Qualified households can receive a tax-free GST/HST Credit payment from the Canada Revenue Agency each quarter. There is no application procedure; you only need to file your taxes yearly, even if you have no income to declare.
To help low and medium-income Canadians cushion the blow of the Goods and Services Tax/Harmonized Sales Tax, the government issues tax-free GST credits quarterly.
What is meant by GST Payment in Canada
Most purchases, including groceries, clothing, and furniture, are subject to the Goods and Services Tax (GST). The Goods and Services Tax (GST) applies to real estate deals and digital downloads. The Harmonized Sales Tax (HST) is the sum of the provincial sales taxes in New Brunswick, Nova Scotia, Ontario, and Prince Edward Island.
To be eligible for the GST/HST credit, you must be a Canadian resident for income tax purposes and be at least 19 years old at the beginning of the month you receive payment from the Canada Revenue Agency (CRA) and the month before. If you have at least one dependant at least 19 years old and share custody with a kid who is 19 or older, you qualify.
Canada HST Netfile
Registrants in all provinces and territories outside of Quebec can use Canada HST Netfile, CRA’s web-based filing tool, to submit their GST/HST returns. You may use it to file electronically in either the standard or expedited manner, and you can even utilize Telefile if you’d instead file over the phone.
Business online banking or the CRA’s website accepts payments toward GST/HST debt. In your bank’s “CRA payments” menu, choose “CRA GST/HST Remitter as Payee” to send money to the government.
Nobody likes paying taxes, but the GST/HST credit is one way the Canadian government helps its citizens. Simply submit your yearly tax return to Revenue Canada, even if you have no income to declare, and they will evaluate whether or not you are eligible to receive this reimbursement.
Canada GST Rebate Eligibility
You may get some of the goods and services tax (GST) and harmonized sales tax (HST) you pay on necessities back, thanks to the Canada GST refund, a federal tax credit. Every quarter, the Canada Revenue Agency (CRA) sends a check to low- and middle-income Canadians.
You must be deemed a Canadian resident for income tax purposes before and during the time you receive payments from CRA to qualify for the Canada GST rebate. Also, you still need to file a yearly tax return even with no income.
The Canada Revenue Agency (CRA) has proposed a new one-time GST credit payment for 2021 based on your adjusted family net income to reduce inflation and help families with lower and middle incomes. Whether you’re a single parent, a couple without kids, or receiving disability benefits, we’ll show you how much this additional payment may mean.
Last but not least, you need to check out at least one of the boxes below:
- You are 19 years old.
- You are married to or were formerly married to someone.
- You are a parent and currently reside or once resided with your offspring.
Canada GST Tax Credit Receive
For poor and middle-income Canadians, the Canada GST credit top-up program is an income-tested system that returns part or all of the GST/HST paid to Canadian suppliers on goods and services. CRA determines eligibility based on a family’s size and net adjusted income from the previous year’s tax return.
If the Canada Revenue Agency determines that a taxpayer is qualified for a GST/HST credit, that person will immediately be evaluated for the credit without applying.
How much is the GST/HST credit?
Whether you are married have children, and how much money you bring in as a family influences how much of a GST/HST credit you may claim.
The limits for the 2021 tax year (with distributions made between July 2022 and June 2023) are as follows:
- $467 if you are single.
- $612 if you are married or have a common-law partner.
- $161 for each child under the age of 19.
When will your GST/HST be recalculated?
Goods and services tax (GST) will likely appear on your invoices unless the items you bought are expressly excluded. However, the Goods and Services Tax (GST) credit allows eligible individuals to get a portion of this money back.
The Canada Revenue Agency has a calculator you may use to see if you qualify for benefits based on your income from the previous year and their criteria.
Some Canadian provinces have adopted a new sales tax system called harmonized sales tax (HST), combining GST with provincial sales taxes. Using this method, retailers collect tax from customers at a unified rate and then send it to the CRA.
Only Canadian residents who submit an annual tax return will have their GST refunds sent to them by the Canada Revenue Agency. Please let them know if your marital or family status changes or if you have children so they can reassess your creditworthiness and send you a new credit notification.
Due Dates for 2023 Canadian GST/HST Payments
Canadians who paid GST/HST the preceding tax year receive payments every three months. If the due date for your HST payment is a weekend or holiday, your payment will still be deemed on time if it reaches the Canada Revenue Agency by the next working day. Consider signing up for direct deposit to avoid missing any HST payments and to make submitting payments as easy as possible.
The dates below reflect when the CRA said it would distribute GST/HST credits for 2023.
- January 5, 2023
- April 5, 2023
- July 5, 2023
- October 5, 2023
How to claim the GST/HST credit
The GST credit is contingent upon meeting several criteria. Filing a tax return every year is essential, even if you have no income. When submitting tax returns for 2014 and later tax years, the Canada Revenue Agency (CRA) will automatically determine if you are eligible for it.
You can expect a notice of decision from the Canada Revenue Agency detailing the GST/HST credit you qualify for. You can ask them to rethink their decision if they find that you don’t meet the requirements.
Currently, only five provinces in Canada collect HST, which is a harmonized sales tax that combines the GST with other provincial sales taxes. The GST is a broad-based consumption tax applicable to most transactions of goods and services in Canada. For various reasons (including an obscure Constitutional clause), nations with value-added taxes require that advertised prices include the tax. However, this is not the case in Canada due to several exclusions in our Constitution.
- You can have your HST payments collected on time by the CRA directly from your bank account if your bank is a Direct Deposit participant.
- You can pay your HST online through the My Payment service, which utilizes Interac Online direct from bank account payments, or by mailing in an RC160 remittance voucher with a cheque or money order payable to the Receiver General
- Be sure to include your 15-character business number on the reverse side of the cheque/money order/postal order made payable directly to them.
How will you receive the GST/HST payments?
As a company owner, it might be challenging to keep up with HST payment laws and schedules, but with the proper knowledge and the help of specialists, you can always pay your GST/HST on time to the CRA.
Many goods and services supplied in Canada are subject to a government sales tax known as the Goods and Services Tax (GST). The Harmonized Sales Tax (HST) results from adding federal and provincial sales taxes.
You can have your HST payment transferred into your bank account or sent to you. You may use a payment calculator to determine how much you owe the CRA and sign up for direct deposit on the CRA website or by contacting your bank.
To reduce or eliminate their GST/HST liability, Canadians can take advantage of the non-taxable HST credit. Eligible applicants include:
- Full-time students.
- Adults living alone with a gross annual income of $52,255 or less.
- Families with dependents earning $64,017 or less.
The Canada Revenue Agency (CRA) has an online calculator you may use to see if you qualify for child and family benefits.