Running a business in Canada comes with many responsibilities, and filing your GST/HST return is one of them.
If you’re registered for GST/HST, you must report the tax you collect from your customers and the tax you pay on business expenses. Filing GST online is the easiest and most efficient way as it saves time, reduces paperwork, and helps you avoid penalties from the Canada Revenue Agency (CRA).
In this blog, we will be walking you through everything you need to know about how to file GST online in Canada. From preparing your documents to submitting your return, we’ll break down the process step by step.
Table of Contents
What is a GST/HST Return?
A GST/HST return is a report that businesses submit to the Canada Revenue Agency (CRA). This report shows how much GST/HST you charged your customers and how much GST/HST you paid on your business expenses. If you collected more than you paid, you owe the difference to the CRA. If you paid more than you collected, you may get a refund.
Why Businesses Must File GST/HST Returns
Businesses must file GST/HST returns to stay compliant with CRA rules, avoid penalties, and report taxes collected from customers and taxes paid on expenses. Remember that timely filing helps you avoid penalties and may result in tax refunds.
Filing Frequency and Deadlines
Your GST/HST filing frequency depends on your business size and annual sales. CRA may ask you to file monthly, quarterly, or yearly. Most small businesses file quarterly or yearly. Monthly filing is usually for larger companies with high revenue.
Preparing to File Your GST Return Online
Preparing to file your GST return online starts with gathering the right information and choosing a suitable method:
Information and Documents You’ll Need
Before you start filing, gather all the information you need. This includes your 15-digit business number, the reporting period dates (such as January to March), total sales, GST/HST collected, and business expenses where you paid GST/HST, among others. Having these ready makes it easier to follow the steps on how to file the GST HST return online.
Choosing the Right Filing Method
You can file your GST return using different online options. Most businesses use the CRA’s My Business Account or GST/HST NETFILE. These are secure government portals that let you view and file returns, make payments, and track your balance. You can also use Represent a Client if an accountant or bookkeeper is filing on your behalf. Another option is using third-party accounting software like QuickBooks, which connects directly with CRA.
No matter which method you choose, knowing how to file business GST online is essential for smooth tax reporting.
Are you confident your business tax filings are fully optimized and compliant?
Step-by-Step: How to File GST Return Online
Filing your GST return online may seem complex, but breaking it down into clear steps makes the process simple and manageable. Here’s a step-by-step guide to help you file accurately and on time:
Step 1: Log into CRA’s My Business Account or NETFILE
Visit the CRA website and click on My Business Account or GST/HST NETFILE. You can sign in using your CRA user ID and password or use a sign-in partner like your bank. Make sure your business number is linked to your account before starting.
Step 2: Select the Reporting Period and Return Type
Once logged in, choose the GST/HST return option. Then select the correct reporting period (e.g., January 1 to March 31). Ensure the period matches your business cycle.
Step 3: Enter Sales and Tax Collected
In this step, enter your total taxable sales and how much GST/HST you collected. If you had zero-rated or exempt sales (like basic groceries or exports), list those too. This part is key to understanding how to file GST return online without errors.
Step 4: Claim Input Tax Credits (ITCs)
Here you report the GST/HST you paid on business expenses like office supplies, rent, and services. You can claim this back as an Input Tax Credit (ITC), which reduces the amount you owe.
Step 5: Review and Submit Your Return
Before you submit, double-check everything: sales figures, GST collected, and ITCs claimed. If all looks correct, submit the return electronically. You’ll get a confirmation number, which you should save.
Step 6: Make a Payment or Request a Refund
If your collected tax is more than your ITCs, you owe the CRA money. Pay through online banking, My Payment, or pre-authorized debit. If your ITCs are more, CRA will issue a refund through direct deposit. This final step is important in learning how to file a GST return online successfully.
How to File GST for Quebec (Revenu Québec)
If your business is based in Quebec, the process for filing GST and QST is slightly different and must be done through Revenu Québec instead of the CRA.
GST/HST and QST Filing for Quebec-Based Businesses
In Quebec, tax filing is a bit different. If your business is based in Quebec and registered for GST and QST (Quebec Sales Tax), you don’t have to file with the CRA. Instead, you must file both taxes through Revenu Québec. They handle both GST and QST returns for businesses operating in Quebec. Even though the process is different, it is still important to know how to file a GST HST return online in your specific province to avoid confusion.
Using Revenu Québec’s Online Services
To file GST/HST and QST in Quebec, visit Revenu Québec’s website and log into My Account for businesses. Just like the CRA, you will need your business number, sales figures, and taxes collected. The steps are similar: report sales, claim input tax credits, and submit the return.
Common Mistakes to Avoid When Filing GST Online
Filing your GST return online is simple, but small mistakes can lead to delays, penalties, or missed refunds. Below are common errors to watch out for:
| Common Error | Details |
| Filing Late or Missing Deadlines | One of the most common mistakes is missing your deadline. CRA charges late fees and interest on unpaid amounts. Even if you don’t owe anything, you must still file on time. |
| Incorrect Tax Codes or Amounts | Entering the wrong tax amounts or using incorrect codes (e.g., zero-rated vs. exempt) can lead to errors. It may trigger an audit or delay your refund. Always double-check your figures. |
| Forgetting to Claim Eligible ITCs | Many businesses forget to claim Input Tax Credits. This means you pay more than you should. Make sure to keep all receipts and records to support your claims. |
By staying organized, double-checking your entries, and understanding the rules, you can avoid these common mistakes and file your GST return accurately.
After Filing: What Happens Next?
Filing your GST return is just one part of the process. Here’s what to expect after submission, and what to do if you spot an error.
How to Confirm Your Return Was Accepted
Once you file, the CRA or Revenu Québec will send a confirmation message. It includes a transaction ID that proves you filed successfully.
What to Do If You Made a Mistake
If you realize you made a mistake after filing, don’t worry. You can correct it by filing an adjustment request. CRA allows you to amend past returns online. Fixing errors quickly helps avoid penalties and interest.
In Essence,
Filing GST doesn’t have to be confusing. Once you understand the steps, it becomes a simple part of running your business. Keep your documents organized, mark your deadlines, and use online tools like CRA’s My Business Account or NETFILE.
Knowing how to file GST online will save you time, help you stay compliant, and even help you get refunds faster. Whether you are a new business or have been operating for years, learning how to file a GST HST return online is a skill that will keep your finances healthy and stress-free.
Frequently Asked Questions
Can I file GST returns myself without an accountant?
Yes, you can file GST returns yourself without an accountant. If you’re comfortable with numbers and have organized records, you can easily learn how to file GST return online on your own.
What if I miss my GST return deadline?
If you miss the deadline, CRA may charge late fees and interest on any amounts owed. You should still file as soon as possible to reduce penalties and avoid future problems.
How do I file a zero return (no sales or purchases)?
Even if your business had no sales or purchases, you must still file a GST return. Simply enter zero for your figures and submit the return to remain compliant.
Do I need to file GST returns if I haven’t collected any GST?
Yes, registered businesses must file GST returns for every reporting period, even if no GST was collected.
Can I file GST online for multiple businesses under one CRA account?
You can file for multiple businesses if each is linked to your CRA My Business Account. Note that you must have proper authorization and access for each business.
