GST Services Edmonton – Timely GST Filing & Tax Services
Edmonton GST/HST Preparation and Filing. GST-HST Audit | Sales Tax CRA Audit by Bomcas Accounting and Tax Services.
Registration for Goods and Services Tax (GST)/Harmonized Sales Tax (HST)
The GST/HST registration threshold is $30,000 per year in sales. Any company that meets this sales threshold is required to register for and charge GST/HST for the fiscal year in which the threshold is met. Businesses with yearly sales of less than $30,000 may choose to register for GST/HST in order to deduct input tax credits. Failure to collect and return GST/HST is a tax violation under the Excise Tax Act, which is punishable by tax prosecution as well as fines and jail sentences if convicted. GST/HST tax violations include making a false or misleading statement under Section 327(1) of the Excise Tax Act or failing to make a return under Section 326(1) of the Excise Tax Act (Excise Tax Act).
Requirements for GST/HST Filing and Audits
The frequency with which GST/HST returns must be made is determined by the amount of sales and might be monthly, quarterly, or annually. GST/HST audits are more common than income tax audits, and most businesses should expect to be visited at some point by GST/HST auditors. You will be audited for GST/HST if you file a refund claim.
Determine whether your organization qualifies as a charity for GST/HST purposes.
A registered charity for income tax purposes is likewise a registered charity for the purposes of the Goods and Services Tax and the Harmonized Sales Tax. According to the GST/HST, public institutions, on the other hand, are not considered to be charitable organizations (that is, a registered charity that is a school authority, a public college, a university, a hospital authority, or a local authority determined to be a municipality by the Minister of National Revenue). In order to obtain additional information on how the GST/HST relates to public institutions, please contact Bomcas Accounting and Tax Services, which is based in Edmonton, Alberta.
Determine whether your charity is required to register for GST/HST.
Depending on whether your organization produces taxable supplies, it may be necessary to register for GST/HST. Even while a small supplier charity is not compelled to register for GST/HST, it may choose to do so at its discretion. Charities that are not categorized as small suppliers are required to register for the Goods and Services Tax and the Harmonized Sales Tax.
Goods & Services Tax (GST) & Harmonized Sales Tax (HST)
GST/HST is a value-added tax in Canada that was first established on January 1, 1991, to replace the former 13.5 percent Federal Sales Tax, which was a hidden tax on manufactured goods at the time of its adoption. GST/HST is also known as the Harmonized Sales Tax (HST). Section IX of the Excise Tax Act governs the application of the Goods and Services Tax and the Harmonized Sales Tax. Because the tax rate was gradually reduced from 7 percent to 5 percent over the course of two years, it is currently 5 percent as of the first day of January 2008. Previously, the figure was 7 percent. Harmonized Sales Tax is a combination of provincial sales taxes and the Goods and Services Tax (GST) levied by a number of provinces, and it is referred to as the Harmonized Sales Tax in the United States (or HST). Quebec, New Brunswick, Newfoundland and Labrador, Prince Edward Island, and Ontario are among the provinces that are taking part in the initiative. It varies from province to province, with the exception of Newfoundland and Labrador, and ranges from 13 percent in Ontario, New Brunswick, and Newfoundland and Labrador to 15 percent in Nova Scotia, with 13 percent in Ontario, New Brunswick, and Newfoundland and Labrador. Given that sales taxes are not levied in the three territories of Yukon, the Northwest Territories, and Nunavut, just the 5 percent Goods and Services Tax (GST) is required in each of these jurisdictions. Besides administering the federal Goods and Services Tax (GST), Quebec is also in charge of administering the province’s own sales tax (the Quebec Sales Tax) (QST). In addition to being the only province in charge of GST administration, the Canada Revenue Agency is in charge of the majority of the other responsibilities associated with the tax system (CRA).
Due to the fact that GST/HST is a value-added tax, it only applies to the final end-user customer who purchases the products and services at the time of purchase. When suppliers charge GST/HST on their sales at each intermediate stage of processing (for products) or for all services, the vendor is entitled to a discount (known as an input tax credit or ITC) for the GST/HST paid to their suppliers. Take, for example, our Canadian tax law firm as an example of what we mean. GST/HST is charged to our clients at the equivalent provincial rate in Canada, and we claim an input tax credit (ITC) for any GST/HST that we are required to pay. The difference between the two amounts is then paid to the Canada Revenue Agency. A similar statement might be made about a corporation that manufactures items. The company would also claim input tax credits for the GST/HST it had paid in addition to charging the tax to its customers. Because sales made outside of Canada are not subject to the Goods and Services Tax, the vast majority of exporters are eligible for a GST/HST refund (GST). In contrast, audits of GST/HST refunds are now undertaken on a continual basis at all times, regardless of when they occur.