HST
Preparing the HST Return
Summary
The Regular Method
The Quick Method
HST Rates
Frequently Asked Questions
Blank HST Form (PDF)
Returns can be mailed to:
CRA Tax Centre
PO Box 6000 Stn Main
Shawinigan-Sud QC
G9N 7W2
Summary
Companies must charge HST on most products and services sold in Canada. The current rate for Ontario is usually 13% (see below for all HST rates). Returns are normally filed quarterly. The return is due 30 days after the quarter end date.
The Regular Method
Complete the HST form as follows: QuickBooks users can obtain additional information here.
- Line 101 - sales for the quarter, excluding HST —based on invoices prepared, even if not paid
- Line 105 - HST charged to customers—based on invoices prepared, even if not paid
- Line 108 - HST paid on expenses and capital purchases (computers, equipment, furniture)
- Line 109 - Line 105 minus line 108. If the amount is negative, write a - sign in the box beside line 109
- Line 114—If line 109 is negative (i.e. refund), enter it again here. Returns can be Netfiled (http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/gsthst-tpstch-ntfl/fl-eng.html) if there is an access code printed on your return.
- Line 115—If line 109 is positive, enter it again here. Prepare a cheque payable to the Receiver General OR complete the return online using your bank's government filing system and make an electronic payment.
The Quick Method
This method is for businesses with annual sales less than $200,000. You must register with CRA if you wish to use this method. QuickBooks users can obtain additional information here.
Complete the HST form as follows::
- Line 101 - sales for the quarter, including HST—include only invoices where GST/HST was charged
- Line 103 - HST charged to customers—based on invoices prepared, even if not paid
- Line 104 - Ontario companies that charged HST @ 13% on all invoices will multiply the total on line 103 by 24%. When your annual sales exceed $30,000, add an additional $300 once per year [Ontario companies that charged only 5% GST (eg. sale to Quebec) can keep 62% of the GST charged to those customers. Ontario companies that charged 15% HST can keep 20% of the HST charged]
- Line 105 - Line 103 minus line 104
- Line 108 - HST paid on capital purchases (computers, equipment, furniture)
- Line 109 - Line 105 minus line 108. If the amount is negative, write a - sign in the box beside line 109
- Line 114—If line 109 is negative (i.e. refund), enter it again here. Returns can be Netfiled (http://www.cra-arc.gc.ca/esrvc-srvce/tx/bsnss/gsthst-tpstch-ntfl/fl-eng.html) if there is an access code printed on your return.
- Line 115—If line 109 is positive, enter it again here. Prepare a cheque payable to the Receiver General OR complete the return online using your bank's government filing system and make an electronic payment.
HST Rates (Effective July 1, 2010)
Sales
The tax that you charge will normally depends on where your customer is located.
For retail operations, the customer is located where the store is located.
[The detailed rules can be found below under additional information - CRA place of supply rules].
If your customer is located in a HST province (see below), you will charge the HST rate applicable to that province.
If your customer is located in a non-HST province (including Quebec), you will only charge GST (5%).
If your customer is located outside of Canada, you will not charge GST or HST.
Quebec companies: If your customer is located in Quebec, you will continue to charge GST & TVQ.
HST provinces & rates:
Ontario (13%)
New Brunswick (13%)
Nova Scotia (15%)
Newfoundland (13%)
British Columbia (12%)
The Ontario Government and its agencies did not pay GST. However they must be charged HST (13%) starting July 1, 2010.
CRA Place of Supply Rules:
http://www.cra-arc.gc.ca/E/pub/gm/b-103/b-103-e.pdf
Purchases
Ontario companies who paid GST @ 5% on their purchases will now pay HST @ 13%.
Ontario PST will continue to be charged on insurance. This PST is NOT recoverable.
Quebec companies:
You will continue to pay GST & TVQ if your supplier is located in Quebec, and you will pay GST only if your supplier is located outside of Quebec.
Quick Method Remittance rates
ON to ON - 8.8%
ON to QC - 1.8%
ON to NS - 10.4%
QC to QC - 3.6%
QC to ON
- 10.5%
The amount to remit is the % above multiplied by the HST included sales.
Frequently Asked Questions
Q. I am using the HST regular method and forgot to claim the HST back on a purchase, what do I do?
A. Add the amount to line 108 of your next HST return. You have up to four years to claim input tax credits.
Historical Rates
13% - July 1, 2010 (Ontario)
5% - January 1, 2008 to June 30, 2010
6% - July 1, 2006 to December 31, 2007
7% - January 1, 1991 to June 30, 2006