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Level 2
posted Jan 4, 2024 12:49:09 PM

Small business- charging taxes to consumers vs me paying taxes at the end of the year

Hi guys,
I run a small business in Ontario and sell my product to consumers at a flat rate of $10 per unit. I do not charge HST to consumers on sales. It is simply a straight $10 per unit. I expect my gross revenue for the year to be around $6k. Next year it will be closer to $25k+. Given this, when I file my taxes next month (for the 2023 calendar year), can I simply pay taxes (i.e. the HST I would have passed on to consumers) as part of my filing? Or going forward should I be charging HST on top of every unit sale?

0 5 1148
5 Replies
Moderator
Jan 4, 2024 1:13:31 PM

If you are registered to collect GST/HST, then you need to submit a GST/HST return through the Canada Revenue Agency (CRA) website. You can read more about it on this CRA page: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-information-gst-hst-registrants.html#H1_114

 

You would submit any GST/HST that you owe with the GST/HST return.

 

If you need assistance with your GST/HST return you can contact the CRA for help, or you can have your taxes done by a tax expert at TurboTax Full Service. They will prepare both your personal tax return and your GST/HST return for you. You can read more about TurboTax Full Service on our website here: https://turbotax.intuit.ca/tax/pricing?preselectedPills=pnp-pill-self-employed-freelancer

Level 2
Jan 4, 2024 1:55:13 PM

Thanks! Question though- given I use Turbo Tax Standard to file my taxes online, would the Turbo Tax system automatically account for the taxes I owe and deduct that from any refund?

Moderator
Jan 4, 2024 2:16:57 PM

As I mentioned previously, GST/HST is reported on a separate return, and you would calculate and submit any sales tax owed with that return. The TurboTax software is for your personal tax return and won't calculate how much GST/HST you should have collected. 

Level 2
Jan 4, 2024 6:06:05 PM

Maybe I'm referring to the wrong Turbo Tax version? I know the one I've used in the past definitely has a section for filing small business taxes...

Intuit Alumni
Jan 5, 2024 5:16:49 AM

For more information about paying taxes on your services, please contact the Canada Revenue Agency: Individual tax enquiries line
 

Please see this link to view our other TurboTax download software and compare them.

 

Thank you for choosing TurboTax.