Harmonized Sales Tax (HST) is a consumption tax that is paid by the consumer and the business at their point of sale. The vendor is usually the responsible person for collecting HST from their customers and then remit it to the CRA. The rates for HST vary with provinces and territories in Canada. Some of the provinces have their own provincial taxes, known as PST, while others have HST.
When we talk about the traditional payment methods of tax to the CRA, it is important to realize the importance of a professional accountant/bookkeeper. But since almost all the payments can now be made electronically or online, you can also count HST in this list. Here is a step-by-step guide to paying your HST in Canada while you don’t have to go anywhere.
Pay Your Individual Taxes Online
Method#1: Using your Financial Institution’s online Banking Service
When you are done with the bookkeeping and tax accounting of your business and you are ready to pay it, you can proceed to pay it online. For online payment of your individual personal or business tax, you will need to:
- Sign in to your financial institution’s e-banking services that are destined for individuals.
- Once signed in, you need to look for the “Add a Payee” option.
Then under this option, you can select one of the following categories:
CRA (revenue) – current-year tax return
This category can be used only once per return, and it is used for the payment of your current tax return.
CRA (revenue) – tax amount owing
As its name suggests, you can use this category to pay the tax amount owing.
CRA (revenue) – tax installment
If you are planning to make any payments for your future tax year, you can choose this category.
CRA (revenue) – Canada emergency benefit repayment
If you are repaying for a Canada emergency response benefit such as Canada emergency student benefit, or Canada recovery sickness benefit, you can proceed with this category.
- In the end, you will also need to provide your 9-digit social insurance number. Your social insurance number is also your CRA account number and needs to be input with great care.
Method#2: CRA’s My Payment Option
The electronic remittance of your HST can also be done by using the CRA’s My Payment option. This option allows you to make the online payment if you have an account at any supporting/participating financial institution. You can do this directly through the CRA’s website.
Method#3: Future Payments from your Bank Account
You can authorize the CRA to withdraw the amount of tax directly from your bank accounts on a specific date. This is called a pre-determined payment that you can choose when there are regular transactions from your bank account.
Supporting Financial Institutions
Here is a list of all the financial institutions that help you make these payments online. The list includes financial institutions that also provide non-resident payment options.
- ATB Online
- Alberta Credit Unions
- Atlantic Canada Credit Unions
- Canadian Western Bank
- EQ Bank
- KEB Canada
- Laurentian Bank
- National Bank
- President’s Choice
- RBC Royal Bank
- TD Canada Trust
No matter which method you select for the HST submission, make sure you have prepared your books well. If, at any point, you think you will not be able to make the proper calculations, use professional assistance for filing your HST returns.
Sohail Afzal, CPA, CMA, MBA
Sohail Afzal, (CPA, CMA, MBA) is the founder & CEO of GTA Accounting Professional Corporation. He is a highly experienced Chartered Professional Accountant and businessman himself and understands the challenges that many businesses face when it comes to cash flow management. As an experienced business consultant & tax advisor, he is helping companies grow by providing the technical, financial, and contractual information necessary for strategic decision-making.