Our Disclosure

The content on this website includes links to our partners and we may receive compensation when you sign up, at no cost to you. This may impact which products or services we write about and where and how they appear on the site. It does not affect the objectivity of our evaluations or reviews. Read our disclosure.

GST/HST Quarterly Instalment Payment Dates for Businesses in 2024

Updated:

Fact Checked

Your business may need to pay GST or HST to the CRA in quarterly instalments throughout the year or face penalties and interest at tax time.

If your business earns revenue exceeding $30,000 in the last calendar year, you no longer qualify as a “small supplier” and must register to collect and remit GST/HST on eligible sales in Canada. This $30,000 threshold may be met in a single quarter or over multiple quarters within your business year.

With GST/HST registration comes the need to file a GST/HST return at the end of your fiscal year.

If the net GST/HST collected by your business exceeds $3,000 in the previous year and you file your returns annually, CRA expects you to remit GST/HST in four quarterly instalments and not wait until the end of the year.

GST/HST Instalments Due Dates

GST/HST installment payment for each quarter is due within one month after the end of each fiscal quarter.

If your business has a December 31 year-end, you must make instalment payments by:

Fiscal QuartersInstalment Due Dates
January 1 – March 31April 30
April 1 – June 30July 31
July 1 – September 30October 31
October 1 – December 31January 31

If your net GST/HST in the last fiscal year did not meet the $3,000 threshold, you have a payment deadline date of April 30 in the following year to pay any GST/HST balance outstanding, and your GST/HST return must be filed by June 15.

If you are required to pay GST/HST in instalments and you have a balance owing at the end of the fiscal year because your net GST/HST increased, the balance owed must be paid 3 months after your fiscal year end.

For example, if you have a December 31 year end, your GST/HST return must be filed by March 31st (and balance owing paid to avoid penalties).

Related: GST Payments Dates for Individuals.

How To Calculate GST/HST Instalment Payments

1. Divide the total GST you paid in the previous year into four parts and pay each “one-quarter” on or before the quarterly due dates mentioned earlier.

For example, if your net GST/HST in 2023 was $6,000, then $1,500 is due by April 30, July 31, October 31, 2024, and January 31, 2025.

If at the end of the year, it is determined you have overpaid GST/HST, CRA will issue you a refund. If the total instalments are lower than what you owe, you can pay the balance to the CRA and not incur penalties if you pay it on time.

2. Estimate what your GST/HST balance will be for the current year and pay it in instalments. This formula works if you believe that your GST/HST balance will be lower for the year and you don’t want to give the CRA an interest-free loan.

If you end up owing taxes, instalment interest will be charged, as it means your estimates were off, and your instalment payment should have been more.

How To Make GST/HST Payments

To start, you should register a CRA My Business Account to access your tax documents online.

This online service is available 24/7, and you can use it for GST/HST returns, payroll, corporation income tax filing, excise duties, and more.

For GST/HST purposes, the CRA MyBusiness Account also offers a nifty instalment tax calculator.

You can make GST/HST instalment payments via:

1. The CRA’s My Payment electronic service.

2. CRA’s My Business Account by setting up pre-authorized payments.

3. Your financial institution. For example, I can pay directly from my TD Business Account.

GST HST TD Bank Payment

4. By Mail: Complete Form RC160, Remittance Voucher, and mail it with your cheque. You can order a personalized remittance voucher through My Business Account.

Related: How To Open a CRA My Business Account.

Instalment Interest and Penalties

If you are supposed to make GST/HST instalments and forget to do so, CRA adds interest to your balance starting on the day after the instalment was done until the earlier of:

  • The day the overdue instalment amount and any accrued interest is paid
  • The day your net tax for the year is due

The interest charged is based on CRA’s prescribed rate and is currently 5%.

Interest is also charged if you base your quarterly payments on your GST/HST for the current year (not the previous year), and there’s a shortfall at the end of the fiscal year.

Of note is the fact that this interest expense is not tax-deductible, so you won’t be getting a break by writing it off.

If you overpay GST/HST, CRA pays interest on your refund at a 1% rate (the timelines for earning interest on your refund are not as attractive).

In some situations (e.g. severe hardship), you may be able to apply for a waiver of interest and penalties.

Related: Legit Work From Home Jobs.

Final Thoughts

The CRA did not inform me when I needed to start making quarterly instalments for GST/HST. I learned about it the hard way after paying interest on the late payments. So you need to monitor your business finances and the $3,000 threshold.

Note that if your first fiscal year is shorter than 12 months, you may need to do some calculations to determine whether you are due for GST/HST instalments.

For example, if you collected $1,000 in GST and were in business for only 100 days in your first calendar year (2023), below is what the calculation looks like:

($1,000/100 days) x 365 days = $3,650 net GST/HST.

In this case, you must make quarterly instalments in 2024.

For inquiries about your business tax account, you can reach the CRA at 1-800-959-5525.

Float Business Credit Card

Rewards: Earn 1% cash back on spending that exceeds $25,000 monthly; get access to multiple CAD and USD cards and pay no FX fees. You also earn 4% interest on your CAD and USD balance.

Welcome offer: Get $500 in cashback for becoming a Float customer and spending $25,000 within the first 90 days.

Interest rates: Not applicable (for refunded prepaid cards).

Annual fee: $0 for standard cards.

Frequently Asked Questions

Do I have to pay GST/HST instalments?

If you collected and remitted $3,000 or more in GST/HST in the previous fiscal year, you are required to make quarterly instalments in order to avoid interest fees or penalties.

How much do I have to make to register for GST/HST?

When your business revenue is $30,000 or more, the CRA requires you to start collecting and remitting GST/HST.

What happens if I don’t make GST/HST instalments?

You pay interest on the outstanding balance starting from when the payment was due. The current prescribed interest rate charged by the CRA is 5%.

When are quarterly GST/HST payments due?

They are due by April 30, July 31, October 31, and January 31.

Related:

Best Freebies and Deals This Month

Get a $20 bonus + Earn up to 5% cash back and Interest with this FREE Card

Best free* reloadable prepaid card with a $20 signup bonus after your first purchase.

Earn up to 5% unlimited cash back on purchases.

Enjoy 5% savings interest rate on your entire balance (up to 3x more than the big banks).

Guaranteed approval card, free unlimited transactions, & budgeting app.

Add on credit-building and get free monthly Equifax credit score checks.

Best FREE chequing account offer in Canada with $400 cash bonus

$400 cash bonus when you set up a direct deposit of $100 for 3 months.

Forget about monthly account fees or minimum balance requirements.

Unlimited free debits and Interac e-Transfer transactions.

Earn high-interest rates on a free savings account (6.00% savings offer).

Get the prepaid card that pays interest and unlimited cash back

One of the best no-fee prepaid debit cards in Canada.

Get 0.50% unlimited cash back on all purchases.

Earn 4.00% interest on your entire balance.

No ATM withdrawal fees and no FX fees when you spend abroad.

Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu, personal finance expert, author, and founder of Savvy New Canadians, has written about money matters for over 10 years. Enoch has an MSc (Econ) degree in Finance and Investment Management from the University of Aberdeen Business School and has completed the Canadian Securities Course. His expertise has been highlighted in major publications like Forbes, Globe and Mail, Business Insider, CBC News, Toronto Star, Financial Post, CTV News, TD Direct Investing, Canadian Securities Exchange, and many others. Enoch is passionate about helping others win with their finances and recently created a practical investing course for beginners. You can read his full author bio.

About Savvy New Canadians

Savvy New Canadians is one of Canada's top personal finance platforms. Millions of Canadians use our site each year to learn how to save for retirement, invest smartly, maximize rewards, and earn extra cash. We have been featured in prominent finance media, including Forbes, Globe and Mail, Business Insider, CBC, MSN, Wealthsimple, and TD Direct Investing. Learn more about Savvy New Canadians.

Free financial education

Expert advice

Free resources

Detailed guides

Leave a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.