Canada: GST/HST and QST relief (COVID-19)

Canada: GST/HST and QST relief (COVID-19)

Businesses may defer certain GST/HST* and QST** payments and remittances until 30 June 2020 pursuant to relief measures responding to the coronavirus (COVID-19) pandemic.

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The Canada Revenue Agency (CRA) and Revenu Quebec recently announced that businesses will be allowed to defer GST/HST and QST payments and remittances when due on or after 27 March 2020 and before June 2020.

Both the CRA and Revenu Quebec have noted that the related returns due during this period need to be filed on time, and no penalties will be assessed if the returns are filed no later than 30 June 2020. Revenu Quebec further clarified that the QST relief does not extend to other provincial specific taxes, such as the tobacco tax and the tax on insurance premiums.

The relief may allow businesses to improve their current cash-flow. Businesses need to make certain that the taxes are remitted by 30 June 2020 to reduce possible additions for non-deductible interest and penalties.

Read an April 2020 report prepared by the KPMG member firm in Canada


*GST/HST = goods and services tax / harmonized sales tax

**QST = Quebec sales tax

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