How to File an HST Return

 The HST (Harmonized Sales Tax) is a consumption tax, and it is 13% in Ontario. If any business collects it on sales, it has to remit it to the CRA after the adjustment of ITCs. The final customer has an obligation to this tax and must file an HST return. Its filing and payment deadlines differ and are monthly, quarterly, or yearly. If you deal in exempt supplies, you do not need to file it. On the other hand, you must file this return if you are not a small supplier who deals in taxable supplies.



Methods to Calculate HST:-


There are two methods to calculate HST: 1) Quick Method of HST and 2) Regular Method of HST.


  1. Quick Method: It is a simpler method than the other one to calculate HST. However, this method allows small businesses to calculate HST and remit it to the CRA (Canada Revenue Agency).


  1. Regular Method: If you want to save as much money as possible on business expenses, HST is no omission. Then, it is where ITCs (Input Tax Credits) step in. For instance, if you pay HST on any other expenses linked with your business, you can claim it as an ITC.


How to Pay HST?


You can pay HST in different ways in Canada, which are as follows:


  1. Electronically: Utilize CRA’s My Payment service page and pay it.

  2. Via a Phone: Use your bank or credit card’s online or telephone banking services to pay it.

  3. Pre-authorizing: You can debit your HST amount directly from your bank account if you authorize the CRA for this.

  4. Walk-in Payment: Use the form RC-158 and proceed with Netfile/Telefile remittance voucher to pay this way.

  5. Through CRA’s Mail: Mail back your remittance voucher with cheque/money to the CRA after completing the document you received via mail.


In a Nutshell:-


File an HST return to the CRA using your preferred payment method and feel relieved from this duty.


.Author Bio:-

Sohail Afzal is a CMA (Certified Management Accountant) and the Founding Partner of a professional accounting firm, GTA Accounting. He understands the needs of small-scale businesses & corporations and offers them tax advice to overcome their tax burdens. He is a professional author who often writes articles related to accounting.


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