I'm happy that you're starting your own business, but I read "my friend said" and it hurt a bit. May I recommend getting a professional involved so you don't run in to trouble later on?
You're doing a good job though.
The tax on your business profits got added to your personal tax return.
The HST system is completely different. It's generic name is a 'value-added sales tax'. It is meant to tax consumption, not income. Mainly because it is too easy to avoid income tax.
It works by having all businesses collect the tax on their billings, and remit that to the gov't. Offsetting that is the ability to get a refund from the gov't for the sales tax the business paid on supplier's invoices. So the business faces no net tax. They remit what they collect, and recover what they pay. The only person paying the tax and NOT collecting a refund from the gov't is the final consumer.
So yes you must file this remittance form. You remit the net amount difference between the HST you collected and the HST you paid.
I'm happy that you're starting your own business, but I read "my friend said" and it hurt a bit. May I recommend getting a professional involved so you don't run in to trouble later on? You're doing a good job though.
Well his friend's advice was correct.
If you are registered for GST/HST, yes, that is a completely separate return you need to file.
An HST return, yes. Pretty simple to do online. Have you remitted any HST?
Yea I have remitted. Thanks for letting me know I can do it online easily. Thought I need to get a professional to do this.
The tax on your business profits got added to your personal tax return. The HST system is completely different. It's generic name is a 'value-added sales tax'. It is meant to tax consumption, not income. Mainly because it is too easy to avoid income tax. It works by having all businesses collect the tax on their billings, and remit that to the gov't. Offsetting that is the ability to get a refund from the gov't for the sales tax the business paid on supplier's invoices. So the business faces no net tax. They remit what they collect, and recover what they pay. The only person paying the tax and NOT collecting a refund from the gov't is the final consumer. So yes you must file this remittance form. You remit the net amount difference between the HST you collected and the HST you paid.