The CRA expects you to remit the GST/HST you collect on sales. You must first deduct the ITCs you receive on your GST/HST. We’ll take a look at different ways to pay GST/HST if the results of your filing is a balance owing.
4 Ways to Pay GST/HST If You Have a Balance Owing
The CRA has an electronic payment service that allows small businesses to pay their tax balances. This service allows business owners to transfer funds directly from their online account via Interac Online. Just visit CRA website and look for “My Payment” electronic payment service.
Regular Banking Service
You can also pay your GST/HST using a financial institution’s internet or telephone banking services. Most banks and credit unions allow their customers to make GST/HST payments using their services.
Pre-authorized Debt Payment
The CRA allows you to set up online accounts for your business. Using the “My Business Account” service, you can authorize the CRA to debit the HST/GST payment on a specific date.
You can visit any financial institution which allows you to pay your HST/GST using the form RC158 or the GST/HST Netfile/Telefile Remittance Voucher.
Payment via Mail
When you receive a personalized GST return, you can mail the GST Return’s remittance voucher together with a cheque or money order. Just ensure you write your business number on the back of the cheque or money order.
Any GST/HST payments that are above $50,000 must be made electronically or through a financial institution.
Must You File GST/HST Returns Electronically?
A new rule was passed by the CRA to ensure certain kinds of businesses must file their GST/HST electronically. For instance, if your business has more than $1.5 million in taxable supplies, you must file your returns electronically. Other businesses include those registrants in Ontario and British Columbia who are required to recapture their ITCs for certain inputs in their province.
Options for Electronic GST/HST Filing
All GST/HST applicants can take advantage of the different methods of filing electronically offered by the CRA (except for registrants in Quebec):
- You can file using GST Netfile which simply allows you to complete your GST/HST return online and send it to the CRA. In order to use the GST Netfile, you will need a code sent by the CRA.
- Another option would be to file using GST/HST Telefile which allows you to pay via mail, through a bank/credit union or electronically. You simply call 1-800-959-2038 and follow the instructions to file your return.
- You can register with a provider to file your GST/HST return via electronic data exchange (EDI). You will be required to supply the information about the return as well as payment via computer or phone and then it’s converted to the required format before being sent to the CRA.
- You can also use a third-party accounting software to file GST/HST returns directly to the CRA. You can then make payment to the CRA via mail, through the bank or an electronic service.
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.