Sales Tax – GST/HST/QST 

What Is Sales Tax Filing?

Sales taxes in Canada include GST (Goods and Services Tax), HST (Harmonized Sales Tax), and QST (Québec Sales Tax). Businesses that supply taxable goods or services may be required to register, collect, report, and remit these taxes to the government. Sales tax compliance is administered by the Canada Revenue Agency for GST/HST and Revenu Québec for QST.

Proper sales tax filing ensures compliance with Canadian tax laws and helps avoid penalties, interest, and audits.

Who Needs to Register for Sales Tax?

You may be required to register for GST/HST and/or QST if your business meets Canadian sales tax registration rules. Registration is not automatic for all businesses and depends on your revenue, activity, and province.

You may need to register if you are:

• Self-employed or operating a sole proprietorship and your taxable revenues exceed $30,000 in a 12-month period

• An incorporated business supplying taxable goods or services

• A freelancer, consultant, contractor, or service provider once registration thresholds are met

• An online seller or e-commerce business after exceeding the small supplier limit

• Voluntarily registering to claim Input Tax Credits (ITCs), even if under the threshold

Until you are registered, you do not collect or remit GST/HST/QST, but once registered, compliance becomes mandatory.

When Does Sales Tax Filing Apply?

Sales tax filing applies only after you have been issued a GST/HST and/or QST registration number. Once registered, you are required to:

• Charge the appropriate sales tax

• File returns based on your assigned reporting period

• Remit collected taxes on time

• Maintain proper records

Failure to comply after registration may result in penalties and interest imposed by the Canada Revenue Agency or Revenu Québec.

What Is Reported on a Sales Tax Return?

A sales tax return reports your business’s taxable activity for the reporting period, including:

• Total taxable sales

• GST, HST, or QST collected

• Input Tax Credits (ITCs) or Input Tax Refunds (ITRs) claimed

• Net tax payable or refundable

• Adjustments, credits, or prior-period corrections

All amounts must be reported accurately as required by tax authorities.

Sales Tax Filing Frequencies

Sales tax returns may be required on one of the following schedules, depending on your revenue and registration:

• Monthly

• Quarterly

• Annually

Filing frequency is assigned by the CRA or Revenu Québec and must be followed strictly to avoid penalties.

Deductions & Credits You Can Claim (Sales Tax)

Proper sales tax filing allows eligible businesses to reduce tax payable by claiming credits on business expenses.

Common Sales Tax Credits

• Input Tax Credits (ITCs) for GST/HST paid on business expenses

• Input Tax Refunds (ITRs) for QST paid on eligible expenses

• Adjustments for returned or cancelled sales

• Bad debt adjustments (where applicable)

Only expenses related to commercial business activity and supported by proper documentation are eligible.

Contact us today to get started.👇