If you’re a Canadian small-business owner, the words “HST return” might feel like a checkbox. But in 2025 the stakes are higher: wrong timing, misreporting or missed payments can trigger significant penalties from the Canada Revenue Agency (CRA). This article outlines the smart way to file your HST (or GST/HST) returns—so you stay compliant, avoid surprises, and keep your focus on your business.
Key 2025 Deadlines & Reporting Periods for HST/GST
Understanding when you must file and how often is the foundation of compliance.
The CRA states: “If your reporting period is monthly or quarterly, your filing and payment deadline is one month after the end of the reporting period.”
Example: If your monthly period ends July 31, your filing and payment are due August 31.
Example: If your quarterly period ends March 31, you must file by April 30.
For annual filers (corporations) the filing and payment deadline is three months after the fiscal year-end. Canada
E.g., fiscal year-end August 31 → filing/payment due November 30.
Important update: Starting 2024-25 the CRA requires most registrants (excluding charities and selected financial institutions) to file HST returns electronically.
Don’t rely on guess-work: your My Business Account with CRA shows your assigned reporting period and deadlines.
Common HST Filing Mistakes—and Penalties That Follow
1. Late Filing or Payment
Failing to file or pay by the deadline triggers:
A late-filing penalty (often 5% of the amount owing + 1% for each full month late, up to 12 months) in tax returns—similar logic applies for HST owing.
The CRA’s “quick reference” for businesses underscores the one-month rule for many returns.
2. Filing Paper Returns When Electronic Filing Is Mandatory
The CRA is clear: for most registrants, paper HST returns are no longer accepted for 2024 onward unless an exemption is approved.
Filing paper can trigger processing delays and penalties.
3. Incorrect Reporting Period or Mis-classifying Nil Returns
Even if you have no HST to remit, you must still file a nil return. Missing that triggers automated reminders and may raise flags.
4. Payment Shortfalls or Incorrect Remittances
If the remittance is short (e.g., you expect input tax credits but under-apply them), the CRA can assess interest and penalties.
Also, businesses that qualified for installment payments but did not comply are at risk.
Even if you file on time, if you cannot support the figures with proper bookkeeping (invoices, receipts, digital records), the CRA may reassess you or trigger a review.
In 2025 the CRA’s digital tools and analytics increase focus on compliance ease.
Best Practice Checklist for Small Businesses in Canada
Here’s a practical checklist you can plug into your Q4 routine to stay ahead:
Verify your HST reporting period (monthly/quarterly/annual) via My Business Account.
Schedule a recurring calendar reminder one month before each HST return due date.
Switch to electronic filing, if you haven’t already.
Reconcile your GST/HST collected vs. input tax credits monthly.
File nil returns promptly if you had no activity.
Keep detailed records (tax invoices, retailer receipts, digital backups) for at least 6 years.
Set aside sufficient cash to cover your remittance—avoid surprises at payment time.
Consider consulting a CPA before year-end if you: changed your business structure, had a large input tax credit claim, or started/stopped registration during the year.
Use bookkeeping/accounting software that supports GST/HST reporting and links to CRA’s electronic systems.
How Bhundhoo Tax Professional Corporation Can Help
At Bhundhoo Tax Professional Corporation, we specialise in helping Canadian small businesses stay HST-compliant while keeping admin light. Our services include:
Setting up your HST reporting schedule (monthly/quarterly/annual).
Migrating your bookkeeping to cloud software with GST/HST dashboards.
Real-time review of your input tax credits and remittances.
Year-end checklist and “look-back” to identify any late filings or remittance issues.
Audit-ready file assessments for HST returns (so you’re prepared in case CRA asks).
We help you stop worrying about HST and focus on growth.
Final Word: Don’t Wait Until the Penalty Hits
HST filing isn’t just a formality—it’s a compliance cornerstone. In 2025 the CRA’s systems are more automated, more connected, and less forgiving.
But here’s the good news: with a clear schedule, precise bookkeeping and expert support, you can file stress-free, on time, and penalty-free.