Hst Return Calculator Ontario

Ontario's Harmonized Sales Tax (HST) is a consumption tax that replaces the previous provincial sales tax (PST) and goods and services tax (GST). As a business owner or self-employed individual in Ontario, you may be eligible to claim an HST return if you've paid more in HST than you're entitled to. This calculator helps you determine your potential HST refund.

How to Use This Calculator

To calculate your potential HST return in Ontario, follow these steps:

Enter your total HST paid during the year
Enter your total taxable sales during the year
Enter your HST refund from previous years (if applicable)
Click "Calculate" to see your potential refund

The calculator will show you your estimated HST refund amount based on the information you provide. Remember that this is an estimate and your actual refund may vary.

Formula Used

The HST refund calculation in Ontario is based on the following formula:

HST Refund = Total HST Paid - (Taxable Sales × HST Rate) - Previous Year's Refund

Where:

Total HST Paid - The total amount of HST you've paid during the year
Taxable Sales - Your total sales that are subject to HST
HST Rate - The current HST rate in Ontario (13%)
Previous Year's Refund - Any HST refund you received in the previous year

If the result is positive, you're eligible for an HST refund. If the result is negative, you owe additional HST to the government.

Worked Example

Let's look at an example to understand how the HST return calculator works.

Scenario: A small business in Ontario has the following details for the year:

Total HST paid: $15,000
Total taxable sales: $120,000
Previous year's refund: $2,000

Calculation:

HST Refund = $15,000 - ($120,000 × 0.13) - $2,000

= $15,000 - $15,600 - $2,000

= -$2,600

Interpretation: The negative result means the business owes an additional $2,600 in HST to the government. The business should adjust its HST payments accordingly.

Frequently Asked Questions

What is the current HST rate in Ontario?: The current HST rate in Ontario is 13%. This rate applies to most goods and services sold in the province.
How do I claim my HST refund?: To claim your HST refund, you'll need to file a return with the Canada Revenue Agency (CRA). You can do this online, by mail, or by phone. Make sure to include all necessary documentation to support your claim.
Can I claim HST refunds for previous years?: Yes, you can claim HST refunds for previous years if you meet the eligibility criteria. The CRA has specific rules about how far back you can claim refunds.
What happens if I owe additional HST?: If the calculator shows you owe additional HST, you'll need to pay the amount to the CRA. You can do this through your regular tax payments or by making a separate payment.
Is there a deadline for claiming HST refunds?: Yes, there are deadlines for claiming HST refunds. Generally, you should file your return within 6 months of the end of the year for which you're claiming the refund. Check with the CRA for specific deadlines.