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Goods and Services Tax

Preparing the GST Return

Summary
The Regular Method
The Quick Method
Blank GST Form (PDF)
Frequently Asked Questions

Summary
Companies must charge GST on most products and services sold in Canada. The rate is 5% (The rate was 6% from July 1, 2006 to December 31, 2007 and 7% prior to July 1, 2006). Returns are normally filed quarterly. The return is due 30 days after the quarter end date. QuickBooks users can obtain additional information here.

The Regular Method
The GST form requires three numbers from your accounting records:

1. Line 101—sales for the quarter, excluding GST—based on invoices prepared, even if not paid.
2. Line 105—GST charged to customers—based on invoices prepared, even if not paid.
3. Line 108—GST paid on expenses and capital purchases (computers, equipment, furniture etc.).

The Quick Method
This method is for businesses with annual sales less than $200,000. You must contact CRA if you wish to use this method. QuickBooks users can obtain additional information here.

The GST form requires three numbers from your accounting records:

1. Line 101—sales for the quarter, including GST—include only invoices where GST was charged.
2. Line 105—the total on line 101 multiplied by 3.6% (the rate was 4.3% from July 1, 2006 to December 31, 2007 and 5% prior to July 1, 2006). If your annual sales exceed $30,000, you can reduce this amount by $300 once per year.
3. Line 108—GST paid on capital purchases (computers, equipment, furniture etc.).

Both Methods
Line 109—the difference between line 105 and 108. If the amount is negative, write a - sign in the box beside line 109.

4. Line 114—If line 109 is negative (i.e. refund), enter it again here. Returns with NIL balances or refunds can be Netfiled (http://www.cra-arc.gc.ca/eservices/tax/business/gsthst-netfile/file-e.html) if there is an access code printed on your return.
5. Line 115—If line 109 is positive, enter it again here. Prepare a cheque payable to the Receiver General. Many banks allow you to complete the return online and to make an electronic payment.

Returns can be mailed to:
CRA Tax Centre
PO Box 6000 Stn Main
Shawinigan-Sud QC
G9N 7W2

Frequently Asked Questions

Q. I am using the regular method and forgot to claim the GST on an expense, what do I do?

A. Just add the amount to line 107 of your next GST return. You have up to four years to claim input tax credits.