A nil return is a GST/HST return with zero in every applicable field. If you remain registered, a return is due for each assigned period even when you had no business transactions or income. CRA: reporting requirements
No sales does not always mean a nil return
Before choosing the nil option, check sales and other revenue, tax collected or collectible, eligible input tax credits (ITCs), adjustments, instalments and rebates. A business with no sales may still have eligible ITCs for business purchases; a $0 balance can also result from equal tax and credits. Both situations require reporting the actual amounts, rather than declaring every field zero. CRA: which return to use
For example, no sales but $50 of eligible documented ITCs means the return has a reportable credit. No sales, tax, ITCs, adjustments, instalments or rebates is a nil period.
How to file a nil return
- Check the correct GST/HST account, reporting period and due date.
- Reconcile the period’s records and confirm every applicable amount is zero.
- Use an available CRA electronic filing method and select its nil option only if all fields are zero; review the period and submit.
- Keep the filing confirmation and supporting records.
For periods beginning on or after January 1, 2024, most registrants must file electronically, including for a nil return; charities and selected listed financial institutions are excepted and CRA may grant an exemption case by case. CRA says a paper nil return cannot be filed at a financial institution. CRA: how to file, CRA: paper filing
Check your own assigned period: monthly and quarterly filers generally file one month after period end; most annual filers generally have three months, with different rules for certain annual individuals. A closing account still needs a final return. CRA: deadlines