You Can Change Your HST filing Frequency. Canada 150 Recommendation #81

Monday’s= Small Business

There are three filing frequencies for HST returns. The choices are annually, quarterly or monthly. The rules are that if your annual sales are less than $500,000 you can file annually, quarterly or monthly. If your annual sales are more than $500,000 but less than $6,000,000 you can file quarterly or monthly. If your annual sales are over $6,000,000 then you must file monthly.

However, and there is always a however with CRA, you can change your filing frequency once a year.

If you are mostly making zero rated sales, like a farmer or a fisher, or someone who exports, then you want to file each month because you are getting money back and you might as well get the money back each month.

If you are a new business owner you might be spending more money than you are bringing in and you would also like to file monthly. Once you are past the first year and your cash flow is better you might want to go to quarterly.

Some business owners like the monthly reporting because it helps them follow the same routine each month and they don’t build up a big bill with CRA.

Make a decision about the best filing frequency for your business and know that you can change it each year.

No comments yet.

Leave a Reply

Painless Financial Training Group Inc. with Debi Peverill

Understand Financial Stuff, Painlessly