit those taxes back to the government.
Filing GST/HST return also refers to claiming the Input Tax Credits (ITCs). It is the GST/HST you pay on services or supplies that you acquired to run your business. Check the CRA website to see if you qualify for an ITC deduction.
Filing a GST/HST return may seem more complicated than filing your personal income tax return. The information required, and the process of filing the return are both quite different. This article will guide you about ways to pay GST/HST if you have a balance owing.
Businesses must choose a method of paying GST/HST. The selection depends upon various factors such as availability of time to file GST/HST returns before the due date, convenience, etc.
Electronic payment mode of GST/HST further leads to three different channels you can choose from for your payment.
Pay in person at a financial institute which is a registrant at CRA using Form RC158, GST/HST Netfile/ Telefile Remittance Voucher.
Fill the personalized GST return the CRA has mailed to you. Then mail this GST return remittance voucher with a cheque or money order made payable to the Receivers General at the address on the back of the voucher. Ensure to write your business number on the back of the cheque or money order.
In case you don’t receive your personalized GST return, you can request form GST62 by calling the CRA’s Forms and Publications call center.
NOTE: GST/HST payments of $50,000 or more must be made electronically at a financial institution, credit union, or corporation authorized under the federal or provincial laws of Canada.
CRA Ruling: When it is Mandatory to File GST/HST Electronically?
As of July 1, 2010, CRA ensures certain businesses must file their GST/HST returns electronically. For instance, GST/HST registrants with greater than $1.5 million in annual taxable supplies (except for charities); all registrants that are required to report recapture input tax credits (RITCs) for certain inputs in their province; or builders claiming provincial transitional new housing rebates. For more details refer CRA website.
The CRA offers a variety of mediums to eligible GST/HST registrants (except for registrants in Quebec), that can be availed to make electronic GST/HST payment. This range of different mediums is permitted to encourage electronic filing.
Are you encountering any challenges in filing your GST/HST Return, feel free to reach out to Filing Taxes at 416-479-8532? Schedule an NTR engagement appointment with us and take the first step towards proper management of your finances.