What is the GST Refund?

The general sales tax (GST) refund refers to several GST credits or rebates. You don’t want to miss out on getting yours if you’re eligible, so you should learn more about them. Wondering how to get GST refunds for your small business? Read on to find out more.

When Can You Expect a GST Refund?

Your country’s designated revenue agency issues goods and services tax credits on July 5, October 5, January 5 and April 5 of each tax year. The GST rebate payment is either by cheque or direct deposit.

The GST credits are issued to offset the GST tax paid by certain residents in your country. When you file your income tax return, the local authorities determine whether you’re eligible for GST credits based on your income. You also need to be at least 19 years old in most countries, to be eligible.

Claiming a GST Input Credit

As a small business owner, you may qualify for a GST input tax credit (ITC) depending on your country. Wondering how to claim GST refunds for your small business? Then you’ll want to know that GST ITC is credit for GST you pay when accounting for your business expenses. If you’re claiming this input credit, you must charge GST on your goods or services and have a GST account with the local tax authorities. When you incur reasonable expenses or make purchases for using, consuming, or supplying needs related to your commercial business activities, those costs may qualify for credit.

Your receipts and invoices need to contain certain information to support your claim, and the type of information varies depending on how much you spend. Your local tax authorities’ website should lists the information about the invoices and receipts you need, and how to apply for your input credit on your GST return. Most GST registrants have four years to claim ITCs, but these times may differ country-to-country. 

If you're interested in claiming a refund, you'll need to first log into your country’s GST portal. Once you're in, fill in the GST payment pre-application form with all of the necessary information. 

How To Calculate a GST Refund

If you’re unsure how much ITC you can claim, An ITC calculation can give you a better idea. 

You can calculate your GST refund by comparing the amount you have paid in purchases against the amount you have collected in sales. 

GST Rebates for Errors and Other Situations

A GST rebate refers to a refund of GST you pay in error or GST you incur in other situations. And your local authorities don’t require you to register the GST to get some of these refunds. For example, if you pay the GST on a non-taxable item by mistake, you should make a GST refund claim, because you’re eligible for a refund.Your local authorities website should provides a list of reasons for claiming refunds and how to claim GST refunds.

It’s good to know the government helps you get your money back in the form of rebates and credits. Because when you’re in business, every dollar counts. How do you track what you’re paying out and taking in? Over 5.6 million customers use QuickBooks. Join them today to help your business thrive for free.