Running a business in Canada means balancing growth with regulatory compliance. One of the most common areas where business owners slip up is understanding when their GST/HST payments are actually due.
Missing your filing deadlines or payment schedule can trigger CRA penalties, interest charges, or even compliance reviews. The good news? Once you understand your filing periods, timing of payments, and registration obligations, managing GST/HST becomes a simple monthly or quarterly routine.
This guide breaks down everything you need to know — from how GST/HST rates work to how to stay compliant under Canada Revenue Agency (CRA) guidelines — so you can confidently handle your business tax obligations.
What Is GST?
The Goods and Services Tax (GST) is a federal sales tax of 5% applied to most goods and services sold in Canada. Every registered business must collect GST from customers on taxable sales, then remit it to the Canada Revenue Agency (CRA).
What Is HST (Harmonized Sales Tax)?
HST (Harmonized Sales Tax) merges the federal GST and the provincial sales tax (PST) into one combined tax, simplifying collection and remittance.
It applies only in certain provinces that have harmonized their systems with the federal government.
Current HST Provinces and Rates (2025)
| Province |
HST Rate |
| Ontario |
13% |
| New Brunswick |
15% |
| Newfoundland and Labrador |
15% |
| Nova Scotia |
15% |
| Prince Edward Island |
15% |
Businesses in non-HST provinces — like British Columbia, Alberta, Saskatchewan, Manitoba, and Quebec — continue to charge GST (5%), often alongside a separate PST or QST.
In Quebec, GST is administered federally, while QST is handled by Revenu Québec.
For clarity, always verify your GST/HST rates for each province where you do business — especially if you sell across Canada.
You can also claim Input Tax Credits (ITCs) to recover the GST/HST you’ve paid on eligible business expenses. This means you only remit the net amount — the difference between the tax you collected from customers and the tax you paid on purchases made to operate your business.
Whenever your business buys goods or services for commercial use — like office rent, advertising, accounting fees, or equipment — you’re usually charged GST or HST. The CRA allows you to claim that amount back as an ITC, since it’s a necessary cost of doing business.
How ITCs Work
Let’s say you collect $500 in GST from clients during a month, but you also paid $300 in GST on business purchases.
You don’t remit the full $500. You only owe the CRA $200, calculated as:
GST Collected – GST Paid on Purchases = Net Tax Owing
If your business spends more on eligible purchases than it collects in sales tax (common for startups, seasonal companies, or exporters), the CRA will issue you a refund instead of a bill.
Expenses That Qualify for ITCs
You can usually claim ITCs on GST/HST paid for:
- Office rent, utilities, and maintenance
- Advertising, marketing, and professional services (e.g., accountants, lawyers)
- Computer equipment, software, and office supplies
- Business travel, fuel, and vehicle costs used for work
- Subcontractor payments or service providers used in your operations
Some expenses, like personal meals, club memberships, or life insurance premiums, do not qualify for ITCs.
CRA Rules to Remember
- You must have a valid receipt or invoice showing the GST/HST paid and the vendor’s Business Number.
- The expense must be used primarily for business (personal or mixed-use costs must be prorated).
- You generally have four years from your filing due date to claim ITCs.
- Keep detailed records for at least six years — CRA can request verification at any point within that period.
Mesa CPA Tip: Many new business owners forget to record small recurring expenses (like software subscriptions or digital tools). These add up — and claiming the GST/HST portion as ITCs can save hundreds per year.
Example
You invoice a client for $1,000 + GST ($50) and pay $20 GST on business expenses.
You owe CRA $30 ($50 collected – $20 paid).
If instead you spent $70 in GST on expenses and collected $50, you’d receive a $20 refund, often issued by direct deposit.
Maximizing ITCs ensures you’re not overpaying tax and helps keep your business cash flow healthy — a key part of regulatory compliance for all Canadian small businesses.
Who Needs to Pay GST/HST?
Not every business is automatically required to register, but once you hit the threshold or make taxable supplies, you must.
1. Mandatory Registration
You must register for a GST/HST account if:
- You earn $30,000 or more in taxable sales over four consecutive quarters.
- You sell taxable goods or services in Canada.
- You’re a non-resident selling to Canadian consumers (including online sales or digital services).
You can register:
- Online via Business Registration Online (BRO)
- By mail or fax using Form RC1 – Request for a Business Number (BN)
This registration process gives you your GST/HST number, which you’ll need to charge, collect, and remit tax properly.
2. Voluntary Registration
If you earn less than $30,000, you can voluntarily register to:
- Appear more credible to clients.
- Claim Input Tax Credits (ITCs).
- Get access to GST/HST Credit deposits through direct deposit.
3. Exempt and Zero-Rated Supplies
- Exempt Supplies: You don’t charge GST/HST and can’t claim ITCs.
- Examples: residential rent, health care, and most financial services.
- Zero-Rated Supplies: You charge GST/HST at 0%, but can still claim ITCs.
- Examples: basic groceries, prescription drugs, and some exports.
Understanding which category your sales fall under is essential for regulatory compliance and accurate reporting.
GST/HST Filing and Payment Deadlines
Once registered, your business will be assigned a filing frequency based on annual taxable revenue. Each frequency has specific filing periods and timing of payments.
Failing to understand this is one of the main reasons businesses accidentally miss CRA deadlines — especially around a public holiday, when banks and CRA systems may delay processing.
a. Monthly Filers
Who this applies to:
Businesses with more than $6 million in annual taxable sales must file monthly, though smaller businesses may opt in voluntarily to manage cash flow or claim refunds faster.
CRA guidelines:
- Filing deadline: 1 month after the end of the reporting period.
- Payment deadline: Same day as the filing due date.
Example:
Reporting period ends January 31 → Payment and filing due February 28.
Advantages:
- Quicker access to ITC refunds.
- Easier reconciliation of GST/HST records.
- Better real-time view of tax liabilities.
Note: If you file monthly, the CRA expects consistent, timely submissions — missing one period can affect your account status and future Form GST499-1 (Return for Adjustment) filings.
b. Quarterly Filers
Who this applies to:
Businesses with annual taxable sales between $1.5 million and $6 million must file quarterly. This is the sweet spot for many Canadian small businesses because it balances workload with timely cash management.
Filing deadlines:
- Return due: 1 month after the quarter ends.
- Payment due: Same day.
Quarterly examples:
| Quarter |
Period Covered |
Due Date |
| Q1 |
Jan 1 - Mar 31 |
Apr 30 |
| Q2 |
Apr 1 - Jun 30 |
Jul 31 |
| Q3 |
Jul 1 - Sep 30 |
Oct 31 |
| Q4 |
Oct 1 - Dec 31 |
Jan 31 |
Why it matters:
Quarterly filing helps you stay compliant without overwhelming admin work. It’s also easier to adjust for tax calculations and reconcile Zero-Rated Supplies or rebates each quarter.
c. Annual Filers
Who this applies to:
Businesses earning less than $1.5 million in annual taxable revenue can choose annual filing.
Common for:
- Consultants
- Freelancers
- Small service providers
Filing and payment deadlines:
| Entity Type |
Return Due Date |
Payment Due Date |
| Sole Proprietor |
June 15 |
April 30 |
| Corporation |
3 months after fiscal year-end |
Same as filing date |
Example:
If your corporation’s year-end is December 31 → both payment and filing due by March 31.
Pro tip:
Even if you file annually, consider making quarterly installment payments to avoid a large year-end balance — this helps smooth out the timing of payments and prevents CRA penalties and interest.
Summary Table: GST/HST Filing Periods
| Filing Frequency |
Filing Due Date |
Payment Due Date |
Required Form |
| Monthly |
1 month after period end |
Same as filing date |
GST34-2 / GST499-1 |
| Quarterly |
1 month after quarter end |
Same as filing date |
GST34-2 |
Annual
(Individual) |
June 15 |
April 30 |
GST34-3 |
| Annual (Corporation) |
3 months after fiscal year-end |
Same as filing date |
GST34-3 |
How To File and Pay GST/HST
You can file your GST/HST return and make payments in several ways — depending on your setup and comfort level.
1. Online through CRA My Business Account
The easiest and most common method. You can:
- File returns through electronic filing.
- View payment history.
- Enroll in direct deposit for refunds.
- Submit adjustments using Form GST499-1 if errors occur.
2. Through Business Registration Online
If you’re newly registered, you can file through your Business Registration Online portal or through compatible accounting platforms. It’s part of the same registration process that gives you your CRA Business Number.
3. Accounting Software Integration
Platforms like QuickBooks, Wagepoint, and Xero automatically track GST/HST and generate ready-to-file returns.
They calculate taxes on sales vs expenses, run tax calculations, and let you Claim a GST/HST rebate where eligible.
What To Do If You Missed Your Deadline
Even if you’ve missed your due date, filing late is always better than not filing at all. The CRA distinguishes between late filing and late payment, and each has its own penalties.
1. File Your Return Immediately
Submit your GST/HST return as soon as possible — even without full payment. This stops the late filing penalty clock.
2. Make a Partial Payment
If you can’t pay in full, pay what you can. The CRA charges daily interest on outstanding balances, so partial payments minimize future costs.
You can make payments:
- Through online banking (add “GST/HST – RC0001” as a payee).
- By direct deposit or pre-authorized debit through your CRA account.
- At your bank using a CRA remittance voucher.
- By cheque to the Receiver General for Canada.
3. Understand CRA Penalties
Late Filing Penalty:
1% of the balance owing + 0.25% for each full month the return is late (up to 12 months).
Example:
If $5,000 is owed and you file 4 months late →
1% ($50) + (0.25% × 4 × $5,000) = $100 total penalty.
Interest:
- Compounded daily on unpaid balances.
- Based on CRA’s prescribed rate (updated quarterly).
Tip: CRA penalties and interest are not tax-deductible — prevention is cheaper than correction.
4. Request Penalty and Interest Relief
If you missed a deadline due to a reasonable cause (e.g., illness, disaster, or CRA error), you can apply for relief under the Taxpayer Relief Program.
Submit a written request explaining the situation, supported by documentation. CRA may waive or reduce penalties.
5. Automate Your Compliance
To avoid future late filings:
- Set CRA email notifications.
- Use accounting software to track filing periods.
- Schedule recurring reminders tied to your business registration data.
- Reconcile GST/HST monthly — even if you file quarterly.
- Double-check CRA hours if your deadline falls near a public holiday.
Common CRA Forms for GST/HST Management
| Form |
Purpose |
| Form RC1 |
Register your business and request a Business Number (BN) |
| Form GST34-2 |
Standard GST/HST return for most registrants |
| Form GST34-3 |
Annual return for individuals or small businesses |
| Form |
Request for adjustment or credit to a previous return |
Keeping these forms up to date ensures smooth processing under CRA guidelines and helps you quickly correct or amend errors if they arise.
Frequently Asked Questions (FAQs)
1. What happens if I overpay my GST/HST?
You can either apply the credit to your next return or Claim a GST/HST rebate using Form GST189.
2. Can I change my filing frequency?
Yes. You can request a change through CRA My Business Account, typically after a full fiscal year of consistent filings.
3. How do I handle Zero-Rated Supplies?
Charge GST/HST at 0%, but still claim ITCs on related expenses. Keep detailed records of these sales and purchases for CRA review.
4. Can I pay GST/HST by direct deposit?
You can receive refunds by direct deposit, but payments must be made through CRA-approved channels like online banking or pre-authorized debit.
5. How do I correct a filing error?
File an adjustment using Form GST499-1 or submit corrections online via your CRA account.
Pro Tips for Staying Compliant
- Sync your filing deadlines: Add reminders to your calendar based on your reporting frequency.
- Set up direct deposit: Receive GST/HST Credit and refunds faster.
- Reconcile regularly: Match your sales tax payable with actual bank transactions.
- Document everything: CRA requires you to keep records for at least six years.
- Use professional support: If unsure about tax calculations or Zero-Rated/Exempt Supplies, consult an accountant to avoid costly errors.
Bottom Line
Understanding your GST/HST payment due dates isn’t just about avoiding penalties and interest — it’s about maintaining trust with the CRA and keeping your business running smoothly.
Whether you’re filing monthly, quarterly, or annually, the key is staying consistent and proactive. Register properly through Form RC1, follow CRA guidelines, automate your reminders, and leverage tools like Business Registration Online and direct deposit for seamless compliance.
At the end of the day, the goal is simple:
➡️ File on time, pay on time, and claim your credits and rebates confidently.
Key Takeaways
Here’s a quick summary you can bookmark or share with your bookkeeper.
GST/HST Overview
- GST is a 5% federal sales tax on most goods and services in Canada.
- HST harmonizes GST and provincial sales tax in Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island at rates between 13% and 15%.
- Non-HST provinces (BC, Alberta, Saskatchewan, Manitoba, Quebec) charge GST plus their own PST or QST; Quebec’s QST is administered provincially by Revenu Québec.
- Businesses must register for GST/HST if taxable sales exceed $30,000 over four consecutive calendar quarters; voluntary registration is allowed below that threshold.
Input Tax Credits (ITCs)
- Businesses can claim ITCs to recover GST/HST paid on eligible business expenses such as office rent, advertising, professional services, equipment, and business travel.
- ITC claims require valid receipts/invoices with GST/HST and vendor BN, with expenses primarily for business use and detailed documentation kept for at least four years.
- Net tax owing = GST/HST collected – GST/HST paid on purchases; if purchases exceed collected tax, a refund may be issued.
Filing and Payment Periods
- Filing frequency depends on annual taxable sales:
- Monthly (> $6 million)
- Quarterly ($1.5 million to $6 million)
- Annual (< $1.5 million)
- Monthly and quarterly filers must file and pay one month after the reporting period ends.
- Sole proprietors filing annually have a return due date of June 15 and payment due April 30.
- Corporations filing annually have both return and payment due three months after fiscal year-end.
- Quarterly filing dates correspond to standard calendar quarters with returns due one month after quarter end (e.g., Q1 due April 30).
Penalties and Interest
- Late filing penalties: 1% of unpaid tax plus 0.25% per full month late (max 12 months).
- Interest charged daily on unpaid tax at CRA’s prescribed interest rates (updated quarterly).
- Penalties and interest are non-deductible expenses.
- Taxpayer Relief Program provides relief for penalties/interest with reasonable cause documentation.
Filing and Payment Methods
- Returns can be filed online via CRA My Business Account, Business Registration Online, supported accounting software (QuickBooks, Xero, Wagepoint), or by mail (Forms GST34-2, GST499-1).
- Payments can be made via:
- Online banking (payee GST/HST – RC0001)
- Direct deposit or pre-authorized debit
- Cheque payable to Receiver General for Canada
- Financial institutions with remittance voucher
- Errors can be corrected via Form GST499-1 or online adjustments.
Additional Compliance Tips
- Even if no GST/HST is owed, filing a return is mandatory.
- For businesses selling across provinces, charge tax based on customer location.
- Use software and CRA email notifications to avoid missed deadlines.
- Keep records for a minimum of six years.
- Consider quarterly installment payments when filing annually to avoid large balances.
- Consult accountants for complex issues like zero-rated or exempt supplies.