GST/HST compliance is one of the most routine yet consequential obligations for Canadian businesses. Whether you are a sole proprietor filing annually or a corporation remitting monthly, understanding how the return works — and what goes on each line — keeps your business in good standing with the Canada Revenue Agency. This guide walks through everything you need to know about GST/HST return filing in Canada for 2025.
Every business or individual registered for a GST/HST account must file a return for each reporting period — even if no GST or HST was collected during that period. There are no exceptions based on inactivity. If your account is open, your return is due.
Registration is mandatory once your worldwide taxable supplies exceed $30,000 in a single calendar quarter or over four consecutive quarters. At that threshold you become a registrant and must begin charging, collecting, and remitting GST/HST. Businesses below this threshold can register voluntarily to claim input tax credits on their purchases, which is often worthwhile even at early stages.
The CRA assigns a reporting period based on your annual taxable supplies, though you can often elect a shorter period if it suits your cash flow.
Businesses with under $1.5 million in annual taxable supplies are assigned an annual reporting period. The return and any balance owing are due three months after your fiscal year-end. For a December 31 year-end that means a March 31 deadline.
Businesses with between $1.5 million and $6 million in annual taxable supplies file quarterly. The return and remittance are due one month after the end of each quarter.
Businesses with over $6 million in annual taxable supplies must file monthly. Each return and payment is due one month after the reporting period ends.
Any registrant can voluntarily elect a shorter reporting period. Moving from annual to quarterly, for example, allows a business with predictable ITC claims to recover refunds faster rather than waiting until year-end. Newly registered businesses are typically placed on a quarterly schedule by default. If your taxable supplies grow substantially, the CRA will automatically reassign you to a more frequent period.
Electronic filing through the CRA's My Business Account portal is the preferred and most reliable method. You log in, navigate to your GST/HST account, and complete the return online. Most chartered accounting software packages — including QuickBooks, Sage, and Xero — are EFILE certified and can transmit returns directly to the CRA, which saves time and reduces manual entry errors.
Paper filing using Form GST34 remains available for businesses that prefer it. The completed form is mailed to the CRA processing centre; however, paper returns take longer to process and refunds are slower to arrive. TELEFILE by phone is still available for certain straightforward returns, though electronic methods are strongly encouraged by the CRA.
For quarterly and monthly filers, the filing deadline is one month after the reporting period ends. Annual filers have three months after their fiscal year-end. Missing these deadlines triggers penalties and interest, so calendar reminders or a standing arrangement with your accountant are worth the effort.
The GST/HST return has several key lines. Understanding what each one represents prevents costly errors.
Report the total value of all supplies made during the period, including taxable supplies (standard-rated and zero-rated) and exempt supplies. This is a gross revenue figure, not limited to amounts on which GST was charged. Zero-rated supplies such as most basic groceries, prescription drugs, and exports are included here even though GST/HST is charged at 0%.
Enter the total GST/HST you collected from customers during the period, plus any amounts that became collectible (i.e., invoiced but not yet paid, if you use the accrual method). This is the tax you held on behalf of the CRA.
Claim the GST/HST you paid on business-related purchases and expenses. This offsets what you owe. Accurate ITC tracking requires proper documentation for every claimed expense.
This is the bottom line: Line 103 minus Line 106. If the result is positive, you owe that amount to the CRA. If the result is negative, you are entitled to a refund. Refunds are typically processed within a few weeks for electronic filers.
ITCs are one of the most valuable features of the GST/HST system. Registrants can recover the GST/HST paid on virtually any expense incurred to earn taxable supplies — office rent, equipment, professional fees, vehicle costs, advertising, and more.
To support an ITC claim, you must hold a valid tax invoice that includes the supplier's GST/HST registration number, the date of the supply, a description of what was purchased, and the total amount including tax. For invoices over $150, additional details are required. Without proper documentation, the CRA can deny the claim on audit.
ITCs must be claimed within four years of the reporting period in which the expense was incurred. Claims beyond that window are disallowed. You cannot claim ITCs on personal use, exempt supplies, or purchases used to make exempt supplies such as residential rent.
Small businesses with under $400,000 in annual taxable supplies (including GST/HST) can elect the Quick Method of accounting. Instead of tracking and claiming individual ITCs, you remit a flat percentage of your GST/HST-included sales directly to the CRA.
For 2025, the Quick Method rates are:
There is also a 1% credit on the first $30,000 of eligible supplies. The Quick Method is administratively simpler because you no longer need to categorise every purchase for ITC purposes. However, it does not always result in a lower remittance — if your business has significant GST-taxable input costs, the actual method may produce a better outcome. A comparison before electing is worthwhile.
Annual filers whose net GST/HST owing in the prior fiscal year exceeded $3,000 must make quarterly instalment payments throughout the current year rather than waiting until the annual filing deadline. Instalments are due three months into each quarter of the fiscal year. Failure to make required instalment payments results in instalment interest charges even if the full balance is paid by the annual deadline.
Filing late or remitting late has real financial consequences. The CRA charges a penalty of 1% of the balance owing, plus an additional 0.25% for each complete month the return remains outstanding, up to a maximum of 12 months. On top of the penalty, prescribed interest accrues on unpaid amounts from the day after the due date. For businesses that are repeatedly late, the CRA can apply a more severe penalty structure. Filing on time — even if you cannot pay the full balance — avoids the late-filing penalty and keeps options open for payment arrangements.
At Swift Accounting Calgary, we handle GST/HST filings for businesses across industries — from tradespeople and consultants to retail operations and growing corporations. Whether you need help establishing the right reporting period, catching up on missed filings, or deciding whether the Quick Method makes sense for your business, our team provides practical, accurate guidance. We prepare and file returns electronically and flag ITC opportunities that many business owners overlook.
If you want accurate, on-time GST/HST returns filed without the stress, contact Swift Accounting today. We work with Calgary-area businesses of all sizes and can take GST/HST compliance off your plate entirely.
Yes. Every registrant must file a return for each reporting period regardless of activity. If you collected no GST/HST and made no taxable supplies, you still file a nil return. Failure to file triggers late-filing penalties and can result in the CRA filing a notional assessment on your behalf.
Most registrants have four years from the due date of the return for the reporting period in which the ITC first became available. For example, if you incurred an eligible expense in a quarterly period ending June 30, 2025, you generally have until the return due date for the period ending June 30, 2029 to claim it. Large corporations have a shorter two-year window.
Both zero-rated and exempt supplies are not subject to GST/HST in the hands of the customer, but they are treated differently for ITC purposes. Suppliers of zero-rated goods and services — such as most basic groceries, prescription drugs, and exported goods — can still claim ITCs on their related inputs. Suppliers of exempt supplies — such as residential rental income, most health-care services, and educational services — cannot claim ITCs on inputs used to make those exempt supplies.
Yes. You can elect a more frequent reporting period by logging into CRA My Business Account and updating your GST/HST account preferences, or by contacting the CRA directly. The change typically takes effect at the start of your next fiscal year or the next quarter, depending on timing. Switching to quarterly is common when a business expects regular refund positions, since it accelerates recovery of those credits rather than waiting for one annual reconciliation.
Our Calgary team handles personal tax, corporate returns, GST/HST, payroll, and bookkeeping.
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