Harmonized Sales Tax (HST) Filings
Our Ontario tax accountants have extensive tax knowledge in various sectors and have assisted hundreds of businesses in filing their tax returns. We will help you navigate the tricky waters of HST filings to keep your business compliant with Ontario regulations and guidelines.
Top HST Filing Service
Harmonized Sales Tax (HST) is Ontario’s provincial sales tax that “harmonizes” with the countrywide Goods and Sales Tax (GST). This tax affects businesses that provide taxable goods or services and generate more than $30,000 in annual revenue. Certain smaller companies that generate under $30,000 in revenue but are in particular industries must also file HST.
The process of filing your company’s HST can be intimidating and an additional stressor during the tax filing season. Instead of poring over CRA guidelines for your industry, why not let Hart Accounting Services help you file all your relevant taxes this year?
Our Ontario tax accountants have extensive tax knowledge in various sectors and have assisted hundreds of businesses in filing their tax returns. We will help you navigate the tricky waters of HST filings to keep your business compliant with Ontario regulations and guidelines.
Meet Your HST Filing Deadline
To further complicate HST filings, different types of businesses have specified filing deadlines, and missing them can result in severe penalties. Several other filing options also exist, each with its strengths and weaknesses, depending on your particular situation.
Many new businesses make the mistake of waiting until the last second to file their HST returns, which often become more complicated than initially expected. HST filings contain exceptions based on the province, as well as zero-rated products and services.
Figuring out which items are zero-rated, exempted, and taxable is a time-consuming and laborious job, especially the first time you file. Don’t wait until the last second. Be sure to get in touch with an experienced Ontario-based accounting firm like Hart Accounting Services well before your deadline.
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Choosing or switching accountants is a big step for any business, so let’s talk about what’s right for your situation.
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Filing Your HST Returns
If your business collects HST from customers, you will need to remit this tax to the federal government via the HST filing. Ideally, you should register for HST before you start collecting this tax, which allows the CRA to assign a reporting period to your business.
Typically, the reporting period is quarterly, but some larger businesses will need to report every month. However, you can choose to file your HST return monthly, quarterly or semi-annually, depending on your business needs.
The first HST filing is typically the most intimidating since it requires figuring out which expenses qualify for input tax credits and which items or services you need to file as HST in the first place. You also need to remit every reporting period, even if the remittance for that period is zero.
HST filings can make up a large portion of your corporate tax return, and it’s generally a good idea to enlist the services of a qualified accountant. At Hart Accounting Services, we’ll help you throughout the process and ensure that you meet all your deadlines and submit the correct information.
With so many things that can go wrong during your HST filing, is it really worth it to try to do it alone?
Foreign Tax Credits
If you have a company that operates across Canadian borders, your HST filing will impact your foreign tax credits. These credits ensure that you will be able to claim back any taxes paid in Canada from your other country’s tax return.
To claim foreign tax credits for business in the U.S., you’ll have to complete and submit a 1040 form yearly, and depending on your business and individual situation, you may be subject to additional tax reporting.
As part of our HST filing service, we can also help you get the federal tax credits to which you’re entitled and submit your tax reporting to the relevant departments correctly.
Call Us Today, Risk Free
Choosing or switching accountants is a big step for any business, so let’s talk about what’s right for your situation.
Frequently Asked Questions
Here are some questions business owners frequently ask when they consider hiring tax service professionals.
What is the Canadian HST rate?
There are only two provinces in Canada with an HST rate. In Quebec, the HST rate is 14.975%, and in Ontario, it’s 13%.
Does HST include GST?
Yes. The HST combines the two value-added taxes found in Canada, the GST and PST. This single tax greatly simplifies filing since you don’t have to file for both.
What is an HST number, and do I need one?
The Canadian Revenue Agency assigns every business selling certain goods with an HST number. This number is similar to a Federal Business number, except that it ends in RT0001. You have to include your HST number on all invoices that you submit to customers who pay HST on your goods or services.
If your business generates more than $30,000 in annual revenue, you have to register for an HST number. Failure to do so will result in the need to pay the CRA 13% on your sales—without collecting that 13% from your customers.
What items are exempt from HST?
There are plenty of zero-rated and exempt items from HST, both in Canada and in Ontario, in particular. Common examples include basic groceries such as fish, meat, poultry, eggs, vegetables, and non-alcoholic beverages such as tea and coffee.
Whether you’re planning on starting a new business or are an experienced business owner, it’s always a good idea to have a reliable, experienced accountant by your side. If you’re feeling overwhelmed by your taxes or HST filings, be sure to get in touch with us at Hart Accounting Services today!
