This guide is an everything you need to know in regards to GST Netfile and HST Netfile for your small business. Before we begin we would like to add that Accufile does help you file for your GST and HST. When you are filing a business or corporate tax return with us, we will also help you file your GST and HST. Contact us for more details at [email protected] or visit our site Accufile.
What is GST Netfile and HST Netfile for your business?
Your small business may need to collect taxes on behalf of the CRA. If you are making over $30,000 in revenue for your small business, you will need to start collecting GST and or HST depending on the province you are in. GST / HST is a sales tax for all service related businesses. If you are a contractor or own a business and you charge for sales, then you will need to start collecting for the CRA if you are over $30,000.
How do I register for GST / HST?
Once you have established that you will need to start collecting GST / HST, you will need to register for your account. The best way to register is to call the CRA at 1-800-959-5525.
When you register you will be asked a series of questions. One will be how much you think you will make approximately in the year. You can answer your approximate amount as it does not have to be accurate. They just need to know that you are over the minimum amount.
They will also ask how often do you want to file the return. We always recommend to our clients to choose annually. That way you only need to deal with them once a year. You can register monthly or quarterly as well. But you will need to file every month or every quarter depending on what you choose.
How do I calculate my business GST / HST?
GST / HST is calculated depending on what province you are in. British Columbia as of the date of this article charges 5% on their GST for their services. Ontario charges HST of 13% as of right now. Other provinces may defer and you can check out the CRA for the latest percentages.
When you are charging your clients, you will charge them on your total service. For example, Tom is a business consultant and is going to charge his client $1000. In BC he will charge 5% of GST on this amount so his invoice total will be $1050.00.
Please remember that GST / HST is an offset
What does this mean? Well when you collect your GST / HST from your clients but in turn you are also paying out GST / HST on products that you buy directly related to your business. These GST / HST amounts that you are paying out are an offset and are called Input tax credits. So you total up all your GST / HST amounts (input tax credits) and these will go against what you collected. So for example, Tom collected $50 in GST. For the same period Tom paid out $30 in GST / HST. Therefore tom only owes the CRA $20 in GST / HST remittance.
GST / HST is an offset, make sure you are only paying the difference
The GST / HST form I received in the mail is confusing. Am I doing this right?
At any moment in time you are more than welcome to have us help you. Our consulting services are free if you are a client and we can help you file your GST / HST taxes. Contact us by email at [email protected] and we will get started.
How do I file GST Netfile and HST Netfile online?
There are two ways of filing your GST / HST. You can either fill out the form and mail in your details to the CRA. Or two you can file for your GST netfile and HST netfile online. The best way to file for your GST netfile or HST is to use the netfile service the CRA provides. This is the fastest and easiest way for filing your return. You may go to GST / HST Netfile and begin your process to file your return.
Note that you will need the form they mailed to you as it has valuable information to help you file. You will need your business number, dates that you need to file, and most importantly your access code.
What if I cannot find my access code?
If you are missing your access code you can still go online to change or retrieve the code. Best to go to this link and choose need an access code and follow the steps to help you retrieve and or set a new code for your business.
If you are still having difficulty in finding your code, please call the CRA at 1-800-959-5525. Please also note if you are a client of ours we can also get your code for you as well. Contact us and we can help you on your way.
I have filed my GST / HST but how do I make payment?
The best two ways of paying the amount that you owe for GST / HST is to either pay from your online banking or two pay on the Canada Revenue Site. If you are paying from your online banking, it is best to look for CRA payments on your billing section of your bank online. There you will find many options to pay the CRA and to what account. Look for the GST / HST remittance section and you can begin to set up there. If you are wanting to pay online through the CRA site, then go to this link for CRA Payments.
What if I have a GST / HST refund?
Yes if you have a GST or HST refund the CRA will process your refund and send to you a cheque by mail. Since the CRA is trying to eliminate cheques you can also call them at 1-800-959-5525 to set up direct deposit into your account. You may also log in to your business account if you have set this up and make the banking changes there. See this article on setting up a CRA My business account.
It is very important that you are careful with refunds from the cra. Make sure that you have put the proper percentages on your expenses as the cra will review your filings. Best to check in with us when doing this or have us do it for you so that we can make sure that we can reduce your chances of review and or audits. There are other margins the CRA goes by as well when it comes to being audited so do take advantage of our system so that you can protect yourself.
Accufile is here for you
Take advantage of our online Tax Specialist and file your Personal Taxes for $25, Business Taxes for $75, and Corporate Taxes for $200. If you are looking to learn how to register for a CRA Account check our article on CRA Login.