Tax Implications & Updates During COVID-19

Tax Implications & Updates During COVID-19

During these uncertain times of the COVID-19 pandemic, there are many new and unprecedented challenges we find ourselves facing and adapting to. Although the health and safety of everyone are of the utmost importance there are also significant financial issues and updates being discussed daily by both the Provincial and Federal governments.

With new information coming out on a seemingly minute to minute basis, it can be hard for organizations to be expected to keep up with every piece of information that may be relevant to their industry or tax situation. Our attempt with this post will be to keep you updated with some of the most current and pressing issues in the Canadian Tax realm that will help you navigate your decision making through the upcoming weeks and months.

Be sure to follow us on LinkedIn and Facebook to ensure you’re up to date with the latest information. If you aren’t sure if or how these updates affect your specific industry sector, or company please reach out to us by phone or email or if you have a more general question fill out our contact form.

 

Update – Apr. 1, 2020 – The CRA has compiled a useful FAQ for GST/HST questions. Should you have further questions after consulting the FAQ, please reach out to us.


Deferral of Sales Tax Remittance and Customs Duty Payments

In order to provide support for Canadian businesses during these unprecedented economic times, the Government is deferring Goods and Services Tax/Harmonized Sales Tax (GST/HST) remittances and customs duty payments to June 30, 2020.

GST/HST Remittance Deferral

The GST/HST applies to sales of most goods and services in Canada and at each stage of the supply chain. Vendors must collect the GST/HST and remit it (net of input tax credits) with their GST/HST return for each reporting period.

Vendors with annual sales of more than $6 million remit and report monthly, and those with annual sales of $1.5 million to $6 million are able to remit and report on a quarterly basis (or monthly if they choose to). Small vendors can report annually.

The GST/HST amounts collected are generally due by the end of the month following the vendor’s reporting period: e.g., for a monthly filer, the GST/HST amounts collected on its February sales are due by the end of March.

To support Canadian businesses in the current extraordinary circumstances, the Minister of National Revenue will extend, until June 30, 2020, the time that:

  • Monthly filers have to remit amounts collected for the February, March and April 2020 reporting periods;
  • Quarterly filers have to remit amounts collected for the January 1, 2020 through March 31, 2020 reporting period; and
  • Annual filers, whose GST/HST return or instalment are due in March, April or May 2020, have to remit amounts collected and owing for their previous fiscal year and instalments of GST/HST in respect of the filer’s current fiscal year.

Business in need of information to include following us or contacting us as an alternative/ or in conjunction with visiting the CRA website.


Quebec QST Update

As of March 27, 2020, the Québec government announced new measures to help individuals and businesses weather this difficult period. First, Québec is following the federal government’s lead and allowing businesses to postpone QST filing until June 30, 2020 their returns and payments in respect of the March 31, April 30 and May 31 QST remittances, without interest or penalties. Moreover, Québec will accelerate the processing of requests for tax credits intended for businesses and tax refunds.

 


 

As we learn more about the situations in each Province’s progress we will continue to update this document.