Most small businesses start out with an annual reporting period for GST/HST. As business grows, you may be legally required to change your reporting period. When your annual taxable supplies reach more than $1.5 million but are below $6 million, you must report quarterly. Whey they exceed $6 million, you must switch to monthly reporting. Annual taxable supplies are, in most cases, the same as your sales over a rolling 12-month period. The law also allows you to opt for a reporting period that’s shorter than your required reporting period. For example, if you have annual sales of $1 million, you are by default an annual reporter, but you can choose to report quarterly. This could help you manage your business’s cash flow and avoid having to make one large annual payment. It is also a good idea if you often receive refunds, since you can cash them in quicker; this could be the case if you’re an exporter who makes many zero-rated supplies. You can change the reporting period directly online on the Canada Revenue Agency’s website or by using Form GST20. The process is straightforward, but you need to know your tax numbers, your current reporting period, and your estimated annual taxable supplies.
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.