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  • Apr 23rd, 2020 10:20 am
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[OP]
Newbie
Apr 7, 2020
9 posts
3 upvotes

GST/HST Remit (pay)

I'm a self-employed sole proprietary of my business that has a fiscal year end date of Dec-31st and a GST/HST filing deadline of June 15th.

I'm confused about the gst/hst installment payments deadlines. Do I have to pay any GST owing in quarterly figures or do I pay just one installment before April 30th? I read on the CRA website that annual filers with a fiscal year end of Dec-31 must pay their GST/HST collected before April 30th with the filing deadline on June 15th. I paid my GST installment all at once in one installment last year. During the third year of my business (last year), I didn't make any quarterly GST payments as I figured I'd just pay it all near the end of April as I have done the year prior, however, I just discovered now that I was supposed to make quarterly payments that my accountant didn't mention to me what so ever as I only had to make 1 total installment payment last year instead of 4 separate ones.

Are there penalties for not paying the installment payments on time on the quarterly due dates? Or am I okay in just owing all the GST at one time before the end of April?

Thank you!
5 replies
Deal Addict
Jan 19, 2017
4405 posts
2541 upvotes
equinoxtree wrote: I'm a self-employed sole proprietary of my business that has a fiscal year end date of Dec-31st and a GST/HST filing deadline of June 15th.

I'm confused about the gst/hst installment payments deadlines. Do I have to pay any GST owing in quarterly figures or do I pay just one installment before April 30th? I read on the CRA website that annual filers with a fiscal year end of Dec-31 must pay their GST/HST collected before April 30th with the filing deadline on June 15th. I paid my GST installment all at once in one installment last year. During the third year of my business (last year), I didn't make any quarterly GST payments as I figured I'd just pay it all near the end of April as I have done the year prior, however, I just discovered now that I was supposed to make quarterly payments that my accountant didn't mention to me what so ever as I only had to make 1 total installment payment last year instead of 4 separate ones.

Are there penalties for not paying the installment payments on time on the quarterly due dates? Or am I okay in just owing all the GST at one time before the end of April?

Thank you!
No penalty, just interest charge. Installment means multiple payments.
[OP]
Newbie
Apr 7, 2020
9 posts
3 upvotes
ml88888888 wrote: No penalty, just interest charge. Installment means multiple payments.
Thanks a lot for the reply. Is there any formula to calculate the interest owed? It would mean I've missed all the quarterly due dates of last year... I'm quite confused as the CRA website says that the payment due date is April 30th, 2020 for the 2019 taxable calendar with a Dec 31, 2019 fiscal year end. I'm still charged interest even though the payment deadline says April 30th? Also interestingly enough, I received no notice of demand or anything from the CRA telling me my installment wasn't paid quarterly. The only reason why I chose annual payments was to make the process easier and just pay all the GST at once from the entire year.

I paid my entire GST remit in one single installment last year in April, did not accrue any interest charges...my accountant at H&R Block had me set up for paying GST annually in one installment instead of quarterly installments.
Deal Addict
Jan 19, 2017
4405 posts
2541 upvotes
equinoxtree wrote: Thanks a lot for the reply. Is there any formula to calculate the interest owed? It would mean I've missed all the quarterly due dates of last year... I'm quite confused as the CRA website says that the payment due date is April 30th, 2020 for the 2019 taxable calendar with a Dec 31, 2019 fiscal year end. I'm still charged interest even though the payment deadline says April 30th? Also interestingly enough, I received no notice of demand or anything from the CRA telling me my installment wasn't paid quarterly. The only reason why I chose annual payments was to make the process easier and just pay all the GST at once from the entire year.

I paid my entire GST remit in one single installment last year in April, did not accrue any interest charges...my accountant at H&R Block had me set up for paying GST annually in one installment instead of quarterly installments.
just like your personal income tax, it depends how much tax you have to pay. If it is not too high, then you may not need to pay installments.
Deal Fanatic
Aug 21, 2007
5590 posts
497 upvotes
Markham
equinoxtree wrote: I'm a self-employed sole proprietary of my business that has a fiscal year end date of Dec-31st and a GST/HST filing deadline of June 15th.

I'm confused about the gst/hst installment payments deadlines. Do I have to pay any GST owing in quarterly figures or do I pay just one installment before April 30th? I read on the CRA website that annual filers with a fiscal year end of Dec-31 must pay their GST/HST collected before April 30th with the filing deadline on June 15th. I paid my GST installment all at once in one installment last year. During the third year of my business (last year), I didn't make any quarterly GST payments as I figured I'd just pay it all near the end of April as I have done the year prior, however, I just discovered now that I was supposed to make quarterly payments that my accountant didn't mention to me what so ever as I only had to make 1 total installment payment last year instead of 4 separate ones.

Are there penalties for not paying the installment payments on time on the quarterly due dates? Or am I okay in just owing all the GST at one time before the end of April?

Thank you!
no penalty, but you will likely be charged some interest

you typically have to do instalments if your net owing owing is $3,000 or more annually.

instalment is based on your previous tax owing....so if 2019 your net HST was $4,000 youd pay that in 4 quarterly instalments...unless you expect your HST owing to be less in which case you base it on the lower amount..if you end up basing it on the lower amount but your final hst filing is more than that youll be dinged for instalment interest
Deal Fanatic
Oct 7, 2007
8325 posts
4282 upvotes
Due to the virus, the CRA is allowing some extensions on payments as can be found at the following link:
https://www.canada.ca/en/department-fin ... individual

"We are allowing businesses, including self-employed individuals, to defer until June 30, 2020 payments of the GST/HST, as well as customs duty owing on their imports.

Any GST/HST payment that becomes owing from March 27 until the end of May can be deferred until the end of June. For GST and customs duty payments for imported goods, deferral will include amounts owing for March, April and May.

These amounts were normally due to be submitted to the Canada Revenue Agency and the Canada Border Services Agency as early as the end of March 2020.
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