How do GST/HST Corporate taxes affect your bottom line?
Since July 1, 2010, Ontario has combined its provincial sales taxes with the GST to implement a new harmonized sales tax (HST).
The HST rate for Ontario is 13%, which is comprised of a 5% federal portion and an 8% provincial portion. These taxes affect every business transaction of your company; knowledge and good management means a great deal to your cash flow and bottom line.
In addition to this, and specific to your province, consumption taxes may be imposed on properties and services such as motor fuel, carbon tax, alcohol, tobacco, parking, and others.
At Fred Albi, Chartered Professional Accountant, we provide a complete range of services with respect to taxes. We’ll offer valuable tax planning advice, and handle your HST returns effectively.
The goods and services tax (GST/HST) is a tax that applies to most supplies of goods and services made in Canada. The GST/HST also applies to supplies of real property such as land, buildings, and interests in such property and intangible property such as trademarks, rights to use a patent, and digitized products downloaded from the Internet and paid for individually.
How can you recover your GST/HST paid or payable to you?
As a registrant, you recover the GST/HST paid or payable on your purchases and expenses related to your commercial activities by claiming an input tax credit (ITC) on your GST/HST return:
- Apply for a business GST/HST number with Canada Revenue Agency (CRA)
- Register if your sales are over 30,000.00 annually
- Collect 13% on your sales or services in Ontario
- Deduct 13% on your purchases and business expenses
- Remit your HST due payable to The Receiver General
- Period to remit your return may be quarterly or yearly
What is the process for filing your HST quarterly?
If you file your HST quarterly, you need only to drop off your quarterly bookkeeping information. We will complete your bookkeeping and HST return, electronically file it for you, and forward your remittance. We offer a reminder service to ensure your returns are completed on time. Yearly remitters usually drop off their bookkeeping information at tax time and we prepare both the HST return and their tax return at the same time.
Our client base and related experience encompasses a wide range of clientele and industries including, small business start-ups, real estate, franchises, hair salons, property management, and so on. The combination of our seasoned partners and diverse backgrounds presents you with a wide range of expertise to draw from.
Please contact us for a free on-site consultation to learn more about how we can help you with your GST/HST tax services.