How to Calculate Hst Remittance in Ontario

Calculating HST remittance in Ontario involves determining the Harmonized Sales Tax (HST) that must be remitted to the government based on your taxable sales. This guide explains the process, provides a calculator, and includes key formulas and examples.

What is HST Remittance in Ontario?

The Harmonized Sales Tax (HST) is a combined sales tax and Goods and Services Tax (GST) in Ontario. Businesses must remit HST to the government based on their taxable sales. HST remittance is the process of calculating and submitting this tax to the Canada Revenue Agency (CRA).

Businesses in Ontario are required to register for HST if their annual taxable sales exceed $30,000. The HST rate in Ontario is currently 13%.

Note: The HST rate may change. Always verify the current rate with the CRA before calculations.

How to Calculate HST Remittance

To calculate HST remittance, follow these steps:

Determine your total taxable sales for the period.
Calculate the HST owed by multiplying taxable sales by the HST rate (13%).
Subtract any HST credits or previous payments to determine the net HST remittance.
Submit the remittance to the CRA by the due date.

Use our interactive calculator to perform these calculations quickly and accurately.

Key Formulas

HST Owed = Taxable Sales × HST Rate

Where HST Rate is 13% (0.13) in Ontario.

Net HST Remittance = HST Owed - HST Credits - Previous Payments

These formulas are implemented in our calculator for quick and accurate results.

Example Calculation

Suppose a business has taxable sales of $50,000 and no HST credits or previous payments.

HST Owed = $50,000 × 0.13 = $6,500
Net HST Remittance = $6,500 - $0 - $0 = $6,500

The business must remit $6,500 in HST for the period.

FAQ

What is the current HST rate in Ontario?

The current HST rate in Ontario is 13%. This rate combines the Ontario sales tax and the federal GST.

When is HST remittance due?

HST remittance is typically due on the 15th day of the month following the reporting period. For example, if your reporting period is January 1 to January 31, the remittance is due by February 15.

What happens if I don't remit HST on time?

Failure to remit HST on time may result in penalties and interest charges. It's important to submit your remittance by the due date to avoid these consequences.

Can I pay HST in installments?

Yes, businesses can pay HST in installments if they have a valid reason and approval from the CRA. However, it's generally recommended to pay the full amount by the due date.