HST (Harmonized Sales Tax) has been around the people in Ontario for a decade when the business owners were unsure what needs to be remitted or when they need to pay it. You cannot know without knowing about your eligibility for it. Myriads did not like HST in Ontario in the past. However, it was being introduced to make things easier for the people in Canada and to recover the depriving Canadian economy in the financial crisis.
Whom Should You Contact to File Your HST Returns?
HST has made things easier for businesses as this form of tax combines multiples sales taxes into one number; for the same reason, it is called harmonized sales tax. However, you cannot file your HST correctly unless you know about the tax itself, besides relevant obligations and exceptions concerning your HST. What can you do to know about all the requirements of your HST? You can feel stress out over your HST filing obligations as you may not be a tax expert. Instead of taking the burden of filing your HST return yourself, you can contact a professional accounting firm that offers tax services to business owners like you.
When Do You Need to File Your HST Returns? Why File It?
If your business renders taxable goods or services in Canada and earns a revenue of more than $30,000, it means you have to file your HST returns. Both the residents and non-residents of Canada have to file HST returns based on the previous condition. However, you will need HST filing assistance to make the most of filing your taxes that a professional accounting firm can always assist you with. Small businesses are allowed to use the Quick Method to calculate their HST remittance introduced by the CRA (Canada Revenue Agency). You should file your returns on time, abiding by the CRA guidelines to avoid any penalties on account of missed or late filings.
The Best Way of Filing Your HST Returns On-Time and Saving Your Money:-
Typically, you would have different deadlines based on the nature of the business you might be running, plus the options you would have taken. There are other methods to file your returns and what benefits you. To file HST returns on time, you would need to rely on the tax advisor’s skills. All goods are not subjected to HST concerning the province where they apply, and some business owners do not need to charge HST on goods like milk and bread and should be omitted from your charge.
ITCs (Input Tax Credits) and HST:-
Certain business expenses qualify as input tax credits that a tax advisor can help you determine and save a lot more on taxes. For a fee to be eligible for HST, you need to have your business registered with the CRA for this purpose. Most Canadian companies are registered, and some do not even need to register. You can have problems determining those expenses with HST filing; however, this challenge can be best overcome if you consult a tax expert. A tax expert can also guide you with the right strategies to help you file your HST with the best options that you can take advantage of.
Can You Recover HST as a Business Owner?
You need to know the process concerning how HST works to find an answer to this question. Business owners collect HST on their sales and pay (remit) it to the CRA after subtracting HST paid on their expenses. HST return is filed monthly, quarterly, and yearly: neither an income nor expenses but a liability for the business. All business’s income and expenses should be reported net of harmonized sales tax. In other words, HST that a company pays is recoverable.
As a reputable business owner, you need to file your tax returns to the CRA on time to avoid penalties. Business owners need to file HST returns if their revenues surpass $30,000. It was made obligatory in the past and is still in existence to make things easier for businesses. You might not know the requirements or obligations to file HST; in that case, you would need to consult a tax expert whom you can find in a professional accounting firm offering tax services to business owners like you. You need to file your HST returns on time to avoid possible penalties. The best way of filing your HST returns is by utilizing a tax advisor’s help and saving your money as much as possible. A tax expert can also guide you about the ITCs while you file your returns. Lastly, HST that a business pays is neither an income nor an expense and is recoverable.