What Is HST?

What HST means

HST, the harmonized sales tax, is the sales tax in Ontario. The rate is 13 percent, made of a 5 percent federal part and an 8 percent provincial part. A GST/HST return reports the tax you collected and the input tax credits you can claim.

Where to find HST

You see it on invoices that say HST, and on the GST/HST return the CRA assigns as monthly, quarterly or annual. A small supplier whose HST-taxable supplies stay at or under $30,000 across a calendar quarter and the previous four quarters generally does not have to register. Crossing that line means registering within 29 days of the sale that went over.

Why HST matters

The firm prepares the return and can register the account. Input tax credits need an invoice. A number with no bill is not a credit.

Keeping HST records

The HST you collect and the input tax credits you claim both need paper behind them. Keep invoices that show HST, and the GST/HST return the CRA assigned. If the CRA writes about a period, bring the letter, the invoices and the return for that period to the Scarborough office, and the firm will go through them with you. The firm quotes a six-year retention period for tax records, counted from the end of the last tax year they relate to.

Work with the Scarborough office

Kennedy Tax & Accounting Inc. prepares the return from its only office in Scarborough, near Kennedy Station. You can visit or send the slips. English, Bengali and Tamil are spoken. A CPA has led the firm since 2010. A simple personal return starts at $49.99 + HST. Other work is quoted first.

The personal return is prepared on the personal income tax page. A corporation uses the T2 service. Books are on the bookkeeping page.