How to File GST/HST Online in Canada for Small Businesses

Filing your GST/HST return online is now a requirement for most businesses in Canada. As of January 1, 2024, all GST and QST registrants – with the exception of charities – must file their returns electronically. The Canada Revenue Agency (CRA) offers several online options, including the GST/HST NETFILE form, which allows you to file without a CRA account. This guide walks you through the process so you can meet your obligations quickly and correctly.

Why Electronic Filing Is Now Mandatory

The CRA moved to mandatory electronic filing to improve processing speed and reduce errors. If you are registered for GST/HST, you are required to file your return online unless you qualify as a charity. This rule applies to all GST and QST registrants across Canada. Filing online also gives you a confirmation number immediately, giving you peace of mind that your return was received.

What You Need to File Your GST/HST Return Online

Before you start, gather the following items:

• Your 9-digit business number (BN), which the CRA generates when you register for GST/HST through the business registration online program.

• Your GST/HST return information, including total sales and any eligible rebates.

• An access code, which the CRA provides for filing via the NETFILE form without a My Business Account.

• Internet access and a browser that supports the CRA's web application.

If you have not yet registered for GST/HST, you can do so online through the same business registration program. Once registered, the CRA will issue your business number and access code by mail.

Using the GST/HST NETFILE Form

The GST/HST NETFILE form is the simplest way to file online. It is designed for most GST/HST registrants and allows you to submit a regular return without needing a CRA user ID. Below are the steps to use this method.

Step 1: Access the NETFILE Form

Visit the CRA's GST/HST NETFILE form page at apps.cra-arc.gc.ca. You will be asked to select your language and then proceed to the secure form. The form works for both GST and eligible rebates.

Step 2: Enter Your Business Information and Return Details

Key in your business number, the reporting period, and the access code provided by the CRA. The form will guide you through entering your sales, net tax, and any rebate amounts. If you need to claim a rebate, you can do so at the same time.

Step 3: Review and Submit

Double-check all figures before submitting. Once you click submit, the CRA processes the return and provides a confirmation number right away. Save this number for your records – it proves your return was filed on time.

Other Electronic Filing Methods

NETFILE is not your only option. You can also file using:

• My Business Account – the CRA's secure online portal where you can file returns, view account history, and make payments.

• GST/HST TELEFILE – a phone-based system for simple returns.

• Electronic Data Interchange (EDI) – for businesses that file many returns or use accounting software that supports direct submission.

All of these methods satisfy the mandatory electronic filing requirement. Choose the one that suits your business best.

Paying Your GST/HST Balance

If your return shows an amount owing, you must pay by the due date. The CRA accepts payments online through My Business Account, or you can pay by mail using a cheque. Do not wait for a notice of assessment – payment is due on or before the return deadline. The CRA will not send you a bill; it is your responsibility to remit the tax.

What to Do If You Have Filing Issues

If you encounter problems while filing, the CRA offers several ways to get help:

• Online – get account information, send documents, and share feedback through the CRA's secure message centre.

• By phone – call the GST/HST contact line for answers specific to your file.

• By mail – send documents to the correct CRA address as outlined on their website.

For general information, visit the CRA's GST/HST filing page.

Frequently Asked Questions

Can I file my GST return myself?

Yes. The CRA's online form is straightforward enough for most small business owners and freelancers to complete on their own. You do not need an accountant, though many business owners choose to hire one for complex situations or to ensure accuracy. If you prefer professional help, accounting firms offer GST/HST filing services.

What is an access code and how do I get one?

An access code is a unique number the CRA gives you to use the GST/HST NETFILE form. It is mailed to you after you register for a GST/HST account. If you have misplaced it, you can retrieve it through My Business Account or contact the CRA by phone to request a new code.

Can I file my GST return without a CRA account?

Yes. The GST/HST NETFILE form is specifically designed for filers who do not have a CRA My Business Account. You only need your business number and access code. This makes it convenient for new businesses or those who prefer not to create an online account.

What is the penalty for filing late?

The research pack does not provide specific late-filing penalty rates. Generally, the CRA charges a penalty of 1% of the amount owing plus 0.25% for each full month the return is late, up to 12 months. Interest also accrues. For accurate current rates, check the CRA website or speak with a tax professional.

Do I need to charge GST if I earn under $30,000?

The standard small supplier threshold in Canada is $30,000 in annual revenue. Under that threshold, you are not required to register for GST/HST. However, if you voluntarily register, you must file returns even if your income is below $30,000. The research pack does not address this rule directly, so confirm your status with the CRA.

Filing your GST/HST online is a straightforward process once you have the right information and tools. Whether you choose the NETFILE form, My Business Account, or the TELEFILE system, meeting the electronic filing requirement ensures you stay compliant with the CRA. If you have questions or need assistance, consider contacting a tax preparation service in your area that specialises in GST/HST returns. Keeping up with your filing deadlines helps you avoid penalties and keeps your business finances in order.