GST and HST Rules - Simple Video Explanation - Part 1
Ever wondered how the complex GST and HST rules work?
Mike Pinkus of ConnectCPA, Chartered Accountants provides a simplified explanation with examples to help you better understand the GST and HST landscape in Canada.
For information on registering for GST and HST in Canada, please visit the following link: GST and HST Registration
GST - Goods and Services Tax
HST - Harmonized Sales Tax
GST and HST vary by province in Canada. For a list of sales tax rates by province, please visit this link: GST/HST rates by province
ITC - Input Tax Credit
Sales Tax Collected (GST/HST) less ITC = Amount owing to the tax authorities (Canada Revenue Agency or CRA). If your ITC's are higher than your sales tax collected, a refund will be owed to you.
GST/HST filings are either Annual, Quarterly or Monthly. There are various rules relating to which category you fall into. Click HERE for more information.
Although this video clears up a lot about the basic GST and HST rules, there are still many variables that come into play before truly understanding the GST and HST landscape. Every situation can bring different implications that are not covered here and it is important to contact a professional if you are unsure about your GST/HST situation or if you would like to feel more comfortable having a professional look over you GST and HST circumstances.