How does GST / HST work?
- If your sales / services for the taxable year exceed $30,000, you are requred to register and start charging GST / HST.
- Presently HST rate in Ontario = 13%
- If you register for HST and sell zero rated goods, you can get a refund of HST you paid on qualified purchases.
- Input tax credits on Supplies and Services that are not used in your business can only be claimed from the date of registration.
- If GST / HST tracking is a hassel, you can file your return using quick method of HST filing.
- Followinng is an easy working of quick method of filing:
Total sales Line 101 = x x x x
Total GST / HST adjustments line 105 = x x x x
Total ITC and adjustment at 1% of 30,000 = X X X X
Amount owing = Line 105 minus Line 108
7. Following businesses do not qualify for quick mehtod of filing GST / HST return.
Accounting Firms
Auditing Services
Financial Advisors
Lawyers
Insurance Companies
Notary Public
Tax Services
8. You can usually claim your input tax credit with in four years.
9. To claim GST / HST credit, your purchase invoice must show GST / HST amount you paid
10. You can check on CRA website if your supplier is registered for GST / HST
11. When you add a new supplier, ask him to provide you a copy of GST registeration.
12. You can claim input tax credits on assets that you are using in your business even if these assets were bought before your registration of GST. Usually you have four years from the time of filing first GST return to claim input tax credits.
13. If you use personal assets in business for more than 50%, you can claim 100% input tax credits. If you use your personal vehicle more than 90% in business, you can claim 100% input tax credits.
14. If your GST/HST owing is $3,000 or more, you are automatically under the thresh hold of making interim payments.