When to file
Filing your GST/HST returns on time is crucial for maintaining compliance with the Canada Revenue Agency (CRA). If you miss the deadline, the CRA may charge penalties and interest on any outstanding amounts. Additionally, if there are any unfiled returns or amounts, the CRA will withhold any GST/HST refund or rebate you’re entitled to until everything is settled. If you are a sole proprietor or a partnership, your personal income tax refund may also be withheld.
If you’re closing a GST/HST account, you must ensure you file a final return to avoid any complications.
Understanding Reporting Periods
A reporting period refers to the time frame for which you need to file your GST/HST returns. The length of your reporting period depends on your business’s total sales in Canada for the previous fiscal year or in each fiscal quarter leading up to it.
Here’s how your reporting period is determined based on your annual taxable sales:
- Annual filer: Sales of $1,500,000 or less in the previous year
- Quarterly filer: Sales between $1,500,000 and $6,000,000
- Monthly filer: Sales of more than $6,000,000
GST/HST Filing Deadlines by Reporting Period
Your filing deadlines vary depending on your reporting period. Below are the typical deadlines for each type of filer:
- Annual filer: Your return is due 3 months after the end of your fiscal year.
- Quarterly filer: Your return is due 1 month after the end of each reporting period.
- Monthly filer: Your return is due 1 month after the end of each reporting period.
Why Timely Filing Matters
Late filing can lead to significant financial penalties and interest charges, as well as delays in receiving any refunds or rebates you’re entitled to. Be sure to track your reporting periods and meet the required filing deadlines to avoid unnecessary complications and keep your business in good standing with the CRA.