FPZ558.C
Calculation of instalments - GT/HST and QST
Who has to make instalment payments?
For reporting periods beginning after 2007, if you are an annual filer and your net tax in a fiscal year is $3,000 or more, you have to make equal quarterly instalment payments in the following fiscal year. You can make your payments electronically, at your financial institution or by mail.
The GST/HST return you file at the end of the year will reconcile your instalments with the amount of net tax you actually owe. Include any payments owing to balance your instalments with the total net tax for your reporting period.
Calculating instalment payments
If you file your returns annually, you must remit the taxes you collect in four quaterly instalments using the form sent to you for each installment. To calculate your instalments use form FPZ-558.C Calculation of Instalments - GST/HST and QST.
Usually, the amount of each equal payment will be one quarter of your previous year's net tax. If you expect that this year's net tax will be less than last year's you may also base your equal quarterly instalment payments on an estimate of your current year's net tax. You will have to pay interest on the difference if your estimate is less than the amount you actually owe at the end of the year.
You will not be charged penalty and interest on any balance owing at the end of the year if:
- you based your instalments on the previous year's net tax;
- you paid those instalments in full and on time; and
- the balance is remitted by the due date.
If you realize at any time during the fiscal year that you paid less than your required instalment payment or that you did not pay an instalment on time, you can reduce or eliminate your instalment interest by overpaying your next instalment payment or by paying it early.
Instalments due date
Installment payments aredie within one month after the end of each of your fiscal quarters. As an example, if your fiscal year end is December 31st, your instalment payments are as follows:
|
Fiscal Quarters
|
Instalment due dates
|
| January 1 - March 31 | April 30 |
| April 1 - June 30 | July 31 |
| July 1 - September 30 | October 31 |
| October 1 - December 31 | January 31 |
Useful links:
RC4022 General Information for GST/HST RegistrantsGeneral Information Concerning the QST and the GST/HST IN-203-V