As we navigate through 2025, understanding the ins and outs of GST (Goods and Services Tax) and HST (Harmonized Sales Tax) is essential for businesses and self-employed individuals across Canada. Whether you’re running a well-established company or just starting out, keeping up with GST/HST payment deadlines, tax rates, and filing requirements can save you from penalties and ensure smooth financial operations.
This guide breaks down everything you need to know about GST/HST in 2025, including who needs to pay, key deadlines, payment methods, and strategies to stay compliant with the Canada Revenue Agency (CRA).
Mastering GST & HST Payments in 2025
GST vs. HST: What’s the Difference?
GST (Goods and Services Tax): A 5% federal tax applied to most goods and services across Canada.
HST (Harmonized Sales Tax): A combined federal and provincial tax, applicable in certain provinces where both are merged into a single rate.
HST Rates by Province
Ontario: 13%
New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island: 15%
Provinces like Alberta, British Columbia, Saskatchewan, Manitoba, and Quebec charge GST separately along with their respective provincial sales tax (PST).
Who Needs to Pay GST/HST in 2025?
You are required to register, collect, and remit GST/HST if:
✔️ You own a business or are self-employed and generate more than $30,000 in revenue over a 12-month period.
✔️ You sell taxable goods or services in Canada.
✔️ You are a non-resident entity providing taxable supplies in Canada.
If your earnings are below $30,000, you are classified as a small supplier and are not obligated to register. However, voluntary registration can allow you to claim Input Tax Credits (ITCs) and recover GST/HST paid on business expenses.
GST/HST Payment Deadlines for 2025
Your GST/HST remittance schedule is determined by your annual revenue:
📌 Monthly Filers (Revenue above $6 million): Payment due on the last day of the following month.
➡️ Example: January 2025 GST/HST is due by February 28, 2025.
📌 Quarterly Filers (Revenue between $1.5 million – $6 million): Payment due on the last day of the month after the quarter ends.
➡️ Example: Q1 (Jan–Mar 2025) is due by April 30, 2025.
📌 Annual Filers (Revenue below $1.5 million): Payment due three months after fiscal year-end.
➡️ Example: If your fiscal year ends December 31, 2025, the payment is due by March 31, 2026.
🚨 Late Payments = Penalties! Missing deadlines results in late fees and interest charges, so mark your calendar.
How to Calculate GST/HST Payments
1️⃣ Identify Your Total Taxable Sales – Sum up all revenue from goods/services subject to GST/HST.
2️⃣ Apply the Correct Tax Rate – Use 5% GST or the specific HST rate based on your province.
3️⃣ Deduct Input Tax Credits (ITCs) – Subtract the GST/HST paid on business purchases (e.g., supplies, equipment).
4️⃣ Remit the Net Amount – Submit the final tax balance to the CRA.
GST/HST Payment Methods in 2025
CRA offers multiple options for paying GST/HST:
✔️ Online Banking – Add CRA GST/HST-Payment as a payee through your bank.
✔️ CRA My Business Account – Make direct payments via the online portal.
✔️ Pre-Authorized Debit (PAD) – Schedule automatic deductions from your account.
✔️ Credit Card – Use third-party services (note: processing fees apply).
✔️ In-Person at Your Bank – Pay physically at your financial institution.
✔️ By Mail – Send a cheque or money order to the CRA before the deadline.
Avoiding GST/HST Penalties
❌ Late filing: CRA charges 1% of the balance owing, plus 0.25% for each month overdue (up to 12 months).
❌ Repeated late payments: Risk higher penalties for non-compliance.
❌ Interest charges: Compounded daily on overdue amounts.
✅ Tip: Even if you can’t pay the full amount, still file on time! CRA offers payment plans for businesses facing financial hardships.
Smart Strategies to Manage GST/HST in 2025
🔹 Keep Digital Records – Use software like QuickBooks, FreshBooks, or Xero to track sales, expenses, and taxes.
🔹 Automate Your Tax Payments – Set up pre-authorized debit (PAD) to avoid late fees.
🔹 Monitor CRA Updates – Stay informed about rate changes or new tax policies.
🔹 Consult a Tax Professional – An accountant can optimize your tax strategy and ensure compliance.
Final Thoughts: Stay Proactive with GST/HST
GST/HST compliance is more than just a tax requirement—it’s a crucial part of financial planning for businesses in Canada. By staying organized, meeting deadlines, and leveraging available tools, you can simplify the process and avoid unnecessary penalties.
💡 Pro Tip: Treat GST/HST like a business expense—set aside collected taxes in a separate account to ensure you’re always prepared for payments!
Need more details? Visit the CRA website or consult a tax expert today.
