COVID-19 — Don’t miss your June 30 GST/HST and QST deadlines
Don’t miss your June 30 GST/HST and QST deadlines
Also, Manitoba and Newfoundland and Labrador released new filing extensions for some taxes
As a reminder, the upcoming June 30, 2020 deadline is approaching for businesses that took advantage of the COVID-19 relief programs for GST/HST and QST and customs duty payments over the last few months. For GST/HST and QST purposes, this extended deadline applies to remittances originally due on or after March 27, 2020 and before June 2020. The federal government and Quebec have not provided any additional extensions regarding GST/HST, QST and custom duties. Also, businesses have been advised to continue to file their GST/HST and QST returns on time. As a result, these entities should ensure that they have filed all their GST/HST and QST returns due during the relief period by June 30, 2020, if they have not done so. Businesses that do not file their returns or remit these taxes by June 30, 2020 could be assessed for non-deductible interest and penalties.
Some businesses may also be interested in Manitoba's recent deadline extension to July 20, 2020 for retail sales tax (RST) and Health and Post Secondary Education Tax Levy (also known as HE Levy or payroll tax), applicable to certain small and medium sized businesses. This new relief was announced May 29, 2020. Also, Newfoundland and Labrador have extended the filing and remittance deadlines to August 20, 2020 for certain provincial taxes originally due between March 20, 2020 and July 31, 2020.
As announced by Finance and Quebec on March 27, 2020, the extended June 30, 2020 deadline applies to businesses' GST/HST and QST payments and remittances related to GST/HST and QST returns due on or after March 27, 2020 and before June 2020. For monthly filers, this relief generally applies to remittances related to February, March and April GST/HST and QST returns.
Finance announced a similar extended June 30, 2020 payment deadline for GST and custom duties on imported goods for statements of accounts for the months of March, April and May (from the first day of the month following the issuance of the statements of accounts, i.e., April 1, May 1 and June 1, 2020).
As a reminder, businesses must still collect the applicable taxes on their taxable sales, as the relief offered by the federal and provincial governments generally applies to the businesses' tax remittances and in some cases, to the late-filing of GST/HST and QST tax returns.
Manitoba — Deadline extension for some businesses
Manitoba is further extending existing provincial relief for some businesses by an extra month. The new measures apply to small and medium sized businesses with monthly remittances of $10,000 or less.
As such, a new July 20, 2020 deadline applies to businesses with $10,000 or less per month of RST remittances due on April 20, May 20 and June 22. Previously, qualifying businesses' RST remittances due on April 20, 2020 and May 20, 2020 were extended to June 22. Qualifying businesses with an RST quarterly reporting period that had a RST remittance due on April 20, 2020 will also see this due date extended to July 20, 2020.
Similarly, Manitoba is also extending the filing deadline for HE Levy purposes by an extra month to July 15, 2020 (previously extended to June 15, 2020) for businesses with monthly HE Levy remittances of $10,000 or less per month that were originally due April 15, May 15 and June 15, 2020.
Newfoundland and Labrador Further Extend Deadlines
Newfoundland and Labrador also extended the filing and remittance deadlines for certain provincial taxes, such as gasoline tax and tax on insurance premiums, which were originally due between March 20, 2020 and July 31, 2020. The filing and remittance deadlines for these qualifying tax returns are now extended to August 20, 2020. The province announced this further extension on June 8, 2020.
Saskatchewan & British Columbia — Upcoming PST deadlines
As a reminder, Saskatchewan previously extended the deadline to July 31, 2020 for remittances of PST collected related to February, March and April provincial sales tax (PST) returns for businesses with monthly reporting periods. Other rules apply for businesses with quarterly reporting periods.
As a reminder, British Columbia previously extended its deadline to September 30, 2020 for filing provincial sales tax (PST) returns and remitting PST collected from February to the end of July, applicable to businesses with monthly reporting periods. The province notes that businesses will be required to still file every PST return individually by September 30, 2020. Other rules apply for businesses with quarterly reporting periods.
Notably, neither British Columbia nor Saskatchewan have expanded their extended deadline relief.
We can help
KPMG can help you determine how the GST/HST, QST and other indirect tax rules apply to your entities and may affect your business. We can also assist you with your indirect tax compliance obligations, including the preparation and review GST/HST and/or QST returns. In addition, we can help identify areas where you may be able to manage certain tax costs and any elections that should be considered.
For more information, please contact your KPMG adviser or one of the following Indirect Tax professionals:
National Leader - Indirect Tax Services
Information is current to June 9, 2020. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500
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