If you are in business chances are you are required to collect and remit GST or will be at some time in the future. So when are GST payments due? Here are three important sets of dates you need to know:
- The first day you need to collect GST
- Your required registration date
- The dates your GST remittances are due.
For the purposes of this article I will assume you are providing goods or services that are subject to GST. With that knowledge obstacle overcome the first day you need to collect GST largely depends on when you exceed taxable supplies of $30,000. If you exceed $30,000 in taxable supplies in a given quarter you are required to collect on the sale that exceeds the $30,000 and all subsequent sales. A little tricky if you are not watching closely.
If you exceed $30,000 in sales or more in the last four consecutive calendar quarters or in any single calendar quarter you are also required to collect GST in the second month following the four consecutive quarters. For example, if the last four consecutive quarters ended on June 30th and your sales exceeded $30,000 over the same period you have to collect GST payments on the first sale and all sales after July 31st.
The second GST date you need to know is your registration date. Using the example above you are required to register within 29 days after the date of the sale that exceeded the $30,000 threshold. Similarly, you have 29 days from the one month grace period provided by the Canada Revenue Agency when you exceed the $30,000 threshold over four consecutive quarters. In our example above August 29th would be last day you could register for GST without incurring any penalties.
The third set of GST payment dates you need to know are your remitting due dates. The Canada Revenue Agency provides assigned and optional reporting dates by sales thresholds. If you have taxable sales in excess of $6,000,000 you are assigned monthly remitting; taxable sales over $1,500,000 and under $6,000,000 are assigned to remit quarterly and can opt to remit monthly. Under $1,500,000 you are assigned to remit annually, but can opt to remit quarterly or monthly. Charities and financial institutions are assigned annual remitting dates and can opt to remit quarterly or monthly.
The Canada Revenue Agency publishes a great 80 plus page GST information booklet that has most of the important information you need to know about. If you are averse to reading 80 plus pages of GST information you can always call me.
Padgett Business Services
Redwood Meadows, Calgary, AB T3Z 1A3