As a new health professional in Canada, you probably have questions about filing frequency for your GST/HST returns. Understanding the GST/HST filing frequency is very important to make sure you comply with tax regulations and avoid penalties.

This blog post will provide you with an understanding of GST/HST filing frequency, its impact on your business, and our tips to stay compliant using our experience helping new health professionals with GST/HST.

So whether you're just starting out or already established as a health professional, read on to learn more about GST/HST filing frequency!

Before we get started, did you know as a new health professional, you can register early for GST/HST? Get our free guide, “What New Health Professionals Need To Know About Registering Early for GST/HST,” to learn more about registering early now!

Short Summary

GST/HST filing frequency is ultimately determined by the amount of revenue generated from your business's revenue from taxable supplies in your fiscal year.

Your yearly revenue from taxable supplies volume determines your GST/HST reporting threshold amount, which then determines your GST/HST filing frequency.
Record keeping, using technology and working with professionals can help your business remain compliant with GST/HST regulations.

Understanding GST/HST Filling Frequency

GST/HST filing frequency refers to how often a business must submit its GST/HST returns. This frequency is determined by factors like revenue generated from revenue from taxable supplies and minimum reporting period requirements. CRA has monthly, quarterly, or annual reporting periods based on a business's annual total revenue from its taxable sales.

To better understand GST/HST filing frequency, let's look at the factors affecting the frequency and the different reporting periods.

Factors Affecting Filling Frequency

The size of your business directly impacts your filing frequency. Larger businesses with higher revenue need to file GST/HST returns more frequently than smaller businesses with lower revenue.

Apart from the size of the business, reporting period is another essential factor affecting your GST/HST filing frequency. The reporting period refers to the timeframe in which a business is obligated to submit its GST/HST returns, which may differ based on the size of the business.

Different Reporting Periods

The reporting period for your GST/HST filing is usually determined by your total annual revenue from taxable supplies in the prior year. These periods can be monthly, quarterly, or annually.

While there are minimum filing frequency requirements, you may choose to file more frequently than your minimum required reporting period. This flexibility allows you to adapt your GST/HST filing to your unique needs and circumstances.
Make sure to consider your cash flow when electing your filing frequency. This is why it is important to do your budgeting and bookkeeping accurately every month to make sure you know which months you earn the most and can be comfortable in remitting your GST/HST collected to CRA. Get access to our free bookkeeping template here!

How to Determine Your GST/HST Filling Frequency

It all comes down to your sales from taxable supplies, as that is used to determine the minimum threshold for the reporting period and filing frequency.

If your revenue from taxable supplies is $1.5 million or less, your minimum filing and reporting period is annual. However, you can choose to file and report quarterly or monthly.

If your revenue from taxable supplies is between $1.5 million and $6 million, your minimum filing and reporting period is quarterly. However, you can choose to file and report monthly.
If your revenue from taxable supplies is more than $6 million, your minimum filing and reporting period is monthly.

Now, let's explore specific scenarios, such as determining filing frequency for new registrants and the process of changing your filing frequency.

New Registrants

If you are a new registrant, you have the same requirements to submit your GST/HST returns on a monthly, quarterly, or annual basis to fulfill your GST/HST filing obligations depending on the revenue from taxable supplies of your business.

It's worth noting that small suppliers, with revenue from taxable and zero-rated supplies less than $30,000, are not mandatory to register for GST/HST, which would provide some relief for your smaller business when you are just starting out. However, you can choose to register early, which comes with its own benefits and drawbacks. Read more about the benefits of registering early in our freebie “What New Health Professionals Need To Know About Registering Early for GST/HST”!

Changing Your Filing Frequency & Filing Deadline

If you find yourself in a situation where you need to modify your GST/HST filing frequency, you have to submit a request to CRA. To do so, you'll need to fill out an election form GST20, which is available in CRA My Business Account. After submitting this form, CRA will assess your request and make a decision accordingly.

Compliance and Deadlines for Different Reporting Period Frequencies

Meeting compliance requirements and deadlines are important to avoid penalties.

The deadline for submitting a GST/HST return is different based on your reporting period. Let's explore the specific deadlines for monthly, quarterly, and annual filers.

Monthly Filers

If you are a monthly filer, you must submit your returns and remit any amount due no later than one month after the end of your reporting period.

The payment deadline is the same as the filing deadline.

Quarterly Filers

If you are a quarterly filer, you must file your returns one month following the end of your reporting period.

For businesses with December 31 year-end, the deadline for filing is:

Quarter 1: April 30
Quarter 2: July 31
Quarter 3: October 31
Quarter 4: January 31 of the following year

For businesses with a different year-end, the deadline for filing is as follows for example:

If your fiscal year-end is August 31, Quarter 1 is from September 1 to November 30, and filing deadline is December 31

The payment deadline is the same as the filing deadline.

Annual Filers

If you are an annual filer, your GST/HST returns must be submitted no later than three months after the end of the fiscal year.

For businesses with December 31 year-end, the filing deadline is April 30th.

For businesses with a different year-end, the filing deadline is 3 months after fiscal year-end, for example:

If your fiscal year-end is August 31, the filing deadline is November 30.

The payment deadline is the same as the filing deadline.

Penalties for Late Filing

Filing your GST/HST returns late can result in penalty charges. These charges are calculated based on the amount of taxes owed and the number of days late.

Let's take a closer look at the specific calculations for penalty charges.

Penalty Charges

Penalty charges are additional fees applied to any unpaid taxes. The penalty charges for late filing of GST/HST are calculated as 1% of the total amount due plus 25% of the amount due, multiplied by the number of months the return is overdue, up to a maximum of 12 months.

For example, if you owe $3,500 in GST/HST balance and you are 1 month late in filing your return, your penalty would be calculated as:

($3,500 X 1%) + ((25% X ($3,500 X 1%)) X 1 month) = $43.75.

If you are 2 months late in filing your return, your penalty would be calculated as ($3,500 X 1%) + ((25% X ($3,500 X 1%)) X 2 months) = $52.50

…And so on if your return is still overdue.

You must file your GST/HST returns electronically; if your annual taxable supplies are more than $1.5 million, failure to do so will result in a penalty of $100 for the initial return not filed electronically and a penalty of $250 for each following return not filed electronically.

It's important to keep in mind that non-compliance and repeated late filing can lead to further penalties.
You can read more about the penalty charge of late filing of GST/HST and other penalty charges here.

Tips for Staying Compliant with GST Filing Frequency Requirements

Staying compliant with GST/HST filing frequency requirements might seem like a scary task, but it doesn't have to be. By using practical tips, such as record keeping, using technology, and working with professionals like the Tyagi Group, you can streamline the process and guarantee accuracy.

Let's explore these tips in more detail.

Record Keeping

Accurate and timely record-keeping is key to ensuring compliance with GST/HST filing frequency requirements. By organizing your financial documents, distinguishing between business and personal expenses, digitizing records, and maintaining records for a minimum of seven years, you can ensure that you're well-prepared for GST/HST filing.

Using Technology

Technology can be your best friend when it comes to GST/HST filing. Using software solutions, such as Quickbooks, can automate your GST/HST filing process and provide features such as invoice generation, e-way bill generation, and reconciliation.

With these technological tools, you can make sure that filing your that the process of GST/HST is smooth and the amounts reported are accurate.

Working with Professionals

Working with professionals like Tyagi Group can provide valuable guidance and advice to ensure compliance with GST/HST regulations. When selecting a professional for GST/HST filing, it's important to make sure that they are knowledgeable and experienced in GST/HST regulations and the health industry.

Even if you are working with a professional, reviewing a completed GST/HST return before submission is very important, as it will eventually be your responsibility to make sure it's accurate.

At Tyagi Group, we empower our clients to understand the GST/HST requirements and walk them through the filing process so that they can independently file their GST/HST returns.

GST/HST Filings For New Health Professionals

Understanding GST filing frequency and staying compliant with its requirements is essential for all health businesses. By considering factors affecting frequency, determining your specific filing frequency, complying with deadlines, and implementing practical tips like record keeping, using technology, and working with professionals, you can make sure your business remains compliant and avoids penalty charges.

Now you can tackle the world of GST/HST filing frequency with confidence!

Learn the best time to register for GST/HST and what to do after with GST/HST For New Health Businesses: The online course to understand and meet your GST/HST requirements for your new Canadian health business.

Frequently Asked Questions

When does your reporting period change?

If your total revenue from taxable supplies in the previous fiscal year was $1.5 million or less, you will have an annual reporting period during the current fiscal year if your revenue is not more than $1.5 million.

If your revenue from taxable supplies changes to more than $1.5 million but less than $6 million in a fiscal year or any of your consecutive fiscal quarters in that year, then your minimum filing and reporting period is quarterly, beginning the first day of the quarter after the change.

If your revenue from taxable sales is more than $6,000,000 in a fiscal year, you have to report monthly beginning the first day of the fiscal quarter that follows the fiscal quarters ending in that fiscal year during which you went over the $6,000,000 threshold.

You can choose to file more frequently than required anytime to fit your business needs by filling out the election form GST20, which is available in CRA My Business Account.

How do I change my GST/HST fiscal year?

If you want to make a change to your GST/HST fiscal year, you can make the change online in CRA My Business Account or by filling out Form GST70.

Your election to change your GST/HST fiscal year has to stay in effect for at least one year (12 consecutive calendar months).

If you selected an incorrect fiscal year when you became a GST/HST registrant, do not use the form mentioned, instead, call CRA at 1-800-959-5525.

Who has to make installment payments?

If you are an annual filer and your net tax for the previous fiscal year was $3,000 or more, you have to make quarterly installment payments during the current fiscal year. If you do not remit installments, you will incur penalties and interest.

To calculate your installment payments and view the related due dates, go to CRA My Business Account.

These quarterly payments are due within one month after the end of each of your fiscal quarters, and the best practice is for each quarterly payment to be equal to one-quarter of your net tax from the previous year.

If you are a new registrant and an annual filer, you may have to make installment payments during your next fiscal year, even if your net tax is less than $3,000. This could happen if your first year of filing for GST/HST is less than a full fiscal year. To determine if you need to do this, estimate what your net tax will be for your next fiscal year by prorating your net tax from your short fiscal year.

To do so, divide the net tax for the first short fiscal year by the number of days that you were registered in that fiscal year. Then multiply this amount by 365. If the estimated amount is $3,000 or more, and your net tax for the next fiscal year will be $3,000 or more, you will need to make installment payments in the next year.