In this article we will explain the basics about GST/QST remittance forms. GST, Government Service Tax, also called value-added tax, is imposed by the Federal Government of Canada. Every province is also entitled to impose their own sales tax. So, for people living in Quebec, the sales tax is QST which stands for Quebec Sales Tax. The amount of this tax is 9.975%. GST, QST are types of taxes that every business owner pays on the revenue they earn. When filing GST/QST returns, the GST/QST collected on revenues is subtracted from the GST/QST incurred on expenses. If a client’s sales tax minus the expenses was higher, than they pay the difference and vice versa.

What do accountants and bookkeepers do?

Accountants and bookkeepers help clients pay the least amount of GST/QST by using legitimate expenses against the GST/QST collected on revenues. They also check if any of their clients are entitled to any refunds. When hiring an accountant or bookkeeper, confirm that they are experienced  in local and policies, as well as in your industry, rules and regulations in order to guide you properly.

The job of bookkeepers and accountants is to make your GST QST returnsfiling process easy and smooth. They make the GST/QST filing process as easy as possible for you to fill in or fill it for you once the bookkeeping for the period due is completed. It is recommended to hire an experienced bookkeeper or accountant to complete the GST/QST remittances so that they are completed accurately and efficiently to avoid a verification or an audit.

Filing GST/ QST in Canada

Filing GST QST returns can be a challenging process. Sometimes, the terms used by tax authorities are complex and thus, a common businessman has little idea about the language used in those return forms.  For example, there are some rules related to real properties that the owners must understand in order to file their return in a proper manner. If the forms are not filled properly, they can get your organization fined. This misunderstanding can be avoided if the organizations have proper guidance regarding the filling of returns.

In Canada, the rule of thumb is, when a company or business is registered or incorporated, and if the company foresees making over $30,000 of revenues annually; than they by law need to get sales tax numbers. The filing frequency of the GST QST returns is the business owners decision. They can choose to file their GST/QST return monthly, quarterly or annually. The government provides an end of month grace period to submit the remittance. So for example; if your GST/QST filing needs to be remitted for Q1 (January to March) This report will be mailed out to you first week of April and will need to be remitted by April 30th.

If you are supposed to report monthly or quarterly, you have to file a return and pay the amount you owe no later than in a months’ time.

Almost All businesses in Canada generating revenues of over $30,000.00 annually obtain GST/QST numbers. Once the registration process for the GST/ QST is completed, businesses are allowed to charge sales tax on the supplies that they provide to their customers and use the sales tax incurred on the expenses to reduce payable.

It is your responsibility as a business owner to file your taxes in the prescribed manner. People should be aware of their responsibilities and their rights towards the government in particular and the community in general.