2016-12-15 00:00:00TaxesEnglishReview how to calculate net tax. Read about the regular method for calculating net tax for your GST/HST return.https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/craft-brewer-calculates-her-business-net-tax.jpgHow to Calculate Net Tax

How to Calculate Net Tax

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If you sell taxable goods and services, you may need to remit goods and services tax or harmonized sales tax to the Canada Revenue Agency. However, you are also allowed to claim an input tax credit for the GST/HST you pay on business expenses. Your net tax is the difference between these two amounts, and to calculate net tax for quarterly or annual GST/HST returns, you should take the following steps:

  1. Add up the total of all the GST/HST you collected over the reporting period.
  2. Figure out how much GST/HST you paid on business purchases.
  3. Subtract what you collected from what you paid.
  4. The difference is your net tax and the amount you should submit to the CRA.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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