Preparing for the next GST deadline…

to doWe are busy in the office this month finishing all the bookkeeping for our regular clients and preparing their GST returns before the October 31st deadline.  If you are a quarterly filer and your quarter falls on July 1 – Sept 30, you also have your return and remittance due by October 31st.

GST returns are fairly simple to complete if you have been keeping up with your bookkeeping records.  It is VERY important to be sure you have every transaction in the past quarter recorded to ensure you are reporting all GST activity.

The GST return is submitted to the Canada Revenue Agency to report the GST you collected on sales and to claim the Input Tax Credits (ITCs) you acquired during this quarter.  ITCs are simply the GST amounts you paid out in expenses during this period.GST return

To calculate your GST:

1.     determine the total sales your business received.  Do not include the GST you added to this number – simply determine the sales before GST.  Record this amount on line 102 of the GST return.

2.     determine the amount of GST you collected on those sales and record that on line 105

3.     Determine the amount of GST you paid out with your expenses.  You will not need to total all of your expenses, but rather just the GST you paid.

4.   Subtract:   line 105 – line 108.  If your answer is negative then you will be receiving a refund and that amount is to be recorded in the “refund claimed” box.  However, if your answer is positive, then that is the amount you owe to CRA and that amount is recorded in the “amount owing” box.  If you file your return online, the website will compute the refund/payable for you.

5.   If you owe, use the remittance form that came in your GST return envelope to pay your remittance at the bank.

If you have any questions, please feel free to contact me and I will do my best to give you a hand 🙂  Good luck!

 

 

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About Cougar Ridge Bookkeeping

We know that to be successful in business, keeping good records is vital. We also know that operating a successful business takes hours of dedication and hard work. For many, it means that the bookkeeping gets put on the "to-do list". We are here to help you!
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2 Responses to Preparing for the next GST deadline…

  1. Jenna and Shelby Doll says:

    Hey there Karen,

    I saw this email you sent out, and I wasn’t sure what it meant, so I contacted Ron (my accountant), and he said this:

     In regards to the GST, you should be receiving information from CRA regarding your filing requirements…typically the deadline is calendar year GST is June 15th of the subsequent year but you should clarify this with your bookkeeper.   What I’m wondering is if there’s something I am supposed to be doing for that October 31st deadline you were talking about in your post. 

    Hopefully I will get this all figured out soon so I won’t have to ask all these questions!!

    Thanks Karen, 

    Amanda 🙂

    The Doll Sisters dollsisters@yahoo.ca

    http://www.dollsisters.com http://www.facebook.com/thedollsisters http://www.twitter.com/thedollsisters

    • Hi Amanda,

      Every business is assigned a reporting period by CRA when they register for a business number. For Sole Proprietors (such as yourself) often the reporting period is for a full year with a deadline of June 30. Keep in mind that if you owe GST for the year, you must pay by April 30 though.

      For incorporated businesses and some sole proprietors they may have chosen a quarterly reporting period or CRA may have assigned it to them. In that case, bookkeeping and GST reporting must be done each quarter with a deadline of the last day of the following month. Although not all, many businesses in our office that are quarterly filers and remitters had a Sept 30 cut off with reports and payments due by Oct 31.

      That is the deadline I was referring to in the blog. If you are a yearly remitted then you have no worries 😄 Your GST will not be due until June.

      Thank you for your question!

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