GST/HST reporting period

Section 238 of the Excise Tax Act requires every registrant to file a return for each reporting period, and the period decides when the return falls due. In a Canadian business sale, ask about the seller’s last period before closing and the buyer’s first period afterwards. See how to check HST compliance when buying a business.

How the period is set

Section 245 of the Excise Tax Act makes a registrant’s reporting period its fiscal year, its fiscal month or its fiscal quarter, depending on conditions the section lists, and the fiscal quarter applies in all other cases. That is subject to s. 248(3) and ss. 251, 265 to 267 and 322.1, and the conditions include elections under ss. 246 to 248. The CRA says it assigns default reporting periods based on revenue amounts, and that a registrant may be able to change its period to file more frequently.

Deadlines and what to ask

The CRA says that for a monthly or quarterly period, the filing and payment deadline is one month after the period ends. The CRA adds that for most businesses that file annually, it is three months after fiscal year-end; s. 238(1) of the Act sets exceptions for listed financial institutions and some individuals. A related entry covers GST/HST registration. Ask these:

• Which reporting period does the seller’s CRA account show, and when does the last period before closing end?
• Have all returns for earlier periods been filed and paid?
• Will the buyer register separately, and what period will apply to it?