HST and GST are consumption taxes collected by businesses on behalf of the CRA; input tax credits allow recovery of the HST/GST paid on business expenses, so only the net amount is remitted.

If a business earns more than $30,000 in revenue over four consecutive calendar quarters, GST/HST registration is mandatory. Once registered, tax is collected on taxable supplies and the difference between what is collected and what is paid on inputs is remitted. The input tax credit mechanism ensures tax does not compound through the supply chain.

The requirements are specific: HST/GST must be remitted on the schedule assigned by the CRA based on annual revenue, returns must be filed even in nil periods, and ITCs can only be claimed within prescribed time limits. For businesses making exempt or zero-rated supplies, including certain healthcare, financial, and educational services, the rules change materially and should be reviewed before assuming the general framework applies.

HST/GST is an ongoing obligation with consequences for getting it wrong. See how Wefinx approaches tax planning.

← Back to glossary