GST/HST Deferral

1. Will there be an extension of the COVID-19 related relief that the Canada Revenue Agency (CRA) allowed in respect of certain GST/HST payments, remittances and returns?

There will not be an extension of the relief that was announced by the CRA on March 27, 2020 which allowed all businesses to defer, until June 30, 2020, any GST/HST payments or remittances that became owing on or after March 27, 2020, and before July 2020.

Businesses must therefore make these payments and remittances and file these returns by June 30, 2020. Interest will begin to apply to outstanding remittances and payments, and penalties will begin to apply to outstanding returns, effective July 1, 2020.

Businesses that are continuing to experience difficulty in making a GST/HST remittance or payment or filing a GST/HST return can contact the CRA to make a request for the cancellation of penalties and interest, and/or for a flexible payment arrangement.

2. What fiscal measures did the CRA take to help businesses manage their GST/HST payments and remittances?

As announced on March 27, 2020, the CRA allowed all businesses to defer, until June 30, 2020, any GST/HST payments or remittances that became owing on or after March 27, 2020, and before July 2020. This meant that no interest would apply if your payments or remittances are made by June 30, 2020.

The deadline for businesses to file their returns is unchanged. Those who are able to, should continue to file their GST/HST returns on time reporting their net tax for the reporting period to help facilitate tax compliance and administration. However, recognizing the difficult circumstances faced by businesses, the CRA won't impose penalties where a return is filed late provided that it is filed by June 30, 2020.

3. I am an annual filer who is required to make quarterly GST/HST instalment payments. Does the announced deferral apply to instalment payments?

Yes, any GST/HST instalment payments due on or after March 27, 2020, and before July 2020 could be deferred until June 30, 2020. No interest will apply if the instalment payment amounts are paid by June 30, 2020.

Interest will begin to apply to outstanding remittances and payments, and penalties will begin to apply to outstanding returns, effective July 1, 2020.

4. I am an individual with a calendar year reporting period who is not required to file my GST/HST return until June 15th. Am I still required to remit the net tax owing for my 2019 reporting period by April 30, 2020?

No, the remittance of your net tax can be deferred until June 30, 2020. No interest will apply if the net tax is remitted by June 30, 2020. Interest will begin to apply to outstanding remittances and payments, and penalties will begin to apply to outstanding returns, effective July 1, 2020.

5. The Government has announced temporary payment deferrals for income tax, GST/HST and Customs duties. Is there a similar deferral for excise taxes and duties?

Excise taxes and duties are still required to be remitted by their prescribed due dates. If you are having difficulty making your payment on time, you can contact the CRA and request that any related interest on outstanding amounts be waived. Decisions to waive interest are made on a case by case basis.

6. Will the CRA consider relieving the hold on the payment of GST/HST refunds for businesses who are not compliant in other program accounts where the non-compliance is not significant?

The CRA does not have the authority to make an exception to the legislative restriction that applies to the payment of GST/HST refunds to businesses that are not compliant in other program accounts.

7. Can businesses request relief from penalties and interest if they cannot meet the current deadlines for GST/HST payments, remittances and returns?

The CRA understands that businesses are experiencing unprecedented challenges. Businesses that are unable to file a GST/HST return or make a payment or remittance by the deadlines because of COVID-19 can request the cancellation of penalty and interest charged to their account.

Businesses will be asked to explain how the COVID-19 pandemic is preventing them from meeting their obligations and to provide information to support their request. A CRA officer may request additional information to verify the explanation, if necessary. We will strive for flexibility with deadlines to submit supporting documentation, recognizing taxpayers’ unique circumstances.

Businesses are encouraged to use the CRA’s electronic portals to submit their request.

The CRA’s Taxpayer Relief Program will review COVID-19 related requests on a priority basis.

Electronic signatures

1. Will the CRA accept electronic signatures on GST/HST documents, including returns, during the COVID-19 crisis?

The CRA is committed to making it easier for businesses to submit their GST/HST documents, including returns, rebate applications and election forms.

In continuing with this commitment, as a temporary measure the CRA will be accepting electronic signatures for GST/HST documents submitted online. In particular, effective July 6, 2020, businesses will be able to use a new electronic service to submit a GST/HST document with an electronic signature. The link to this new service will be found on the MyBA main web page of the GST/HST program account menu.

In some cases the signature on a form submitted through MyBA will not be that of the person submitting the form, and there will be reliance on the person submitting the form to obtain a valid signature.

2. I file my GST/HST returns and forms by paper. Will the new service affect this process at all?

No, this will not affect the paper submission process in any way. If you would like to switch to electronic submission for your returns, elections, and forms, go to E-Services for more information.

3. Does this new service replace other digital services that allow me to file my rebate or returns online or in MyBA?

No, this service is available for GST/HST forms where no existing online filing option already exists. This new service has been launched as a temporary measure to provide more flexible options during the COVID-19 crisis.

Other GST/HST COVID-19 related topics

1. Will my GST/HST return be processed if I file it electronically?

GST/HST returns that are filed electronically will be processed. Delays in processing may continue to occur as operations continue to resume.

To check on the status of your GST/HST return, please log in to My Business Account where there are many self-service options such as viewing expected and filed returns, viewing the notice of assessment and signing up for direct deposit. For more information, go to My Business Account.

2. Will my GST/HST return be processed if I mail in a paper copy?

GST/HST returns that are paper filed will be processed. Delays in processing may continue to occur as operations continue to resume. However, we encourage registrants to file electronically. For more information, go to My Business Account.

3. If I am expecting a refund after filing my GST/HST return, will my refund still be processed and issued?

Yes if the account is compliant. Delays in processing may continue to occur as operations continue to resume. If you would like to ensure the fastest refund possible, you can sign in to My Business Account and set up your direct deposit information.

4. Who can I contact to get more information on my GST/HST account during this pandemic?

We encourage clients to use our self-serve options like My Business Account and our website to find information and to find answers to their questions. Log in to My Business Account to check the status of your GST/HST account. For more information, go to My Business Account.

5. Will GST/HST rebates continue to be processed?

GST/HST rebates will be processed. Delays in processing may continue to occur as operations continue to resume.