Canada and Quebec Have Provided GST/HST and QST Relief
Canada has announced a series of measures to help businesses in response to the hardship caused by COVID-19, including an extension of GST/HST payments up to June 30 for a particular period.
GST/HST filing and payment deadlines vary depending on your GST/HST filing period; the usual deadlines are as follows:
|Filing Periods||Filing Deadline||Payment Deadline|
|Monthly and quarterly filers||One month after the end of the reporting period||One month after the end of the reporting period|
|Annually||Three months after fiscal year-end||Three months after fiscal year-end|
|Annually – individuals with a December 31 fiscal year-end and business income for income tax purposes||June 15||April 30|
Many businesses may be able to improve their current cash flow under the new relief measures, which allow GST/HST remittances and payments due on or after March 27, 2020 and before June 2020 to be deferred to June 30, 2020.
Although businesses should continue to file GST/HST returns on time if they are able to do so, Canada Revenue Agency (CRA) noted that it will not assess penalties for late filing if the above-specified GST/HST returns are filed by June 30, 2020.
Annual filers will also be able to defer, until June 30, 2020, the GST/HST instalments due on or after March 27, 2020 and before June 2020, according to CRA.
Revenu Quebec has also recently announced a similar QST relief measure. Revenu Quebec has extended its deadline to June 30, 2020 to remit QST amounts relating to QST returns due on or after March 27, 2020 and on or before June 1, 2020.
Similar to the GST/HST measures, businesses should continue to file their QST returns by the required due dates where possible. However, Revenu Quebec stated that it will not assess penalties for late-filed QST returns covered by the QST relieving period if these returns are filed by June 30, 2020.
We would recommend that businesses file their GST/HST and QST returns by the prescribed due dates where this is possible, as doing so should limit the regular four-year reassessment.