Filing your HST return in Ontario can be tiring, but it doesn’t have to be. Understanding the process is key to staying compliant with the Canada Revenue Agency (CRA) and avoiding penalties.
This blog will walk you through how to file HST using various methods, what to do if you owe taxes, and when your HST return due date is.
Quick overview of the online vs offline process of the HST return filing process:
| Online Filing | Offline Filing | |
|---|---|---|
| How to file an HST return | Use NETFILE or My Business Account through the CRA website | Mail paper forms or use TELEFILE (phone) |
| Access code needed | Yes, required for NETFILE and third-party software | Yes, it is required for TELEFILE and paper filing |
What Is HST and Who Needs to File in Ontario
The Harmonized Sales Tax (HST) is a value-added tax applied to goods and services in Ontario. Businesses with annual taxable revenues exceeding $30,000 must register for the GST/HST program and charge HST on the goods and services they sell.
You’ll then need to file regular HST returns to report and remit the tax collected.
How Often Do You Need to File HST in Ontario?
Before you file your GST/HST return, it’s important to know when and how often you need to do so. HST reporting periods vary based on your business’s revenue. Businesses are generally assigned monthly, quarterly, or annual reporting periods depending on their taxable revenue in the previous fiscal year.
If your business made more than $30,000 in taxable revenue, you’ll be required to file on a monthly or quarterly basis. If your revenue is below this threshold, you may qualify to file annually.
It’s important to know which reporting period applies to your business to avoid missing your HST return due date and potentially facing penalties.
What is the HST Return Due Date in Ontario?
The HST return due date depends on your reporting period:
- Monthly filers: Your return is due on the 20th of the following month.
- Quarterly filers: Your return is due on the 20th of the month following the end of each quarter.
- Annual filers: Your return is due on June 15th of the following year, but any amount owing is due by April 30th.
It’s important to note that late filing penalties apply if you miss your HST return deadline. To avoid these penalties, ensure you file on time.
How to File HST Return in Ontario (All CRA Methods)
There are several methods available for filing your GST/HST return. Here’s a breakdown of your options:
1. File Through CRA My Business Account
If you have a CRA My Business Account, you can file your HST return directly through the NETFILE service. This is a simple and quick method, and it allows you to track your return status and manage payments.
To file through My Business Account, follow these steps:
1. Sign in to your CRA My Business Account here.
2. Navigate to the “File GST/HST Return” section.
3. Enter your Business Number (BN), reporting period dates, and the rest of your required information.
4. Follow the prompts to enter your sales, input tax credits (ITCs), and other details.
Review your information and submit your return.
2. File Using the CRA NETFILE GST/HST Form
If you don’t have a CRA My Business Account, you can use the NETFILE – GST/HST form to file your return online. This method requires you to have a 4-digit GST/HST access code, which can be found on previous returns or registration documentation.
To file using the NETFILE form, follow these steps:
1. Go to the NETFILE GST/HST form page here.
2. Enter your GST/HST access code and Business Number.
3. Select the reporting period and other required information.
4. If applicable, check the box for a nil return if you have no taxes to report for the period.
5. Review your information and submit your return.
Once submitted, you’ll receive a 6-digit confirmation number, which confirms that your return has been filed.
3. File Through Your Bank (If Eligible)
Some Canadian financial institutions offer a way to file GST/HST returns through Electronic Data Interchange (EDI). This allows you to file your return and make payments directly from your bank account.
However, not all financial institutions provide this service, so it’s important to check with your bank first. If available, this method may offer added convenience for businesses that already handle their finances through online banking.
4. File HST with Accounting Software (e.g., QuickBooks, Xero)
If you’re already using third-party accounting software to manage your business finances, you can also file your GST/HST return directly through the CRA’s Internet File Transfer system. This method requires a GST/HST access code.
To file using third-party software:
1. Ensure your accounting software is compatible with the CRA’s Internet File Transfer system.
2. Prepare your GST/HST return within the software.
3. Upload your completed return directly to the CRA via the software.
This method is especially useful for businesses that have complex accounting needs or that need to submit multiple returns.
5. File HST by Phone Using TELEFILE
If you’re unable to file online or via other methods, you can file your GST/HST return by phone using the TELEFILE service. This method is available for businesses with smaller tax obligations, and it requires a GST/HST access code.
To file via phone:
1. Call the TELEFILE service number provided by the CRA.
2. Follow the instructions to enter your business information.
3. Confirm the information and submit your return.
6. File HST by Mail (Paper Return)
While electronic filing is encouraged, you can still file your HST return by mailing a paper form to the CRA. You will need to send the correct paper form (e.g., Form GST34-2, Form GST62, or Form RC7200) to the address specified by the CRA.
However, be mindful that filing by mail can lead to delays and potential penalties if your return is late. Unless absolutely necessary, filing electronically is the preferred method.
How to Pay Your HST to CRA After Filing
Once your HST return is filed, you may need to make a payment to the CRA. There are several HST payment methods available:
- Online: You can pay via My Business Account or through online banking services.
- Bank: Visit your bank to pay in person through a pre-authorized payment or bill payment option.
- Mail: You can mail a cheque along with your return.
- Phone: Some financial institutions allow payments by phone.
Make sure to pay your HST on time to avoid interest and penalties.
What If You Need to Amend Your HST Return?
If you realize that you’ve made an error on your HST return, you can amend your return by filing a correction with the CRA. This can be done online through My Business Account or by mailing an amended return.
Be sure to keep track of any changes in your input tax credits (ITCs), sales, or other reportable amounts.
What If You Have a Nil Return?
If your business had no taxable sales or GST/HST to report during a given period, you can file a nil return. Filing a nil return is still important because it keeps your account up to date with the CRA and prevents penalties for failing to file.
Final Thoughts on Filing Your HST Return
Filing your GST/HST return doesn’t have to be overwhelming. By choosing the right filing method for your business and staying on top of important deadlines, you can ensure that your return is filed accurately and on time.
If you’re still unsure about the process or need help with specific forms or software, Bestax can provide you with the right support. With years of experience, the professional accountants at Bestax can handle your GST/HST returns. Their tax services ensure accuracy in your returns, minimizing the risk of errors that could lead to penalties.
Quick FAQs
How do I file my HST return online in Ontario?
To file your HST return online in Ontario, you can use NETFILE or My Business Account through the Canada Revenue Agency (CRA) website, where you can submit your return and make payments.
What are the deadlines for filing and paying HST in Ontario?
The HST return deadlines in Ontario are based on your reporting period, with monthly and quarterly filers due on the 20th of the following month, and annual filers due by June 15th, with payment by April 30th.
What’s the difference between NETFILE, My Business Account, and TELEFILE?
NETFILE is an online form for direct submission without a CRA account, My Business Account is a portal where you can file and manage your returns, and TELEFILE is a phone service for small businesses to file by phone.
How do I choose between the regular method, the quick method, or simplified method?
The regular method allows full tracking of input tax credits (ITCs), while the quick method simplifies calculations for smaller businesses, and the simplified method is available for certain types of businesses, like non-resident sellers.
What if I don’t file my HST return on time? What are the penalties?
If you don’t file your HST return on time, you may face penalties, including a percentage of the taxes owed and interest on overdue amounts.
Can I amend or correct a filed HST return?
Yes, you can amend or correct a filed HST return by submitting an amended return with the CRA to adjust any errors or missed information.
Do I need an access code to file my HST return digitally?
Yes, you need a GST/HST access code to file digitally using NETFILE, third-party software, or TELEFILE.
What counts as input tax credits on an HST return?
Input tax credits (ITCs) are credits you can claim on eligible business expenses, such as purchases or services used to produce taxable supplies.
How do HST filing requirements change based on revenue ($30K, $1.5M, etc.)?
HST filing requirements change based on revenue, with businesses making over $30K annually required to register and file, while higher revenue businesses may have different filing frequencies and obligations.
Should I file HST returns monthly, quarterly, or annually?
You should file HST returns monthly, quarterly, or annually based on your business revenue, with higher revenue businesses typically required to file more frequently.
Disclaimer: The information provided in this blog is for general informational purposes only. It is not legal advice and should not be relied on as such.
