Social Benefits » The Canadian Goods And Services / Harmonized Sales Tax (GST/HST) Guide

The Canadian Goods And Services / Harmonized Sales Tax (GST/HST) Guide

By IntFormalities
Published on July 21, 2023
Estimated reading time: 4 minutes

The price of goods and services is higher now than ever. The recent Covid pandemic and the economic fallout from the once-in-a-hundred-year event have significantly increased the cost of most goods and services. As a result, the financial burden has become a strain for many Canadians. People on modest to middle incomes feel the pressure even more acutely. If you are affected, you may want to seek out the various grants and benefits the Canadian government offers. One of the things you may want to explore is the Goods and Services Harmonized Sales Tax (GST/HST). In this article, we’ll look at this tax refund in detail. 

A Guide To The Goods And Services / Harmonized Sales Tax (GST/HST)

The Goods And Services / Harmonized Sales Tax (GST/HST): What Is It?

If you are purchasing goods, services and other commodities in Canada, you are subject to tax. This tax is known as the Harmonized Sales Tax (HST) and the Goods and Services Tax (GST). It applies to goods and services such as real estate, vehicles, gasoline, clothing, etc. These taxes are added to the final price of items purchased by consumers. 

All businesses in Canada, no matter how small, must collect GST and HST. For people on smaller to mid-size salaries, it is possible to claim back the goods and services and the harmonized sales tax when filing their taxes.

GST/HST Tax Credit: Eligibility

You are eligible for the GST/HST credit if you are resident in Canada the month before and the month when the Canada Revenue Agency (CRA) issues the payment. 

Additionally, you must be at least 19 years of age. Those below 19 are eligible if they have a common law partner/spouse or are a parent and live with their child

People who are parents to a child can claim the Goods And Services / Harmonized Sales Tax credit on behalf of their youngster. 

How To Apply For The HST/GST Refund?

To apply, you simply file your tax returns (even if you earned nothing). The Canada Revenue Agency will decide your eligibility and make a payment through your bank account every quarter. You can file your tax return through this link here.

People Who Have Become Canadian Residents Recently

Those with children who recently became Canadian residents will need to fill in Form RC66. Through the application, you can apply for all relevant Canada Child Benefits (CCB) which will include these tax refunds. 

People without children must complete the Climate Action Incentive Payment Application and the RC66 Form.

Claiming The GST/HST Payment For Your Children

People who have already made arrangements to obtain the CCB are most likely already receiving the tax refund. If you have yet to apply for the Canadian Child Benefit, you can sign into “My Account” and make an application for the benefit. “My Account” is the Canadian government online portal that enables people to manage their tax and benefit applications.  

Payment Considerations

The amount you will receive will vary and is based on factors such as income levels, the number of children, marital status, and the length of time you’ve been a Canadian resident. 

The income of an individual is the most important factor. 

For 2023/2024, you will not receive any payment if your maximum income threshold exceeds the amount shown below:

Individual Circumstances Net income
A single personCan$52,255
A single person who has one childCan$58,755
A single person with two childrenCan$62,175
A single person with three childrenCan$65,595
A single person with four childrenCan$69,015
Common law / Married couple without any childrenCan$55,335
Common law / Married couple with one childCan$58,755
Common law / Married couple with two childrenCan$62,175
Common law / Married couple with three childrenCan$65,595
Common law / Married couple with four childrenCan$69,015

How Much Will You Receive?

The payments are based on the tax returns from the previous year. Your 2023/2024 payments will be from the tax information submitted in 2022. The maximum you could receive will be the following:

  •  Can$496 for a single person,
  •  Can$650 if you have a spouse or a partner,
  •  Can$171 for each child who is less than 19 years of age. 

Use this Government of Canada calculator to find out your exact payment.

Payment Dates

You can expect to receive your payment every quarter through the bank. Payments are made on the 5th of the following months: January, April, July, and October. Contact the Canada Revenue Agency if you fail to receive a payment. 

Every Little Helps

Like most parts of the world, Canada is not enjoying the best of times economically. Taking advantage of all the benefits and credits you are entitled to in these trying times makes a lot of sense. If you qualify for the Goods And Services / Harmonized Sales Tax credit, fill in the appropriate forms to ensure you receive your full entitlement.

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