HST/GST Tips
Navigating the complexities of Goods and Services Tax (GST) and Harmonized Sales Tax (HST) is crucial for businesses to ensure compliance and financial stability. Understanding GST/HST regulations, filing requirements, and input tax credits can help businesses streamline operations and minimize tax liabilities. Leveraging technology solutions and seeking professional guidance can further enhance GST/HST management. In this blog, we will discuss practical strategies for businesses to effectively manage their GST/HST obligations and optimize tax processes.
— The Noseworthy Chapman Team
Helpful Links & Guides
Do I need to register for HST/GST?
Should you charge HST/GST on your sales?
There are three basic types of sales:
- taxable
- zero-rated
- exempt
What can I claim HST/GST on?
Claiming Input Tax Credits (ITCs) allows businesses to recover HST/GST paid on eligible purchases and expenses related to their business activities.
What expenses are HST/GST exempt?
Be mindful when completing HST/GST returns as not all expenses are eligible to be claimed as ITC (Input tax credits).
Common instances where HST/GST ITCs are claimed in error include:
- Insurance (the 15% is a provincial tax, not HST/GST)
- Interest (there is no HST/GST on interest)
- Residential rents are an exempt activity not eligible for ITCs
Quick Method Accounting
The quick method simplifies GST/HST remittance for small Canadian businesses by eliminating the need to report actual taxes paid on purchases, reducing paperwork and easing tax reporting.
When To File
Knowing your filing deadlines is important to ensure you avoid interest and penalties on late filings.
HST/GST Filing Deadlines:
Director's Liability
HST/GST accounts are considered trust accounts by CRA. This means that directors can be held personally liable for nonpayment of HST/GST by a company.
Bookmark this blog so you can return to ensure you are familiar with best practices for registering, charging, claiming, and filing for HST and GST each year!
Noseworthy Chapman has been a trusted partner to hundreds of businesses in the province for over 40 years. Contact us to see how we can make 2024 the most profitable yet.