See the sourced 2026 Ontario tax guide: rates, limits and deadlines →
What to take away
- You charge tax from your effective date of registration, which may be earlier than the day you actually register.
- New registrants are generally assigned an annual reporting period, and every period needs a return, even a quiet one.
- Credits for costs from before you registered follow specific rules, so sort your purchases by date before you file.
Start with your effective date
Your first return is shaped by your effective date of registration. If you were required to register, that date is generally the day you stopped being a small supplier, and you must start charging GST/HST on your taxable supplies from that date. The CRA gives you 29 days from the effective date to register, but the tax you owe runs from the effective date, not the registration date.
If you register voluntarily while still a small supplier, your effective date is usually the day you request the account and may be up to 30 days earlier. If you were required to register, or were already charging tax, for more than 30 days before registering, the CRA has a separate request process for backdating. Write the effective date on a note in your books, because everything on the first return is measured against it.
Your reporting period and due date
When you register, the CRA generally assigns an annual reporting period, although you can choose to report monthly or quarterly through the “File an election” service in My Business Account or on Form GST20. If you expect to claim refunds regularly, ask your accountant whether a more frequent period would suit your cash planning. Your reporting periods and due dates are listed in My Business Account.
Annual filers generally have three months after the end of their fiscal year to file and pay. Monthly and quarterly filers have one month after the period ends. If you are a sole proprietor with an annual reporting period and a calendar-year fiscal year, the payment is generally due April 30 and the return June 15. For illustration, a corporation with a December 31 fiscal year-end would generally file by March 31. If a due date falls on a weekend or holiday, the next business day applies.
Costs from before you registered
Input tax credits recover tax you paid on business purchases, but timing matters for new registrants. If you were a small supplier immediately before registering, the CRA treats property you held for your commercial activities, such as equipment, inventory or other capital property, as bought at the moment you registered. You may be able to claim a credit on the tax in that property.
You can also claim credit on tax payable before registration for services you receive after you register, and on prepaid rent that covers the period after registration. You cannot claim tax on services supplied to you before you registered, or on rent for a period before registration, even if you paid the bill afterwards. In the CRA’s example, a registrant who prepaid January to March rent and registered on March 1 can claim credit only for March’s rent. Sort your receipts by date and keep invoices for credits you plan to claim.
Get your numbers ready
Before you open the return, make sure your sales records are complete for the period. You owe tax on the earlier of the day you receive payment and the day payment is due, which the CRA usually treats as the invoice date. So an unpaid invoice dated within the period is normally reported on that period’s return.
Check that your books show tax collected separately from sales and credits separately from expenses. If the books are behind, sort that out first, because a rushed first return is hard to correct without adjustments. The tax collected is not spending money, as the earlier article on cash planning explains. If you are considering the quick method, the election has to be made before you use it, so raise it with your accountant before the first return is prepared.
Filing and paying online
For reporting periods beginning on or after January 1, 2024, electronic filing is required for all registrants except selected listed financial institutions and most charities. Options include the File a return service in My Business Account, which needs no access code, or GST/HST NETFILE with the four-digit access code the CRA provides. Payment can be made through online banking or My Payment.
File a return for every period, even a quiet one with no sales. Skipping a nil return can delay refunds and lead to a failure-to-file notice and penalty. If you expect a refund, the CRA aims to process electronically filed returns within four weeks, but that is a service standard rather than a guarantee.
What late filing costs
A late return carries a penalty of 1% of the amount owing, plus 25% of that 1% for each full month it is overdue, to a maximum of 12 months. For illustration only, if $2,000 is owing and the return is three months late, the penalty is $20 plus $15, or $35, before interest. Interest is charged on overdue amounts at the CRA’s basic rate plus 4%, and neither the penalty nor the interest is deductible for income tax.
Failing to file electronically when required adds a penalty of $100 for the first return and $250 for each later one. If a return is already late, filing it quickly stops the penalty from growing, and a nil or refund return does not attract the late-filing penalty.
Plan for instalments in year two
Annual filers may have to pay quarterly instalments if net tax for both the previous and current fiscal year is $3,000 or more. A new registrant’s first fiscal year may be short, and that can trick you into believing the amount is small. To estimate, divide the net tax for the short year by the days you were registered and multiply by 365.
For illustration, if you were registered for 20 days and net tax was $200, prorating gives $3,650 for a full year, so instalments may apply the next year. Ask your accountant to run this estimate after the first return rather than waiting for the second year’s first due date.
After you file
Keep your sales and purchase invoices and GST/HST records for six years from the end of the year they relate to. Note the date filed and the payment confirmation, since a return with a payment equal to the balance owing or a nil return does not generate a notice of assessment.
For your first return, bring the CRA registration confirmation, your effective date, a sales report by date, purchase invoices from around the registration date, and your list of capital purchases. If you registered late or have returns still unfiled, describe the situation to Sora so the work can be scoped around the periods involved.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- General information for GST/HST registrantsCanada Revenue Agency
- When to register for and start charging GST/HSTCanada Revenue Agency
- Input tax creditsCanada Revenue Agency
- GST/HST and payroll recordsCanada Revenue Agency
- Register for a GST/HST accountCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.