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Knowing the business tax deadlines in Canada is very important, and there are many different situations for you to take into consideration. With that being said, it’s imperative to know when to remit or pay the GST/HST. Here is all the information you should be aware of about this process.
When do you need to file and pay GST/HST in Canada?
1. What are the business tax deadlines for GST/HST?
Generally, the payment deadline will vary according to the HST and GST filing period. For the most part, these payments are due on the same day as the returns.
However, there are situations when the deadlines differ from the regular filing deadline. It can happen if:
- You are an annual filer, and that means you have to pay via instalments
- You are an annual filer with a fiscal year ending on December 31st, and you have business income taxes that you need to pay.
When that happens, you will need to remit the GST/GST for the invoice you have in your returns. You need to add even those that were not yet paid.
2. What happens if you file a personalized return?
When you file a personalized HST/GST return, you will notice that the due date is at the top.
Generally, if you have a due date either during the weekend or a public holiday, and that’s recognized by the CRA, then you will need to ensure that the payment is sent the next business day.
If you do so, then the payment will be seen as on time, so you don’t have to worry about any issues.
3. The four filling periods
- You can have a monthly payment deadline, if you have the reporting period until the end of July, then you have to file and pay by the end of August, on August 31st.
- In case you have the quarterly approach, and it starts at the beginning of the year, then that means the reporting period is at the end of March, so the deadline for your filing and payment will be April 30th.
- Annual filing periods that end on December 31st will have a filing deadline of June 15th, whereas the payment deadline is June 30th.
- If you have an annual filing period, but the deadline is not December 31, you have a deadline 3 months after the year-end. So if your custom year-end is in June, you must pay until the end of September.
Understanding the business tax deadlines is very important because it allows you to optimize how and when you pay taxes.
If you are a corporation, then you can choose the right HST/GST payment date that fits your business and how it works. What a lot of businesses do is file and make payments either quarterly or annually.
However, if you have a larger monthly revenue it makes sense to go for a monthly payment.
One thing to consider here is that when you are a sole proprietor, then your GST/HST payment deadlines will be the same as your income tax deadlines.
It’s a great idea to know the business tax deadlines because it makes it easier to know how much you need to pay and also when to file your taxes properly.
Thankfully, the process of filing and paying your business taxes is not overly complicated, so you will find it easy to handle. It all comes down to understanding the business tax deadlines and then making sure you complete the process in time.
It will help you prevent any possible late penalties, not to mention you will have a much easier time handling all your current payments!