“Death, taxes, and childbirth! There’s never any convenient time for any of them.”
― Margaret Mitchell, Gone with the Wind
The quote by Margaret Mitchell essentially describes the idea that there is no right time to pay taxes, therefore it is important to just pay it! Apart from the income tax that we pay, we also pay taxes on things that we consume everyday like groceries, fuel, and even on services we use.
These taxes in Canada are called Good and Services Tax (GST) or Harmonized Sales Tax (HST). They are levied on most of the goods and services that you buy. While it can create a burden on your pockets, the Canadian government does give it back in terms of credit every quarter. But do you know these GST payment dates or if are you eligible to get these credits or not? Well, read on as we have got you covered.
How Much are the GST/HST Rates?
Some provinces in Canada charge GST separately while Ontario, Prince Edward Island, New Brunswick, Nova Scotia, and Newfoundland and Labrador have included GST in the provincial sales tax regime which forms HST.
The GST rate is 5 percent, while the rate for HST including GST in these provinces is as stated below.
- Ontario: 13 percent
- Prince Edward Island: 15 percent
- New Brunswick: 15 percent
- Nova Scotia: 15 percent
- Newfoundland and Labrador: 15 percent
In the following provinces, GST is charged separately and the rest is known as Provincial Sales Tax (PST).
- Quebec: 9.975 percent
- Manitoba: 7 percent
- British Columbia: 7 percent
- Saskatchewan: 6 percent
In the below provinces and the three territories, no province tax is applied, all you have to pay is GST at 5 percent.
- Northwest Territories
What is GST/HST Credit?
As stated before is a credit provided to individuals and families having low or modest income to help them off the burden of paying taxes. The credit is tax free and is given every quarter.
This also considers payments due from provincial and territorial programs. Though to get this credit, you need to file your taxes. If you are filing your taxes on time, you get the amount of credit in your linked bank account automatically on the GST payment dates.
HST or GST Payment Dates in 2021
The HST or GST credit payment dates for the year 2021 are as follows. It would be paid by the Canada Revenue Agency (CRA).
January 5, 2021
April 1, 2021
July 5, 2021
October 5, 2021
Are You Eligible to Get Credit on HST/GST Payment Dates?
You have to meet any of the following eligibility to get the credit every quarter on HST/GST payments.
- You need to be 19 years or older than that.
- If you have or had a common-law partner/spouse.
- You are or were a parent and live or were living with your child.
Also, you have to be a resident of Canada for the purpose of filing income tax and along with that, you require a Social Insurance Number (SIN). The reason behind that is the fact that it becomes useful for the government to check your eligibility for the credit.
How Can You Apply for the GST or HST Credit?
When you file your tax return and annual benefits, CRA looks after the eligibility automatically for the GST or HST credit. For that, there is no minimum income threshold for you to qualify.
Though, if you have just come to Canada, the below process would help you get the credit for GST/HST.
- For the people not having kids, the form to be used is Form RC151.
- And for people having kids, the form that needs to be used is Form RC66.
- After filling the form submit the same to your province’s CRA office.
If you are applying for the Canada Child Benefit, the GST or HST credit apply automatically for your kids.
But if in any case, that hasn’t been included in your household credit, take the following steps.
You need to apply for child benefits by using the CRA My Account. Here, you need to provide details about your child like name, sex, birth date, and birthplace.
Apart from this, you can also submit Form RC66 to CRA via mail.
The Income Limit to Get the Credit on GST Payment Dates
Your GST or HST credit gets calculated based on your previous year’s income filing. For example, to calculate your 2021 GST/HST credit, your income tax filing of 2019-20 would be considered.
If you are a single individual, you may get credit up to $451. While for married couples, the amount is up to $592, and if you have a child under the age of 19, you get another $155.
Apart from that, there is a maximum income threshold, if your income increases from that, you are not eligible for GST or HST credits.
What are the Other Combined Benefits?
Along with GST/HST Credits, provinces run other programs to give benefits to people and live a comfortable lifestyle. CRA then combines the province-based benefits with GST/HST credits. The list of the program is as follows.
- Ontario Trillium benefit
- Ontario sales tax credit
- New Brunswick harmonized sales tax credit
- BC climate action tax credit
- Nova Scotia affordable living tax credit
- Saskatchewan low-income tax credit
- Prince Edward Island sales tax credit
- Newfoundland and Labrador senior’s benefit
- Newfoundland and Labrador income supplement
Here, note that the Ontario Trillium Benefit composites three credits – Ontario energy and property tax credit, Ontario sales tax credit, and the Northern Ontario energy credit.
Direct Credit Transfer to Your Bank Account
The CRA provides the facility of depositing money directly to your registered bank account. The process makes the credit transfer faster when the time GST payment dates arrive. It smoothens the process and helps you get your credit on time in any kind of emergencies.
If you are currently receiving any of the following
- Provincial and territorial payments
- Income tax refund
- GST or HST sales tax credit
- Canada workers benefit
- Canada child benefit or similar benefits
- Deemed overpayment of tax
from the Canada Revenue Agency, and you hold a Canadian bank account, you become eligible for direct deposit registration.
You can join the direct deposit facility by,
Online – Though My Account
Using Mobile Apps – By signing up for Direct Deposit or changing your details via financial institutions
By Phone- You have the option to call the CRA on 1-800-959-8281. Though you would need the following information ready.
- Full name
- Current address and postal code
- Social insurance number
- Date of birth
- The most recent income tax and benefit returns’ details
- Information on your latest payments from CRA.
- Your Bank details including your account number, three-digit financial institution number, and five-digit transit number.
You pay taxes on things, and when you get the opportunity and eligibility to get the credit, you must! Keep yourself aware of the benefits you are qualified for and keep in mind the payment dates! Even a small credit, when compounded can yearn value.