GST/HST instalments are advance payments toward an annual GST/HST return, not a payment plan for an existing debt. For a regular annual filer, quarterly instalments are required when net tax is $3,000 or more in both the previous and current fiscal years. An eligible rebate reducing the final balance below $3,000 does not remove the net-tax test. Monthly and quarterly return filers normally remit with their returns. CRA: instalment rules
How to calculate the quarterly amount
A common approach is one-quarter of the previous fiscal year’s net tax. For example, if last year’s net tax was $4,000 and this year’s net tax is also at least $3,000, four payments of $1,000 are the previous-year basis. If you expect a lower current-year net tax, CRA permits an estimate; if the instalments based on that estimate are too low, instalment interest can apply. CRA: calculate instalments
If a new annual registrant’s first fiscal year was shorter than a full year, annualize its net tax: divide by the number of registered days in that year and multiply by 365. If that result and the next year’s net tax are both at least $3,000, instalments are required in the next year. For example, $800 over 80 days annualizes to $3,650; one-quarter is $912.50. Special rules apply to selected listed financial institutions. CRA: first-time filers
When are payments due?
Instalments are due within one month after each fiscal quarter ends. For a December 31 year-end, the ordinary dates are April 30, July 31, October 31 and January 31 of the following year. If a date falls on a Saturday, Sunday or CRA-recognized public holiday, CRA’s next-business-day rule applies. Check the dates for your own fiscal year. CRA: when to pay
How to pay and report the instalments
Pay by an available CRA method, including online banking, My Payment or an eligible pre-authorized debit. If using a paper remittance voucher, CRA identifies personalized RC160 for interim payments; an online payment does not require the voucher. Identify the correct GST/HST RT account and payment purpose, and keep the receipt. CRA: how to pay instalments
At year-end, enter instalments paid for the fiscal year on line 110 of the annual return. If they are below the net tax, generally pay the difference; if they exceed it, a refund may be claimed. A quarterly instalment is not a substitute for filing the annual return. CRA: report instalments
If you cannot pay an existing debt, CRA describes a payment arrangement by phone or a series of pre-authorized debit payments in a CRA business account. That arrangement for arrears is separate from the instalment schedule. CRA: arrange payments Businesses whose GST/HST account is administered by Revenu Québec should follow its applicable guidance. CRA: remitting