The date of the invoice will determine when you need to report and remit (pay) the GST/HST you charge to customers.
At the time of GST/HST reporting, you’re required to compile all invoices with the invoice dates that are within the reporting period.
Reporting period is stated on your GST/HST return and it can be monthly, quarterly or annually reporting.
GST/HST that you charged on your invoice, whether or not you have received payment, will need to be reported on your GST/HST return within the reporting period.
For example, Canada Revenue Agency (CRA) determined your business to file quarterly GST/HST return. For the quarter 1 reporting period, between January to March, one of your invoices to customer was dated on March 15 and this customer didn’t pay this invoice until June 20 due to a late payment.
The GST payable on this invoice is $50 for a $1,000.00 purchase. This is calculated by $1,000 x 5% GST tax rate = $50.00.
Since this invoice is dated within the Quarter 1 reporting period, the uncollected $50.00 GST payable is still need to be report on your quarter 1 GST/HST return.
The GST/HST return filing and remittance deadline for Quarter 1 report is April 30, which is one month after the end of the reporting period.
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