If you plan to start a new business, you need to get acquainted with the sales taxes you’ll have to pay either as GST, PST, or HST. While many parts of Canada have introduced GST (Goods and Services Tax), some provinces haven’t agreed to merge their Provincial Sales Tax (PST) regimes with GST. As a result, business owners from there have to pay both taxes. The provinces that did combine GST and PST require business owners to pay a tax called HST (Harmonized Sales Tax).
What do these taxes mean?
GST: It is a five percent tax on most goods and services sold within Canada, and the federal government levies it.
PST: It is a sales tax that differs in every Canadian province.
HST: It is a combined tax that includes GST and PST charges.
Once you understand which taxes apply to your company, you need to accurately calculate the amount you owe the government to avoid penalties. If you charge GST or HST on the products and services you provide, then you can also claim Input Tax Credits (ITC) on business expenses. However, these expenses need to be related to running your business. By calculating your taxes correctly, ITCs will enable you to take back what you pay in the form of taxes.
Get your taxes calculated accurately for submission.
Overpaying and underpaying taxes is not an uncommon practice, especially when businesses take their bookkeeping and tax accounting into their own hands. Unfortunately, juggling your sales taxes and your business activities can get really challenging. It can result in miscalculations, payment delays, defaults, penalties, and a bad reputation with the CRA (Canada Revenue Agency).
To get your GST or HST calculated correctly, reach out to the tax preparation experts at Peter’s Accounting & Bookkeeping. We are a leading provider of accounting and bookkeeping services in Ancaster, Ontario. We can easily calculate and net file all GST and HST amounts owing to the government or owing to you.
We’ve been around for over ten years and have helped numerous clients stay on top of their needs when it comes to taxes. We focus on serving small and medium-sized business owners so they can concentrate on building their businesses.
Peter’s Accounting charge minimal fees when you choose our full bookkeeping and business services, and our quarterly remittance services cost around $100. To book an appointment to receive our GST and HST calculation and submission service, call us at (905) 572-7675.