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File GST/HST Returns in Ontario: A Guide on Periodicity, Penalty on Non-Filing & Due Date

If you are a small business owner in Ontario, you may be wondering how to file your GST/HST returns and avoid penalties and interest. GST/HST is a value-added tax that applies to most goods and services sold or provided in Canada. As a GST/HST registrant, you are responsible for collecting and remitting the tax to the Canada Revenue Agency (CRA).

GST Return Filing due date, periodicity and penalty

In this blog post, we will explain the basics of GST/HST filing requirement in Ontario, including:


Due Date for Filing

The due date for filing your GST/HST return depends on your reporting period. A reporting period is the period of time covered by your GST/HST return. The CRA assigns you a reporting period based on your annual taxable revenue.

There are three types of reporting periods:

  • Monthly

  • Quarterly

  • Annual

If you have a monthly reporting period, you have to file your GST/HST return and remit any amount owing no later than one month after the end of your reporting period.
If you have a quarterly reporting period, you have to file your GST/HST return and remit any amount owing no later than one month after the end of your reporting period.
If you have an annual reporting period, you have to file your GST/HST return and remit any amount owing no later than three months after the end of your fiscal year.

If the due date falls on a Saturday, Sunday, or public holiday, your return and payment are considered on time if they are received or postmarked on the next business day.


Periodicity of Filing

The periodicity of filing refers to how often you have to file your GST/HST return. As mentioned above, the CRA assigns you a reporting period based on your annual taxable revenue.


Generally, if your annual taxable revenue exceeds $30,000, you must register for and collect GST/HST. However, if your revenue is below this threshold, registering for GST/HST is optional.


Taxable Sales

Periodicity of filing (options available)

$1.5 million or less

annually, quarterly, or monthly

more than $1.5 million to $6 million

Quarterly or Monthly

more than $6 million

Monthly


You can change your reporting period by contacting the CRA or using the My Business Account online service.


Penalty for Non-Filing

If you fail to file your GST/HST return on time, you may face a penalty for non-filing. The penalty is 1% of the amount owing, plus 0.25% of the amount owing for each full month that your return is late, up to a maximum of 12 months.


For example, if you owe $1,000 in GST/HST and you file your return three months late, your penalty would be:

  • $1,000 x 1% = $10

  • $1,000 x 0.25% x 3 = $7.50

  • Total penalty = $17.50

If you repeatedly file your GST/HST returns late, the CRA may apply a repeated failure to file penalty. This penalty is 2% of the amount owing, plus 0.5% of the amount owing for each full month that your return is late, up to a maximum of 20 months.


For example, if you owe $1,000 in GST/HST and you file your return six months late for the second time in a row, your penalty would be:

  • $1,000 x 2% = $20

  • $1,000 x 0.5% x 6 = $30

  • Total penalty = $50

Interest on Non-Payment

If you do not pay the GST/HST that you owe by the due date, you will also have to pay interest on the outstanding balance. The interest rate is determined quarterly by the CRA and is compounded daily. The current interest rate for the fourth quarter of 2023 is 5%.


For example, if you owe $1,000 in GST/HST and you pay it one month late, your interest would be:

  • $1,000 x 5% x (30/365) = $4.11

  • Total amount owing = $1,004.11

How Presyz Can Help You

Filing GST/HST returns can be a daunting and time-consuming task for small business owners. You have to keep track of your sales, expenses, and taxes, calculate your net tax, fill out the forms, and submit them to the CRA on time. If you make a mistake or miss a deadline, you may face penalties and interest.


That’s why we at Presyz, a professional GST filing service that can take care of your GST/HST returns for you. We are a team of experienced professionals who specialize in GST/HST compliance. We can help you with:


  • Registering for GST/HST

  • Choosing the best reporting period and accounting method for your business

  • Preparing and filing your GST/HST returns accurately and on time

  • Claiming input tax credits and rebates

  • Dealing with audits and appeals

  • Saving money on GST/HST

With Presyz, you don’t have to worry about GST/HST anymore. You can focus on growing your business and serving your customers. We offer affordable and flexible pricing plans that suit your needs and budget. You can choose to pay per return or subscribe to a monthly or annual plan.


To get started, simply book a call and sign up for a free consultation. We will assess your situation and provide you with a customized quote. You can then share your documents and information and let us handle the rest.


Don’t let GST/HST stress you out. Let Presyz take care of it for you. Contact us today and see how we can help you save time and money on your GST/HST returns.


Conclusion

Filing and paying your GST/HST on time is important to avoid penalties and interest charges. You should know your reporting period, your due date, and your filing method. You should also keep track of your GST/HST account balance and make payments as soon as possible. If you need help with your GST/HST filing, you can contact the CRA or a professional tax advisor.


I hope this draft helps you with your blog. Please note that this is not a substitute for professional tax advice, and you should verify the information before publishing it. Thank you for using Bing.

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