GST filing in Lethbridge
Sound familiar?
- You’re not sure whether you need to be registered
- You charged GST but spent it before the return was due
- A return is late, or you’ve never filed one
- You don’t know which receipts count for input tax credits
- You’ve heard about PST and HST and aren’t sure what applies in Alberta
- Your GST payable account in QuickBooks doesn’t match your returns
GST in Alberta, in plain English
Alberta keeps it simple. There’s no provincial sales tax and no HST, only the 5% federal Goods and Services Tax. If you’re registered, you charge 5% GST on taxable sales, and you can claim back the GST you paid on business purchases. Those claims are called input tax credits, or ITCs.
I prepare and file GST returns. If your business is also registered in a province that charges PST, I prepare and file your PST returns for that province too. That’s only for provinces that have the tax; Alberta never does.
Your GST return is the difference between the two. If you collected more than you paid, you send the CRA the balance. If you paid more, the CRA sends you a refund. For a longer walkthrough with a worked example, read my guide to GST in Alberta.
Do you need to register?
You’re a small supplier, and don’t have to register, as long as your taxable sales stay at $30,000 or less in any single calendar quarter and over the last four consecutive quarters. Go over $30,000 in a single quarter and you need to register within 29 days.
You can also register voluntarily before you hit the threshold. Some businesses do, so they can claim input tax credits on startup costs. Whether that makes sense for you is worth talking through when you get in touch.
How often you file, and when it’s due
Your reporting period depends on your annual taxable sales. Under $1.5 million, the default is annual, though you can choose to file quarterly or monthly. Between $1.5 million and $6 million it’s quarterly, and over $6 million it’s monthly.
- Monthly and quarterly filers: file and pay one month after the period ends
- Most annual filers: three months after your fiscal year-end
- Sole proprietors with a December 31 year-end who file annually: pay by April 30, file by June 15
- Annual filers whose net tax for the previous fiscal year was $3,000 or more may need to pay quarterly instalments
- Due dates on a weekend or holiday move to the next business day
Input tax credits and the receipts behind them
Every ITC you claim has to be backed by a document you have before you file. The CRA’s requirements depend on the amount: under $100 you need the supplier’s name, the date and the total; from $100 to $499.99 you also need the GST charged and the supplier’s GST number; at $500 and up you need your name, a description and the payment terms as well.
That’s why GST filing and good monthly bookkeeping go together. When receipts are captured and matched every month, the return is quick and every credit is supported.
If a return is late
A late GST return carries a penalty of 1% of the amount owing, plus 0.25% of that amount for each full month it’s late, for up to 12 months. If you owe nothing or are due a refund, there’s no late-filing penalty, but the return still needs filing. Most registrants now have to file electronically.
If you’re behind on more than one return, I’ll start with catch-up bookkeeping so each return is built on correct numbers, then file them in order.
What’s included
- GST reconciliation
- the GST you charged and paid, matched to your books
- Input tax credit review
- every credit claimed, every receipt behind it on file
- Return preparation & filing
- your return completed and filed electronically
- Deadline tracking
- your due dates on my calendar, not just yours
- Instalment reminders
- a heads-up if quarterly instalments apply to you
How GST filing works
Step 1
Check where you stand
We confirm whether you’re registered, your reporting period and your due dates, and catch up any missed returns.
Step 2
Reconcile each period
I match the GST you collected and paid to your books and make sure every credit is supported.
Step 3
File and confirm
I prepare and file the return and tell you what’s owing (or coming back), and when.
The free review of your books costs nothing. Tell me where things stand.
GST for southern Alberta businesses
Because the registration threshold is measured quarter by quarter, seasonal businesses can cross it faster than they expect. Picture a food vendor whose sales pass $30,000 in the quarter that includes Taber’s late-August Cornfest, or a hauler whose busiest quarter comes during the fall sugar beet campaign. Either one would need to register, even if the rest of the year is quiet.
Contractors working across several towns, and trades that bill large jobs, often see GST swing from one period to the next. Setting GST aside as you collect it, and checking the balance before each due date, keeps those returns from becoming a surprise. If it helps your cash flow, filing more often than your required period is an option worth discussing.
GST filing, from $50/hour
GST filing is charged by the hour, from $50/hour, and added to your bookkeeping quote. The time depends on how often you file and how busy your books are. Every quote is confirmed after a free review of your books. Catching up past returns is quoted separately.
How pricing worksKeep exploring
Questions about GST
Do I charge GST in Alberta?
If you’re registered, yes: 5% GST on taxable sales. Alberta has no provincial sales tax and no HST, so GST is the only sales tax you deal with.
When do I have to register for GST?
Once your taxable sales go over $30,000 in a single calendar quarter, or over the last four consecutive quarters, you’re no longer a small supplier and need to register (within 29 days if you crossed it in one quarter). You can also register voluntarily before that.
When is my GST return due?
Monthly and quarterly filers file and pay one month after the period ends. Most annual filers have three months after their fiscal year-end. Sole proprietors with a December 31 year-end who file annually pay by April 30 and file by June 15.
What happens if I file my GST return late?
If you owe GST, there’s a penalty of 1% of the amount owing plus 0.25% of that for each full month late, for up to 12 months. There’s no late-filing penalty if you owe nothing or are due a refund, but the return still has to be filed.
What receipts do I need to claim input tax credits?
It depends on the amount. Under $100: supplier name, date and total. $100 to $499.99: add the GST charged and the supplier’s GST number. $500 and over: add your name, a description of the purchase and the payment terms.
Should I use the quick method?
The quick method is a simplified way to calculate GST that some smaller businesses can use. Whether it suits you depends on your business, so that’s a question for the CRA or your tax preparer. Either way, I’ll make sure your books support the method you use.
Let’s get your books level.
Tell me where things stand, even if it’s messy, and I’ll tell you honestly what it’ll take to catch up and keep it that way. Every quote is confirmed after a free review of your books.
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