If your Canadian small business earns more than $30,000 in a single calendar quarter, or over four consecutive quarters, the law requires you to register for, collect, and remit the Goods and Services Tax (GST) or Harmonized Sales Tax (HST). But once you have collected that tax, how do you actually report it to the Canada Revenue Agency (CRA)?
Since January 1, 2024, the CRA removed the mandatory electronic filing threshold. Even so, filing your GST/HST return online remains the fastest, most secure, and most efficient way to manage your tax obligations.
This guide explains how to file your GST/HST online in Canada, what you need to prepare, and how to avoid the most common filing mistakes.
3 Ways to File GST/HST Online in Canada
The CRA offers three primary ways for Canadian businesses to file their GST/HST returns online. The method that works best for you depends on your accounting setup and whether you use the CRA's digital portals.
1. GST/HST NETFILE
GST/HST NETFILE is a direct online filing service provided by the CRA. It lets you submit your return through a secure web form without needing a CRA account.
Who it is for: Businesses that have not yet set up a CRA My Business Account but have their GST/HST numbers ready.
What you need: Your 9-digit Business Number (BN), your reporting period dates, and your 4-digit Web Access Code (WAC). The WAC is usually printed on the personalized GST34-2 return mailed to you, or you can request one online.
2. CRA My Business Account
For business owners who already have a CRA My Business Account, this is the most convenient filing option. Once logged in, you can file your return without a Web Access Code because your identity is already verified.
Who it is for: Business owners who manage their corporate taxes and payroll through the CRA portal.
What you need: Your CRA My Business Account login credentials. Simply navigate to the GST/HST section and select "File a return."
3. Electronic Data Interchange (EDI) or Accounting Software
Modern cloud accounting software like QuickBooks Online or Xero lets you prepare your GST/HST return directly from the platform, or generate a file you can upload to the CRA.
Who it is for: Businesses that use cloud accounting software to track income and expenses.
What you need: Your accounting software configured with the correct tax codes and your CRA credentials.
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Step-by-Step: How to File Using GST/HST NETFILE
If you are using the standard NETFILE web form, follow these steps:
- Calculate Your Totals: Before logging in, calculate your total sales, the total GST/HST you collected, and the total GST/HST you paid on business expenses (Input Tax Credits or ITCs).
- Go to the NETFILE Portal: Visit the CRA's GST/HST NETFILE page.
- Enter Your Details: Input your Business Number (BN) and your 4-digit Web Access Code.
- Fill in the Form: The online form mirrors the paper GST34-2 return. Here is what each line means:
- Line 101: Enter your total sales revenue for the period.
- Line 105: Enter the total GST/HST you collected.
- Line 108: Enter your total ITCs (the GST/HST you paid on expenses).
- Line 109: The form automatically calculates your net tax (Line 105 minus Line 108).
5. Submit and Save: Once you submit, the CRA provides a confirmation number. Save or print this page for your records.
When Are GST/HST Returns Due?
Your filing deadline depends on your reporting period, which the CRA assigns based on your annual sales revenue.
| Reporting Period | Filing Deadline | Payment Deadline |
|---|---|---|
| Monthly | One month after the end of the reporting period | One month after the end of the reporting period |
| Quarterly | One month after the end of the reporting period | One month after the end of the reporting period |
| Annually | Three months after the fiscal year-end | Three months after the fiscal year-end |
Important note: If you are an annual filer but your net tax for the previous year was $3,000 or more, you must make quarterly installment payments throughout the year, even though you only file one return annually.
What Are Input Tax Credits (ITCs)?
One of the key benefits of being a GST/HST registrant is the ability to claim Input Tax Credits (ITCs). In short, ITCs allow you to recover the GST/HST you paid on eligible business expenses, such as rent, utilities, office supplies, and professional fees.
When you file your return, you subtract your ITCs from the GST/HST you collected. As a result, if you collected more than you paid, you owe the CRA the difference. If, on the other hand, you paid more than you collected, the CRA will issue you a refund.
Need Help Managing Your GST/HST?
Calculating ITCs, keeping the correct receipts, and filing on time can be a real headache for busy business owners. Missing a deadline triggers immediate CRA penalties.
At Enkel, our bookkeeping services include preparing your GST/HST returns. We make sure your sales tax is calculated accurately, your ITCs are maximized, and your returns are filed on time, every time. If you need a financial partner to take this off your plate, contact us today.
