When is the GST payment date in Canada, what is it, what are the features of this tax, and who is eligible to receive it – these are questions that many locals ask. There are three different kinds of sales and service tax payments: GST, PST, and HST. Each has its own specifics and nuances.
What is the GST?
The GST credit is an untaxed amount that is paid quarterly by the government to a certain category of individuals. It is designed to reduce the burden of additional taxation on low- and middle-income families.
The credit is provided by the federal government of Canada and depends directly on the applicant’s income level for the reporting year and the number of children in the family. However, the amount of the GST differs from province to province. But payments are made across the country on a specific date set by Canadian law.
In some states, the GST is included in the regional tax regime to form the HST, a harmonized sales tax. This applies to the provinces: Prince Edward Island, Newfoundland, Labrador, Ontario, New Brunswick, and Nova Scotia.
In all of these regions, the HST is 15%. The exception to this list in Ontario. Here the HST is set at 13%, which includes a 5% federal sales tax on goods and services.
Other provinces have a regional sales tax, the PST, which is paid separately from the GST. The following states have this system of taxation: Quebec (9.975%), Saskatchewan (6%), Manitoba, and British Columbia (7%). In some regions, there is no provincial tax, only the GST of 5%. This applies to the states of Nunavut, Unicon, Alberta, and the Northwest Territories.
GST payment date in 2022
The Canada Revenue Agency has set the following payment dates for when the GST is introduced in 2022: the 5th of January, April, July, and October. Payments are suggested to be received by direct wire transfer to a bank account. If you want to check the amount and benefits available to you, you can use the CRA Personal Profile features.
Who can receive payments when the GST goes into effect?
GST credits are only available to Canadian citizens who have a Social Insurance Number (SIN). The IRS uses it to check your income tax return and see if you qualify for the program. In addition to Canadian citizenship, you must meet one of the criteria:
- age – at least 19 years old;
- married or in a civil partnership;
- you are a parent;
- live with your child.
Individuals who are already divorced or not living with their child at the time of application can also receive benefits. Only those who were married during the reporting period had a joint household with a partner, or were living with a child are eligible.
How do I get a GST credit?
As of the 2014 reporting year, the CRA system automatically determines if an applicant is eligible for the GST credit. This happens after filing a tax return and an annual allowance. You do not have to have the income to qualify for a GST payment accrual.
If you have never applied for GST, you will need to:
- fill out Form RC 151 – if you have no children;
- fill out Form RC 66, if you have children;
- send the form to the CRA office where you live.
If you have already applied for Child Benefit, you will automatically receive the GST. You will not have to fill out an additional form. If a GST credit has not been added to your general family allowance, you can use the CRA Personal Area features.
You will need to enter your child’s name, gender, date, and place of birth. When you can’t access your CRA account, just fill out a paper RC 66 form and mail or courier it to the Canada Revenue Agency.
How much is the GST in bc?
The amount of the GST payment depends directly on your total net family income and the number of children living with you. Every child under 19 years old is counted. Payments are transferred on a schedule from July to June based on the tax return for the reporting period.
For example, to accrue the GST credit in July-June 2021-2022, your 2020 tax return is taken into account. It should show your family income excluding taxes. If you qualify for GST payments, you will be notified in your personal CRA office.
To find out how much GST is worth in bc, you are encouraged to use an estimate calculator. In your account, enter the amount of your total net family income and the tool will automatically calculate your payments. Before the calculation, you should file your tax return for the previous year. It must be filed even if you did not receive any income during the reporting period.
For example, a single Canadian citizen whose combined annual income is less than $48,012 is eligible for a GST of $299. If a married couple applies, their credit can go up to $598. If there are children, the payment is increased by $157 for each child under age 19.
If an applicant’s family circumstances have changed, the information can be changed through the CRA personal account. Alternatively, you can contact the IRS off your province directly.
How do I know my GST number?
Citizens receive payments, but where do they come from when the GST is entered? Let’s break it down in order. Under Canadian law, almost every organization has the right to add sales tax to the cost of goods. The exceptions are small suppliers whose annual taxable revenue does not exceed $30,000. Also included in this list are entrepreneurs who sell certain goods and services.
If income is above that amount, entrepreneurs are required to assign a GST number in the CRA system for further deductions. There are several options for registration: online through the website, telephone hotline, personal visit to the IRS Canada office.
For start-ups, registering with the CRA is a smart decision – if you’re just starting a business, you’ll be able to recover your GST deductions if you purchase equipment or goods through tax credits.
When you get a GST number, you need to start making deductions to the IRS. Depending on your income level, the transaction is done monthly, quarterly, or annually. The more revenue your company has, the more often you’ll have to transfer money to a special CRA account. For example, if a legal entity has more than $6 million in revenue, the deductions are made monthly.
Depending on your company’s business, there are situations where you haven’t collected goods and services tax. In that case, you will still have to file paperwork with the IRS and indicate that the GST was not collected from consumers. The declarations are filed in the same way as in the case of registration in the system – through the website, by phone, at the office.
To find out the GST number, you can use one of the available options:
- go to a CRA account – this is where all tax deductions and entitlements are recorded;
- call the IRS hotline – you will need to give your personal or organization information to check;
- visit the IRS in person – you must have your identification documents with you.
If the provider fails to collect and remit the tax on the GST payments date – this will be considered a serious offense. If convicted, the entrepreneur faces tax penalties in the form of a hefty fine and imprisonment. Offenses include filing false income tax returns and failure to file returns.
What is the difference between GST, PST, and HST taxes?
All of these types of deductions are taxes on goods and services and differ in the following ways:
- The GST is a federal sales tax that is levied on almost all goods and services. It is set at 5% of the value.
- The HST is a combined sales tax that includes provincial deductions and the GST. These levies are relevant to Canada’s 5 provinces.
- The PST is a separate regional sales tax on almost all goods and services.
The GST payment date remains the same for each state – every 5th day of the quarter. Deductions are paid on January 5, April 5, July 5, and October 5. Payment is made during the year for the tax year. In other words, from July 2021 through June 2022, you will be paid the credits accrued on your tax return for the 2020 tax year.
If you find it difficult to figure out the tax deductions and payments on your own, we recommend contacting a knowledgeable consultant. An experienced professional will help you understand the process of registering your GST number if you are an entrepreneur. If you are an individual, a tax lawyer will tell you how to fill out your tax return and apply for a GST credit if you are eligible for one. When choosing a professional, be sure to research their experience and client reviews!