Filing your GST/HST return shouldn’t feel like a guessing game. Yet one wrong number or missed deadline can trigger CRA penalties, and nobody wants that letter in the mail.
This guide breaks it all down so you can file with confidence.
What we’ll cover:
- Who needs to register for GST/HST (and who doesn’t)
- Filing deadlines based on your reporting period
- Step-by-step instructions for online and paper filing
- How to claim Input Tax Credits the right way
- Common mistakes that cost business owners money
At NRK Accounting, we handle GST/HST filings for small businesses across Toronto and the GTA every day. If you’d rather hand this off to a pro, we’re here to help.
Who Needs to Register for GST/HST (And Who Doesn’t)
Not every business in Canada needs to collect GST/HST. It all comes down to one number: $30,000.
The Small Supplier Threshold
You must register for GST/HST when your business exceeds $30,000 in taxable revenue over four consecutive calendar quarters or in a single calendar quarter. This is before expenses are deducted.
Fall below that? You’re considered a “small supplier”, and registration is optional.
Who Must Register
| Business Type | Threshold |
| Most businesses | $30,000 in taxable sales |
| Public service bodies & charities | $50,000 in taxable sales |
| Taxi/rideshare drivers | $0 (must register immediately) |
When Voluntary Registration Makes Sense
Even if you’re under the threshold, registering early lets you:
- Claim Input Tax Credits (ITCs) on business expenses like equipment, software, and supplies
- Appear more established to B2B clients who expect GST/HST on invoices
- Avoid scrambling to register when you suddenly cross $30,000
Pro tip: Sudden contract wins can push you over the limit quickly. Registering early can avoid rushed compliance later.
Not sure where you stand? NRK Accounting can assess your situation and handle your GST/HST registration from start to finish.
Filing Deadlines Based on Your Reporting Period
Miss a GST/HST deadline and the CRA will come knocking. The penalties aren’t pretty, and interest starts piling up fast.
Your deadline depends on how often you’re required to file.
Quick Reference: GST/HST Deadlines
| Reporting Period | Filing & Payment Deadline |
| Monthly | 1 month after the reporting period ends |
| Quarterly | 1 month after the quarter ends |
| Annual (most businesses) | 3 months after fiscal year-end |
| Annual (self-employed with Dec 31 year-end) | Filing: June 15 / Payment: April 30 |
If your due date falls on a Saturday, Sunday, or public holiday recognized by the CRA, your return or payment is on time if received on the next business day.
How Reporting Periods Are Assigned
Your reporting period depends on your annual revenues. Here’s the breakdown:
- Under $1.5 million in annual sales: Default is annual, but you can opt for quarterly or monthly
- $1.5 million to $6 million: Quarterly filing required
- Over $6 million: Monthly filing required
Pro tip: If you want to switch from annual filing to quarterly filing, it must be done before the end of February. Quarterly filers recover ITCs faster throughout the year.
Step-by-Step Instructions for Online and Paper Filing
If you are a GST/HST registrant with a reporting period that begins in 2024 or later, you must file your returns electronically. Paper filing now triggers a penalty for most businesses.
The exceptions? Charities and selected listed financial institutions.
How to File Online (3 Methods)
1. CRA My Business Account (Easiest)
You can file your GST/HST return and eligible rebates directly with the CRA by signing into your CRA account. No access code needed.
Steps:
- Log in to My Business Account
- Click GST/HST from the left menu
- Select File a Return
- Enter your reporting period dates
- Input your totals for GST/HST collected (Line 105) and ITCs claimed (Line 108)
- Review and submit
2. GST/HST NETFILE (Without CRA Account)
If you do not have a CRA account, you can file your GST/HST return directly with the CRA using an online form with an access code.
You’ll need:
- Your Business Number (BN)
- A 4-digit access code (mailed by CRA or available online)
- Reporting period “from” and “to” dates
3. Third-Party Accounting Software
Using online solutions like QuickBooks, you can easily file your GST directly with the CRA. Most accounting software generates the return automatically and submits it through GST/HST Internet File Transfer.
Can You Still File by Paper?
Only if you’re a charity, selected financial institution, or have a CRA-approved exemption. You will be charged a penalty if you file by mail without qualifying for an exception.
If you do qualify, mail Form GST34-2 to the address printed on your return.
Feeling overwhelmed? NRK Accounting handles GST/HST filings for small businesses across Toronto every day. We’ll make sure your return is accurate, on time, and fully compliant. [Book a free consultation] to hand this off to the pros.
How to Claim Input Tax Credits the Right Way
Input Tax Credits (ITCs) are one of the biggest perks of being a GST/HST registrant. They let you recover the tax you paid on business expenses. But claim them wrong, and you’re handing the CRA an invitation to audit.
What Are ITCs?
Input tax credits are essentially the sum of the GST/HST that you have paid on any legitimate business expenses. When you file your return, you subtract your ITCs from the GST/HST you collected. The difference is what you owe (or what the CRA owes you).
Who Can Claim ITCs?
Businesses can claim an ITC if all the following conditions are met:
- You’re registered for GST/HST
- The purchase was for your commercial activities
- You paid (or owe) the GST/HST on the expense
- You have proper documentation to support the claim
- You claim within the time limit (typically 4 years)
Important: Only the named recipient of the supply is entitled to claim an ITC. If Company A pays for something but it’s invoiced to Company B, Company B can’t claim the credit. This is one of the most common reasons the CRA denies ITCs during audits.
What You Can Claim ITCs On
| Eligible Expenses | Capital Expenses |
| Office supplies and software | Equipment and machinery |
| Professional services (legal, accounting) | Vehicles (with limitations) |
| Advertising and marketing | Computers and furniture |
| Utilities for your business | Leasehold improvements |
| Inventory purchases | Real property (commercial) |
What You Cannot Claim ITCs On
Not everything qualifies. There are purchases and expenses for which you may not be eligible to claim ITCs, including:
- Personal expenses (even if paid from a business account)
- Goods or services used to make exempt supplies
- Membership fees or dues to any club whose main purpose is to provide recreation, dining, or sporting facilities (golf clubs, fitness clubs, etc.)
- Meals and entertainment (only 50% claimable)
Documentation Requirements
The CRA is strict about this. Suppliers have to provide specific information on the invoices, receipts, contracts, or other business papers for you to claim ITCs. Your documentation must include:
- Supplier’s business name and GST/HST number
- Date of purchase
- Total amount paid (including tax)
- Description of goods or services
Pro tip: The CRA requires businesses to keep records for at least six years. Missing receipts = denied claims.
Common Mistakes That Cost Business Owners Money
Filing GST/HST returns seems straightforward. Until it isn’t. Even minor mistakes can result in costly penalties, interest charges, or even audits from the CRA.
Here are the slip-ups we see most often.
1. Missing the $30,000 Registration Threshold
Businesses that delay registration may miss out on potential Input Tax Credits, reducing their ability to recover GST/HST paid on expenses.
Once you cross the threshold, you should have been collecting tax. If you weren’t, that money comes out of your pocket.
2. Mixing Personal and Business Expenses
Mixing personal and business expenses is perhaps the most common error. You can’t claim ITCs on personal expenses, even if paid from a business account.
The fix? Separate bank accounts. Separate credit cards. No exceptions.
3. Claiming ITCs Without Proper Documentation
No receipt, no credit. It’s that simple. Poor record-keeping can lead to denied ITC claims, increased audit risks, and financial penalties.
Keep digital backups. Use accounting software. Don’t rely on shoeboxes full of crumpled receipts.
4. Applying the Wrong Tax Rate
Business owners should verify the applicable GST/HST rate based on the customer’s location. Ontario charges 13% HST. The Atlantic provinces charge 15%. Alberta only has 5% GST. Mess this up, and you’re either overcharging customers or underpaying the CRA.
5. Filing Late (or Not at All)
Late filing with a balance owing triggers a penalty calculated as 1% of your balance owing plus 0.25% for each month you’re late, up to 12 months.
Filing your GST/HST returns late or making mistakes in your filings can trigger an audit. The CRA pays attention to patterns.
6. Collecting GST/HST But Not Remitting It
Some businesses collect GST/HST from customers but fail to remit the tax to the CRA. This often happens due to cash flow issues or accounting mismanagement.
This is a big one. The CRA considers collected GST/HST as money held in trust for the government. Spending it on operations is a fast track to serious legal trouble.
Pro tip: Businesses should separate GST/HST collected into a dedicated bank account. Don’t touch it until filing day.
7. Inconsistent Reporting Between GST/HST and Income Tax
The CRA cross-references your GST/HST returns with income tax filings. If the reported sales figures do not align, it may trigger an audit.
Your books need to tell the same story everywhere.
Ready to File Smarter With NRK Accounting?
Filing your GST/HST return doesn’t have to be stressful. With the right systems in place, you can stay compliant, recover every dollar you’re owed, and keep the CRA off your back.
Key takeaways:
- Register for GST/HST once you hit $30,000 in taxable revenue (or earlier if ITCs make sense)
- Know your filing deadline based on your reporting period
- File electronically through CRA My Business Account or NETFILE
- Keep receipts and invoices for at least six years
- Separate personal and business expenses to avoid ITC denials
- Never spend collected GST/HST before remitting it
NRK Accounting has helped small businesses across Toronto and North York handle GST/HST filings, bookkeeping, and CRA compliance for over 20 years. If you’d rather focus on running your business than chasing deadlines and paperwork, book a free consultation and let us take it from here.
