Transcript

Host: Welcome to the segment called Filing your returns and remitting the GST/HST, part of the CRA’s GST/HST Information for a New Small Business video.

With me is John Kelly.

Welcome John.

Subject matter expert: Thank you Kathleen.

Host: How do businesses complete and file their GST/HST returns?

Subject matter expert: GST/HST registrants with greater than $1.5 million in annual taxable supplies (except for charities) are required to file electronically and in other situations that will be discussed later in this segment. You can file your return by using a paper return only if you are not required to file electronically.

For each reporting period, you have to prepare and send to the CRA a GST/HST return showing the amount of the GST/HST you charged your customers and showing the amount of GST/HST you paid or owe to your suppliers that you will be claiming as an input tax credit.

Host: How is a reporting period determined?

Subject matter expert: Your annual sales determine how many times a year you have to file GST/HST returns. The CRA refers to these as reporting periods.

Your reporting period is based on the total of your annual taxable supplies of goods and services made in Canada; the zero-rated supplies of goods and services; and the annual taxable supplies of all your associates.

When you register for the GST/HST, the CRA assigns you the reporting period required.

You may be able to choose to report more frequently, based on the amount of revenue from your annual taxable supplies from your previous fiscal year.

Host: What options do I have?

Subject matter expert: If your annual taxable supplies are $1.5 million or less, you are automatically assigned an annual reporting period. You have the option to choose to file monthly or quarterly.

If your annual taxable supplies are over $1.5 million, and up to $6 million, you are assigned a quarterly reporting period. You have the option to file monthly.

Finally, if your annual taxable supplies are over $6 million, you have to file monthly.

Host: What do I have to do if I want to choose a different option than what was assigned by the CRA?

Subject matter expert: If you qualify and you want to change your assigned reporting period, you can complete and send Form GST20, Election for GST/HST Reporting Period to the CRA electronically using My Business Account.

If you want to change from quarterly to annual filing, tell the CRA no later than three months after the beginning of the fiscal year that you want this change to take effect. In all other cases, you must tell the CRA no later than two months after the day you want the changes to take effect.

Host: If a business has to change reporting periods, because their taxable supplies go over one of those thresholds, when does the CRA make the change?

Subject matter expert: If you are an annual filer and your revenue from taxable supplies is more than $1.5 million during the current fiscal year, you have to file quarterly beginning with the first fiscal quarter in the next fiscal year.

If you have a quarterly reporting period and your revenue from taxable supplies is more than 6 million during the previous fiscal quarters in the current fiscal year, you have to report monthly beginning with the first fiscal quarter after you went over the threshold amount.

For more information on reporting periods, go to the CRA webpage on GST/HST Reporting periods. The link is included in the Related links for this segment.

Host: When are GST/HST returns due?

Subject matter expert: The due date for returns depends on your reporting period.

Let’s look at annual filers first.

If you have an annual reporting period, you usually have to file your return and remit any amount owing no later than three months after the end of your fiscal year.

There is, however an important exception. If: you are an individual with business income for income tax purposes, you file annual GST/HST returns; and you have a December 31^st fiscal year-end, your GST/HST payment is due April 30^th, but you have until June 15^th to file your GST/HST return.

Host: And what about for quarterly or monthly filers?

Subject matter expert: If you have a monthly or quarterly reporting period, you have to file your GST/HST return and remit any amount owing within one month after the end of your reporting period.

Host: Where would a registrant look, to be sure of their due date?

Subject matter expert: It might be helpful to keep track of your reporting periods or due dates in your business calendar.

If the CRA mails you a personalized GST/HST return, your filing due date is located in the top-right corner of the return. You can also use the CRA My Business Account option. It’s a secure and convenient way for business owners to access their CRA account information on-line. The service lets businesses view and send a variety of their tax information on their own schedule, in one place. For more information on My Business Account, go to the CRA webpage at www.cra.gc.ca/mybusinessaccount. The link is included in the Related links for this segment.

Host: What options do I have for filing my GST/HST returns?

Subject matter expert: There are many different filing options available, however, depending on your situation you may be required to use a specific method for filing your GST/HST returns and remitting any amount owing.

There are several electronic options available for filing GST/HST returns.

GST/HST NETFILE is a convenient Internet-based filing service that lets eligible registrants file their GST/HST returns and eligible rebates directly to the CRA over the Internet. Qualifying registrants access the online forms through the Ready to file page and enter the required information. After they have entered the data, they confirm that they want to file the information with the CRA, and immediately get a confirmation number. For more information, go to the CRA’s webpage on that topic. The link is included in the Related links for this segment.

GST/HST Internet File Transfer is an Internet-based filing service that lets registrants file their GST/HST returns directly to the CRA over the Internet using third-party accounting software.

Host: So NETFILE and Internet File Transfer are two electronic methods of filing. Are there any others?

Subject matter expert: Yes. Your GST/HST return and remittance information can be filed electronically using electronic data interchange (EDI) technology through GST/HST EDI.

EDI is a computer-to-computer exchange of information in a standard format. Eligible businesses can use EDI to file their GST/HST returns and remit their GST/HST payments electronically.

One other electronic filing option is GST/HST Telefile. Using a touch tone telephone and a toll free number, businesses that are eligible to use this filing method can file their GST/HST returns over the telephone.

To learn more about electronic filing options currently available to GST/HST registrants, go to www.cra.gc.ca/gsthst-filing. The link is included in the Related links for this segment.

Host: Who has to file electronically?

Subject matter expert: Mandatory electronic filing is required for:

registrants that have greater than $1.5 million in annual taxable supplies; all registrants that are required to recapture input tax credits for the provincial part of the HST on certain inputs; and builders affected by the transitional housing measures.

A penalty will apply if you are required to file electronically and you do not do so. For more information go to the CRA webpage on penalties and interest. The link is included in the Related links for this video

The mandatory electronic filing rules relating to recapturing input tax credits on certain inputs and relating to builders are beyond the scope of this video. For more information, go to the CRA webpage on mandatory electronic filing. The link is included in the Related links for this segment.

Host: What information does a registrant need to have, before they can file online?

Subject matter expert: To file online, you need your GST/HST number, your reporting period dates, and your four-digit access code.

You will find your access code on the top-right corner of the GST/HST return that the CRA sends you.

If you have not received your access code through the mail, you can get a new code by using the CRA’s GST/HST Access Code Online Service. The link is included in the Related links for this segment.

If you are registered to use My Business Account, you do not require an access code to file GST/HST returns online.

Host: Are there alternatives to filing electronically?

Subject matter expert: Yes. If you are remitting an amount owing, you can take your return and remittance to your participating financial institution in Canada.

You cannot file your return at a financial institution if you are required to file your GST/HST return electronically or if you are claiming a refund, filing a nil return, or offsetting an amount owing on the return by a rebate or refund.

Eligible registrants, other than those required to file electronically, can file their GST/HST return by mail using a personalized return, Form GST34, or a non-personalized one, Form GST62, and mail it to their tax centre. The mailing address is found on the form.

If you did not receive or you misplaced your return, call the CRA’s Business Enquiries line at 1-800-959-5525 to get Form GST34, or use the online order form, to get Form GST62.

You can also drop your completed GST/HST return off at your tax centre or tax services office.

The CRA recommends, however, that businesses make use of the electronic services.

Filing your returns electronically reduces your paper burden, plus your returns get filed more quickly and accurately.

Host: And how do registrants pay an amount owing?

Subject matter expert: There are several ways to pay your account.

My Payment is an electronic payment service offered by the CRA that uses Interac® Online to allow individuals and businesses to make payments directly to the CRA from their online banking account.

For more information on My Payment, the link is included in the Related links for this segment.

You may be able to pay electronically through your Canadian financial institution’s telephone or Internet banking services. In addition, most financial institutions allow you to schedule future payments.

For more information go to the CRA webpage Electronic payments for business. The links are included in the Related links for this segment.

If you qualify, you can take your return to a participating financial institution in Canada and make your payment there.

You can mail your return and your remittance, if any, to the address shown on the GST/HST return. Print your business number on your cheque, and make it payable to the Receiver General for Canada. Do not send cash in the mail.

Host: Now that I know when my return and my payments are due, what happens if I’m late?

Subject matter expert: Failure to file penalties and interest may apply to any return filed late, or on any amount that is not remitted on time.

For more information, watch the segment of this video, Avoiding penalties and other consequences.

Host: What’s a good resource for filing and remitting GST/HST returns?

Subject matter expert: For more information on filing your return and remitting the GST/HST, go to the CRA webpage on how to file your return and remit any amount owing. The link is included in the Related links for this segment.

Host: Thank you John.

This concludes the segment called Filing your returns and remitting the GST/HST, part of the CRA’s GST/HST Information for a New Small Business video.

Thank you for watching.