TaxCube offers HST filing assistance to residents and non-residents of Canada.
If your business provides taxable goods or services in Canada and earns a revenue of more than $30,000, you must file HST returns. Harmonized Sales Tax (HST) is a provincial sales tax that is harmonized with GST.
Certain small businesses must register for HST regardless of their revenue. We're here to ensure you meet CRA guidelines for your industry and avoid penalties from missed or late filings.
Overview of GST and HST
The Goods and Services Tax (GST) is a federal value-added tax applied to most goods and services sold in Canada, with a current rate of 5%.
The Harmonized Sales Tax (HST) is a combined federal and provincial tax that merges the GST with the Provincial Sales Tax (PST) in participating provinces. HST rates differ by province, ranging from 13% to 15%.
Currently, five provinces—Newfoundland and Labrador, New Brunswick, Nova Scotia, Ontario, and Prince Edward Island—have adopted the HST. In these areas, businesses collect HST instead of separately charging GST and PST. In provinces not participating in the HST, businesses charge GST and, where applicable, the provincial PST.
*Ontario continues to impose a retail sales tax (RST) on insurance and private sales of used motor vehicles. For more details, please refer to the link on Ontario Retail Sales Tax.
File Your HST Returns On Time
HST filing deadlines vary depending on the type of business and the options selected. Different filing methods are available based on what benefits you the most. Our Toronto tax advisor possesses the skills and expertise to help you maximize HST savings.
Not all goods are subject to HST in every province. Some businesses don’t charge HST on goods like milk and bread—these zero-rated items should be excluded from your charges. HST might also not apply to certain services like child care, medical, or educational costs.
Consult a TaxCube to identify zero-rated, exempt, and taxable items to maximize your HST savings.
Filing HST Returns
When a business collects HST from customers, it must remit the tax to the federal government by filing an HST return with the CRA. Registration for HST is required once you start collecting this tax. The CRA assigns a reporting period based on your annual taxable supplies. Most businesses report quarterly, but those with over $6 million in annual taxable supplies must report monthly. However, you can choose quarterly, semi-annual, or monthly filings, depending on what suits your small business best.
You must remit your HST returns on the assigned reporting period even if the amount is zero. If expecting refunds, you can extend the remittance period. We streamline this by filing your HST returns electronically and identifying eligible input tax credits to maximize your tax savings. Facing any challenges with filing HST returns?
HST is a consumption tax paid by consumers at the point of sale. Vendors collect this tax and remit the total amount, minus the HST paid on business expenses, to the CRA.
HST is collected by businesses on sales and remitted to the CRA, minus the HST paid on expenses. Businesses file HST returns monthly, quarterly, or yearly. HST is a tax on the final consumer and is a liability for businesses, not income or expense. Business income and expenses are reported net of HST, meaning any HST paid by the business is recoverable.
An HST Number is a 9-digit identifier, identical to a Federal Business Number (BN) assigned by the Canada Revenue Agency to businesses such as corporations, sole proprietorships, or partnerships. It ends with RT0001 (e.g., 123456789 RT0001) and must be included on all invoices.
While it might seem like all small businesses should get a GST/HST number immediately, it depends on the business. If your revenue exceeds $30,000, you must register for a GST/HST number.
Failing to register means you are still obligated to remit 13% of your sales to the CRA, even if you haven’t collected HST from customers. This results in losing 13% of your sales to HST.
There are three levels of filing frequency depending on the amount of your taxable sales.
| Annual Taxable Sales | Filing Frequency |
| $1,500,000 or less | Annual (quarterly or monthly are optional) |
| $1,500,001 – $6,000,000 | Quarterly (monthly is optional) |
| Over $6,000,000 | Monthly |
To apply the correct GST/HST rate, you must first identify the type of goods or servicesbeing offered and their place of supply.
Some items, such as groceries and agricultural or fishery supplies, are zero-rated, meaning no GST/HST is applied in Canada. Other items, like long-term residential rentals and most health, medical, dental, child care, and educational services, are exempt. For these exempt services, you may be eligible to claim input tax credits for any GST/HST paid. Additionally, certain organizations, such as charities and municipalities, may be exempt from charging GST/HST. Most other goods and services are subject to taxation.
For further details on the GST/HST classification of different goods and services, please visit the Government of Canada’s website.GST/HST and place-of-supply rules - Canada.ca
Provincial Websites
GST/HST and PST rates
| Province | GST and HST | PST |
| Alberta | 5% | 0% |
| British Columbia | 5% | 7% |
| Manitoba | 5% | 7% |
| New Brunswick | 15% | N/A |
| Newfoundland and Labrador | 15% | N/A |
| Northwest Territories | 5% | 0% |
| Nova Scotia | 15% | N/A |
| Nunavut | 5% | 0% |
| Ontario | 13% | N/A |
| Quebec | 5% | 9.98% |
| Prince Edward Island | 15% | N/A |
| Saskatchewan | 5% | 6% |
| Yukon | 5% | 0% |
- You must register with these provinces, collect the PST, and submit PST returns.
- If you are a non-resident of Quebec without a physical presence or employees in the province, you are exempt from registering for and filing QST.
- In Saskatchewan, registering and remitting PST is optional; however, if you decide not to register, the customer will be responsible for paying the PST.
