HST

For all payments, indicate your 15 digit HST number (ending RT0001, in most cases) and the period it applies to (year or quarter).

On-line banking
Set up the account as you would any other bill payment; look for HST as a payee.
Via CRA’s “My Payment” Service
This service allows payments from online bank accounts. See http://www.cra-arc.gc.ca/esrvc-srvce/tx/mypymnt/menu-eng.html

Note that HST payments are business payments, and as such must be made from a business account.

If you bank with BMO or CIBC, you cannot use this service, but should be able to set up your payment via on-line banking.

In-person at a bank
To pay in person at a bank, you require a personalized remittance voucher. You may receive these by mail, order them on-line via CRA’s “My Account” service, and request them by calling CRA at 1-800-959-8281 (personal taxes) or 1-800-959-5525 (business taxes).

By mail
Make your cheque payable to “Receiver General of Canada”

Send cheques to:
Canada Revenue Agency
875 Heron Road
Ottawa ON K1A 1B1

Attach a remittance voucher, or else clearly mark on the cheque your legal business name, 15 digit business number (ending RT0001, in most cases) and the period it applies to (year or quarter).

At a CRA Office
In Toronto, payments can be made at 1 Front Street West. An external drop box is available and all payments are time and date stamped when received.

For more information, see: https://www.canada.ca/en/revenue-agency/services/make-a-payment-canada-revenue-agency.html

If your gross self-employment earnings (total sales) worldwide exceed $30,000, Canadian law requires you to register, charge and remit GST/HST (a few exceptions do apply).

If you report over $30,000 of self-employment earnings (before expenses) and do not register, CRA may assign you a business number retroactively, and you will be responsible to pay back GST/HST taxes to the time the number was activated.

You can get an HST number by phoning CRA’s business inquiries line at 1-800-959-5525, or by completing form RC1 and mailing it to CRA. Unless you have over $1.5 million in sales, we recommend registering as an annual filer (as opposed to a quarterly filer) – this will save you administrative work and accounting fees.

You will receive your HST number in about business 10 days.

Note: If you owe over $3,000 in HST for the year, you must make instalments quarterly or monthly. If you do not, CRA will charge you interest on the balance owing.

If you are an individual and you have a December 31 fiscal year-end, you have to file your GST/HST return by June 15 and pay the amount you owe by April 30. In all other cases, you have to file your GST/HST return and pay the amount you owe no later than three months after the end of your fiscal year.
GST/HST is charged at the rate of the province where you are delivering your goods / services; for example 13% in Ontario and 5% in Alberta. For clients outside Canada, do not charge GST/HST.

We recommend you keep track of how much GST/HST you collect during the year, so that you have an accurate record when you file your GST/HST return.

You may subtract HST you pay on expenses from HST collected to reduce the amount of GST/HST you have to remit.

If our office is preparing your HST return, we can calculate the amount of HST you paid on your expenses, provided your expenses were incurred in Ontario (a 13% province).

However, if you worked out of province or outside Canada, you should track those expenses separately.

If you owe over $3,000 in HST for the year, you must make instalments quarterly or monthly. If you do not, CRA will charge you interest on the balance owing.
For the first three quarterly instalments of the year, we you should remit ¼ of the amount owed the prior year. Alternatively, you can remit the full amount of HST you collected.

When your HST return is prepared, your input tax credits (aka the HST you paid on business expenses) will be calculated and will often reduce (or even eliminate) the final instalment owing.

If our office is preparing your GST/HST return, please indicate the amount of the HST instalments you paid during the year.

HST instalments are due by the end of the month following the fiscal quarter-end. In the case of a December 31 year-end, instalments are due: April 30, July 31, October 31 and January 31.

Attach your remittance voucher, or else clearly mark on the cheque your legal business name, 15 digit business number (ending RT0001, in most cases) and the period it applies to (year or quarter).

Being a quarterly filer means that you need to file quarterly HST returns (i.e. 4 returns per year).

Paying quarterly instalments means you send in money to CRA 4 times during the year, but only file an HST return annually. If you owe $3,000 of HST in a given year (HST collected exceeds HST paid out by over $3,000) then you must make quarterly instalments of HST.

Unless you have over $1.5 million in sales, we recommend registering as an annual filer (as opposed to a quarterly filer) – this will save you administrative work and accounting fees.

The HST credit is a benefit (paid by periodic cheques or direct deposit) from the government to low-income earners, and is meant to offset a portion of HST paid by individuals in their purchase of goods and services. This is not related to having an HST number, which is required by businesses earning over $30,000 in sales in a year.
The quick method is an alternative method of calculating HST. The remittance rates are less than the GST/HST charged, but you cannot claim input tax credits (i.e. the HST you paid on business expenses).

The quick method can be beneficial in cases where minimal business expenses are incurred.

If you would like to use the quick method, you must register as a quick method filer with CRA, and must meet certain criteria in order to qualify.

You can cancel an HST number by phoning CRA’s business inquiries line at 1-800-959-5525, or by completing form RC145 and mailing it to CRA. Once you cancel your number, you will be required to file one final HST return.

Note that you may not cancel your number if your sales are over $30,000.