GST Filing Requirements are based on a threshold amount of the company’s annual total revenue and sales from their taxable goods. Taxable goods are those subject to GST in the province whereas zero-rated goods such as basic groceries and health related products are not subject to tax and the business does not collect any tax on it.
The table below illustrates the required and optional reporting periods for GST Tax Returns:
|Annual Revenue from Taxable Goods||Required Reporting Period||Optional Reporting Period|
|$1,500,000 or less||Annual||Monthly, Quarterly|
|More than $1,500,000 up to $6,000,000||Quarterly||Monthly|
|More than $6,000,000||Monthly||–|
Most business will elect to file their GST quarterly with smaller businesses filing annually and large business with high annual revenue from taxable goods being required to file monthly.
The required reporting period for a company can change if their revenue from taxable goods increases or decreases and moves into another reporting threshold. For example, if a company was filling GST annually since their annual revenue from taxable goods were $1,000,000 but then in the following year reported $1,600,000 of annual taxable goods amount, they would then be required to file quarterly or could opt for a monthly filing period. This does not work the other way though, so if this company was then to file $1,200,000 in the subsequent year, they would still be a quarterly filer as this is an acceptable reporting period for an Annual Taxable Goods amount of $1,500,000 or less. If the filing period is acceptable in that threshold the company does not automatically switch the required reporting period.
Instead, the company can file Form GST20 Election for GST/HST Reporting Period to change the reporting period of their GST/HST return (to decrease or increase their reporting periods) if they are eligible to do so.
Even if there was no tax collected or the company had no business transactions a GST return must still be reported at the required or stated due date (annually, quarterly, monthly).
Some companies may also be required to file a PST return and must pay the government any provincial taxes you spent on purchases and paying back the tax charged on any sales in the business. A Provincial Sale Tax is usually applied to goods or services that are purchases or brought in a province for use within that specific province. Some small businesses are exempt for filling a PST Tax Return if the gross business revenue was less than $10,000 for the prior 12 months. A PST Tax Return is required to be filed even if no PST was earned or paid by the business. The deadline for the PST tax return is the last day of the month after the ending reporting period.
The table below illustrates the reporting periods for PST Tax Returns:
|PST Collectable per Year||Reporting Period|
|$3,000 or less||Quarterly, Semi-Annual, or Annual|
|More than $3,000 up to $6,000||Quarterly or Semi-Annual|
|More than $6,000 up to $12,000||Monthly or Quarterly|
|More than $12,000||Monthly only|