HST/GST Compliance
HST/GST compliance sounds mechanical until it isn’t, a registration threshold missed, an input tax credit claimed on the wrong thing, a filing period that doesn’t match how the business actually operates. Most of it is preventable. Almost none of it gets caught until the return is prepared.
WHAT HST/GST COMPLIANCE ACTUALLY INVOLVES
Registration. Mandatory once your revenue crosses the small supplier threshold, but there are reasons to register earlier — recovering input tax credits on startup costs being the most common. Whether early registration makes sense depends on what you’re spending, not just what you’re earning.
Filing frequency. Monthly, quarterly, or annual, assigned based on revenue and adjustable in some circumstances. The frequency that gets assigned by default isn’t always the one that fits your cash flow.
Input tax credits. The credits you’re entitled to claim on HST/GST paid on business purchases. This is where most of the real money sits, and where the documentation requirements are stricter than people expect.
Place of supply rules. Where the client is located can change what rate applies, particularly for services delivered across provincial or national borders. This is one of the more commonly misapplied parts of the system.
Corporate reorganizations and asset sales. Elections exist to avoid HST/GST applying on transactions between related parties or on the sale of a business as a going concern. Missing the election isn’t always fixable after the fact.
WHERE THIS GOES WRONG
Registration happens late, or not deliberately. Some businesses register only once they’re forced to, missing input tax credits they were entitled to claim in the meantime.
Input tax credits get claimed on the wrong basis. Personal-use portions of mixed expenses, credits claimed without adequate documentation, or credits missed entirely because nobody was tracking them systematically.
The filing period doesn’t match the business. A default assignment sits on autopilot for years, creating either an administrative burden that doesn’t need to exist or a cash flow mismatch that does.
Nobody reviews the return before it’s filed. For a business with any complexity — mixed supplies, cross-border clients, related-party transactions — a return prepared without review is a return prepared blind.
WHAT WE HANDLE
- HST/GST registration, including the timing decision of whether to register before you’re required to
- Ongoing return preparation and filing, matched to a frequency that fits how the business actually runs
- Input tax credit review, including mixed-use and vehicle expense calculations
- Place of supply determinations for cross-border or multi-provincial billing
- Elections related to corporate reorganizations, asset sales, and related-party transactions
- CRA correspondence and audits specific to HST/GST, where this overlaps with our audit representation work
WORKING WITH US
You work directly with Robert Occhiuto, CPA, CA. Over 20 years in public accounting, including three years at BDO Canada — one of the world’s largest accounting networks — and CPA Canada’s In-Depth Tax certification.
HST/GST is often treated as a compliance afterthought bolted onto year-end work. Here it’s reviewed as part of the same file as your corporate return, not as a separate task handled by someone else.
The first conversation is free. If your filing situation is straightforward, we’ll say so.
Common questions
Do I need to register for HST/GST? Registration is mandatory once your total taxable revenue exceeds the small supplier threshold over four consecutive calendar quarters. Voluntary registration before that point is sometimes worth it, depending on your input tax credit position.
What’s the difference between GST and HST? HST is the harmonized rate that applies in provinces that combined their provincial sales tax with GST, including Ontario. GST alone applies in provinces that didn’t harmonize. The mechanics of registration and filing are the same either way.
How often do I need to file? It depends on your revenue, and CRA assigns a default frequency at registration. Some businesses can request a different frequency than the one assigned.
What happens if I claim an input tax credit I wasn’t entitled to? CRA can deny the credit on reassessment, and depending on the circumstances, penalties and interest can apply. Documentation is the first line of defense — a credit that isn’t properly supported is a credit that’s vulnerable regardless of whether it was legitimate.
Can you handle this alongside my corporate tax return? Yes — that’s the normal arrangement. HST/GST compliance is reviewed as part of the same engagement rather than as a separate, disconnected task.
NOT SURE YOUR HST/GST FILING IS SET UP RIGHT?
Book a free consultation. We’ll look at your registration status, filing frequency, and input tax credit position, and tell you honestly what’s worth changing.