Tax Flash: GST/HST Details on Filing Returns

Under proposed changes, for reporting periods that end after June 2010, you will have to file your GST/HST returns electronically if any of the following apply:

• you have greater than $1.5 million in annual taxable supplies (including those of all your associates), (except for charities);
• you would be required to recapture input tax credits for the provincial part of the HST paid or payable on certain taxable supplies acquired in Ontario and British Columbia (i.e: GST/HST registrants with annual taxable supplies greater than $10 million (including those of all their associates) and certain financial institutions will be restricted from claiming ITCs for the provincial part of the HST paid or payable on:
  • energy, except where purchased by farms or used to produce goods for sale;
  • telecommunication services other than internet access or toll free numbers;
  • road vehicles weighing less than 3,000 kilograms (and parts and services) and (in Ontario only) fuel to power those vehicles; and
  • food, beverages and entertainment)
• you are a builder who makes sales of:
  • grandparented housing where the purchaser is not entitled to claim a GST/HST new housing rebate or new residential rental property rebate; or
  • housing that are subject to the HST where you purchased the housing on a grandparented basis; or
• you are a builder who is:
  • required to report a transitional tax adjustment amount; or
  • reporting a provincial transitional new housing rebate. 

There are four different electronic filing options, as follows:

• GST/HST NETFILE 
• GST/HST TELEFILE 
• GST/HST EDI filing and remitting 
• Internet File Transfer (GIFT) 

All registrants that are required to recapture ITCs for the provincial part of the HST on certain inputs  must file their GST/HST returns using GST/HST NETFILE only (i.e: GST/HST registrants with annual taxable supplies greater than $10 million (including those of all their associates) and certain financial institutions)

The following link to CRA also provides additional information:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/bspsbch/rtrns/rqrmnts/menu-eng.html