What Are My Obligations for GST/HST?

Whether you’re running an online store, growing a non-profit organization, or selling digital services, understanding your GST and HST obligations is essential. These taxes not only impact your operations and long-term success, but also whether your business is compliant.

Here’s a breakdown of what you need to know about Goods and Services Tax (GST) and Harmonized Sales Tax (HST), and how Zenbooks helps you stay ahead of filing deadlines.

Who Needs to Register for GST/HST?

If your Canadian business earns more than $30,000 in revenue in any 12-month period, you’re required to register for GST/HST. This applies whether you’re providing SaaS services, operating a consulting business, or even have a Shopify store.

But here’s where it gets interesting: Even if you don’t meet this $30,000 threshold, registering voluntarily could be a smart business move, especially if you’re selling to the U.S. from Canada.

That’s because it could allow you to claim input tax credits on business expenses, which would reduce your overall costs. If you have a professional service company or e-commerce business, voluntarily registering could support your financial strategy and any scaling efforts you have in mind.

Collecting and Charging GST/HST

Once you register for GST/HST, you’re responsible for collecting the appropriate rate based on where your customers are located. As you can imagine, this gets complicated fast, especially considering that different provinces have different rates. You’ll need to know which to apply and when.

As your finance team, Zenbooks can help simplify this process by setting up tools and systems that help automate tax collection, ensuring the right rates are applied to every transaction.

Filing and Reporting

Once registered, regular tax filing becomes part of your ongoing financial responsibilities. When it comes to GST filing, you’ll need to submit returns showing:

• How much tax you collected
• How much you spent on business purchases

Input tax credits could also come into play, potentially helping you recover some of what you paid on eligible expenses. It’s a similar process for HST filing. The right data, staying organized, and having clear processes in place can make the filing process much easier.

When will you need to file? It depends on your business’s size and structure, but could be as often as every month or as infrequently as every year.

Common Pitfalls

It can be difficult to keep up with GST/HST regulations, filing requirements, and rates. Some of the most common mistakes we see include:

• Not registering when your revenue exceeds the $30,000 threshold
• Missing filing deadlines
• Not claiming available input tax credits
• Charging the wrong rate for a specific province
• Overlooking GST/HST on cross-border sales or digital services

These pitfalls could have real consequences for your cash flow, growth potential, and compliance. Through collaboration and implementing the right financial tools, we can help prevent costly errors and keep you compliant.

Tackle GST/HST With Confidence

With the right finance team beside you, GST/HST filing is easy. Partner with Zenbooks not just for tax assistance but for growth, clarity, and confidence in your numbers. Connect with us to learn how our professionals can support your long-term business goals while keeping you compliant.