• CRA Update: Businesses: Are you affected by the change to GST/HST electronic filing requ: 2/21/2024

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    February 21, 2024
    Please see the following CRA information regarding reporting GST
    English version — La version française suit
    Your organization has been identified as a key stakeholder of the Canada Revenue Agency (CRA). We hope you will share the following information with your membership.
    Businesses: Are you affected by the change to GST/HST electronic filing requirements?
    For GST/HST reporting periods that begin in 2024, all GST/HST registrants, except for charities and selected financial institutions, are required to file returns electronically.
    The mandatory electronic filing threshold that was in place for GST/HST returns has been removed for reporting periods that begin on or after January 1, 2024, which means that electronic filing is now required for most businesses.
    To determine if you are required to file online and to learn more, visit: File the return – Complete and file a GST/HST return - Canada.ca.
    There are many benefits to filing online
    Electronic filing has many benefits over paper processing. It saves businesses time and money because recipients can confirm their tax information earlier and receive refunds and credits much faster. It’s also safer and more reliable because data flows seamlessly over secure networks. Paper processing, on the other hand, is vulnerable to more errors and disruptions.
    For both business and individual accounts, electronic filing offers:
    • convenience and ease
    • faster processing times
    • quicker communication for errors and discrepancies
    • earlier confirmations for tax information
    • faster refunds and credits
    Heads up: If this change applies to you, there will be penalties for not filing electronically
    Registrants who are required to file their GST/HST returns electronically and don’t are subject to the following penalty:
    • $100 for the first return that is not filed electronically
    • $250 for each subsequent return that is not filed electronically
    The penalty will apply even if the GST/HST return is a nil or a credit return. For GST/HST registrants that file annually, this will only apply to their 2024 returns that are due in 2025.
    For more information, visit GST/HST penalties and interest.
    GST/HST registrants that file monthly or quarterly – a note about waiving penalties
    To help GST/HST registrants that file monthly or quarterly and that were not previously required to file electronically, the CRA will be waiving penalties for failure to file GST/HST returns electronically for filing periods beginning on or after January 1, 2024 and before April 1, 2024 as per the following examples:
    Filing frequency Period Due Date Required to file electronically Penalties if filed by paper
    Monthly Jan. 01, 2024  to Jan. 31, 2024 Feb. 29, 2024 Yes Waived
    Monthly Mar. 15, 2024 to Apr. 14, 2024 May 14, 2024 Yes Waived
    Monthly Apr. 01, 2024 to Apr. 30, 2024 May 31, 2024 Yes Yes
    Quarterly Jan. 01, 2024  to Mar. 31, 2024 Apr. 30, 2024 Yes Waived
    Quarterly Mar. 01, 2024  to May 31, 2024 June 30, 2024 Yes Waived
    Quarterly Apr. 01, 2024  to June 30, 2024 July 31, 2024 Yes Yes
    Annual Jan. 01, 2024  to Dec. 31, 2024 Mar. 31, 2025 Yes Yes
    How to file electronically
    The Canada Revenue Agency (CRA) offers many digital services, such as My Business Account, mobile apps, and additional services for businesses to easily manage their tax affairs.
    Information on how to electronically file a GST/HST return is available at File a GST/HST return, rebate or election electronically.
    Reminder: As you make any kind of changes to your business, you might have questions and need information and guidance from the CRA. We can help. The CRA resources for small and medium businesses web page gives direct access to tax-related services and information for businesses. The Liaison Officer Service is also available to small business owners and self-employed individuals who need help understanding their tax obligations.
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