GST / HST is due July 31st for the reporting period April 1 through June 30th.
Note that because July 31st is a Saturday, the Canada Revenue Agency allows you to file your GST / HST return the next business day without penalty.
And if you're late filing, what's the tax penalty?
According to the Canada Revenue Agency's (CRA's) RC4022: General Information for GST / HST Registrants, there's no tax penalty if your account has a $0 balance or the CRA owes you a refund on the return.
However, if that's not the case and you file a late return, the penalty is 1% of the amount owing; plus the result of the following calculation:
25% of the amount you calculated in (a) above × the number of months the return is overdue, to a maximum of 12 months.
The Canada Revenue Agency will also charge interest on an overdue GST / HST amount equal to the basic rate plus 4%.
You can also be fined for non-compliance. If you receive a demand to file a GST / HST return and do not do so, a penalty of $250 will be charged.
And just to rub some salt into the wound, you can't claim any income tax deduction for any penalty you paid or owe for failing to file a GST / HST return or for any arrears interest you paid or owe for outstanding GST / HST amounts.
The moral of the story is you definitely want to get your GST / HST return in on time if you owe the CRA money.
More on GST / HST
- Answers to Common GST HST Questions
- Why you might want to register for the GST if you don't have to
- Register for the GST
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