We 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.
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!