For many small business owners in Canada, GST and PST filing can feel confusing at first. Understanding tax rules, filing deadlines, and reporting requirements is important to avoid penalties and keep your business compliant.
The good news is that GST/PST filing becomes much easier once you understand the basics. This beginner’s guide explains what GST/PST is, who needs to register, and how the filing process works in Canada.
What Is GST?
GST stands for Goods and Services Tax. It is a federal sales tax charged on most goods and services sold in Canada.
The current GST rate is:
- 5% federal tax
Some provinces combine GST with provincial sales tax into HST (Harmonized Sales Tax), while provinces like Saskatchewan use separate GST and PST systems.
What Is PST?
PST stands for Provincial Sales Tax. It is charged by certain provinces in addition to GST.
In Saskatchewan:
- PST rate: 6%
- Businesses may need to collect both GST and PST from customers.
Who Needs to Register for GST/PST?
Businesses generally need to register if their annual revenue exceeds $30,000 over four consecutive calendar quarters.
You May Need Registration If You:
- Sell products or services in Canada
- Operate a growing business
- Earn taxable business income
- Provide services subject to GST/PST
Even businesses earning less than $30,000 may choose voluntary registration.
Why GST/PST Filing Matters
Accurate tax filing helps businesses:
- Stay compliant with CRA regulations
- Avoid penalties and interest charges
- Maintain organized financial records
- Claim eligible tax credits
- Build a professional business reputation
Ignoring tax obligations can create serious financial problems later.
How GST/PST Filing Works
1. Collect Taxes From Customers
Businesses registered for GST/PST must charge applicable taxes on taxable goods or services.
Example in Saskatchewan:
- Product Price: $100
- GST (5%): $5
- PST (6%): $6
- Total Charged: $111
2. Track Sales and Expenses
Keep records of:
- Sales invoices
- Receipts
- Business expenses
- Collected taxes
- Paid taxes on purchases
Good bookkeeping makes tax filing much easier.
3. Calculate Taxes Owed
At filing time:
- Add total GST/PST collected from customers
- Subtract eligible input tax credits or business tax expenses
- Determine the remaining balance owed
4. Submit Your Return
Businesses file GST/PST returns either:
- Monthly
- Quarterly
- Annually
This depends on business revenue and registration type.
Returns can usually be filed online through CRA and provincial tax systems.
Common GST/PST Filing Mistakes
Small businesses often make mistakes such as:
- Missing deadlines
- Charging incorrect tax rates
- Poor recordkeeping
- Forgetting eligible deductions
- Mixing personal and business expenses
These mistakes can result in audits, penalties, and additional taxes owed.
Tips for Easier GST/PST Filing
✔ Keep Records Organized
Save invoices, receipts, and expense records consistently.
✔ Separate Business Finances
Use separate bank accounts for business transactions.
✔ Track Taxes Monthly
Avoid waiting until filing deadlines approach.
✔ Use Accounting Software
Digital tools simplify calculations and reporting.
✔ Work With Professionals
Professional bookkeeping support reduces stress and improves accuracy.
Benefits of Professional GST/PST Support
Professional services can help businesses:
- File taxes correctly
- Stay compliant
- Save time
- Reduce errors
- Avoid penalties
- Focus on growth instead of paperwork
For many entrepreneurs, professional support provides peace of mind.
Final Thoughts
GST/PST filing is an essential part of running a business in Canada. While it may seem overwhelming at first, staying organized and understanding the basics can make the process much simpler.
Accurate filing helps businesses stay compliant, financially organized, and prepared for long-term growth.
Need Help With GST/PST Filing?
At Go Get, we help Saskatchewan businesses with bookkeeping, payroll, GST/PST filing, tax support, and financial organization through simple and affordable business solutions.
Stay compliant and stress-free with professional support.
