• Last Updated:
  • Apr 18th, 2017 10:12 pm
Jul 2, 2013
417 posts

First time filing HST

Last year I filed my HST annually with a book keeper. This year I decided to pay my HST quarterly and do it myself on the CRA website.
For the first 3 filings I will do them myself and take the last quarter to the book keeper.
I am going to file my HST charged on my invoices and deduct the material expenses HST. But what else can I deduct without getting into percentages of the HST?
In other words I guess what I am asking is, what can I 100% deduct the HST from for filing quarterly?
1 reply
Deal Fanatic
User avatar
Nov 19, 2004
7545 posts
Cambridge, ON
Do you have to report quarterly or annually? You may just need to report annually, but have to pay quarterly. Two options:

Base quarterly payments on previous year total divided by 4. Then the final payment/refund is calculated in your annual return.

Or if you choose current year calculations, then you have to estimate your final taxes for the year and divide by 4. Then the final payment/refund is calculared in your annual return, If you use current year calculations and you under pay your instalments then you will owe instalment interest.

Using option 1 is easiest, and then just let your accountant do the final return and help you determine your ITCs from your expenses at that time. Your accountant should be able to explain the two options to you.