Canada GST HST

Canada GST/HST Return Skill (Form GST34) v2.0

Section 1 — Quick reference

Read this whole section before classifying anything. The workflow runbook is in vat-workflow-base Section 1 — follow that runbook with this skill providing the country-specific content.

Quick reference field table

Quick reference field table

Field	Value
Country	Canada
Federal GST rate	5%
HST rates by province	ON 13%, NS 14% (effective Apr 1 2025), NB 15%, NL 15%, PE 15%
GST-only provinces	AB, BC, SK, MB, QC, NT, NU, YT (5% GST; BC/SK/MB/QC have separate provincial sales taxes)
Zero rate	0% (basic groceries, prescription drugs, medical devices, exports)
Exempt	Financial services, residential rent, most health/dental/legal aid, childcare
Return form	GST34 (GST/HST Return for Registrants)
Filing portal	CRA My Business Account (canada.ca)
Authority	Canada Revenue Agency (CRA)
Currency	CAD only
Filing frequencies	Annual (taxable supplies <= $1.5M), Quarterly ($1.5M–$6M), Monthly (> $6M or voluntary election)
Deadline	Monthly/quarterly: 1 month after period end; Annual: 3 months after fiscal year end (individuals: June 15 but payment due April 30)
Small supplier threshold	$30,000 in any single calendar quarter or in the last four consecutive calendar quarters (ETA s.148)
Companion skill (Tier 1, workflow)	vat-workflow-base v0.1 or later — MUST be loaded
Contributor	Open Accounting Skills Community
Validation date	April 2026

Key GST34 lines

Line	Meaning
101	Total sales and other revenue (before GST/HST)
103	GST/HST collected or collectible
104	Adjustments to GST/HST (e.g., bad debt recovery, change-in-use)
105	Total GST/HST and adjustments (= 103 + 104)
106	Input tax credits (ITCs)
107	Adjustments to ITCs (e.g., recapture of ITCs on large business inputs — expired 2018)
108	Total ITCs and adjustments (= 106 + 107)
109	Net tax (= 105 − 108; positive = owing, negative = refund)
110	Instalments paid
111	Rebates claimed
112	Total other credits (= 110 + 111)
113	Balance (= 109 − 112; positive = amount owing)
114	Refund claimed
115	Amount owing

GST/HST rates by province (complete)

Province/Territory	Rate	Components	Effective
Alberta (AB)	5%	GST only	—
British Columbia (BC)	5% GST + 7% PST	Separate PST (not on GST34)	—
Manitoba (MB)	5% GST + 7% RST	Separate RST (not on GST34)	—
New Brunswick (NB)	15% HST	Harmonized	—
Newfoundland & Labrador (NL)	15% HST	Harmonized	—
Northwest Territories (NT)	5%	GST only	—
Nova Scotia (NS)	14% HST	Harmonized	Apr 1, 2025
Nunavut (NU)	5%	GST only	—
Ontario (ON)	13% HST	Harmonized	—
Prince Edward Island (PE)	15% HST	Harmonized	—
Quebec (QC)	5% GST + 9.975% QST	Separate QST (filed with Revenu Quebec)	—
Saskatchewan (SK)	5% GST + 6% PST	Separate PST (not on GST34)	—
Yukon (YT)	5%	GST only	—

Conservative defaults

Ambiguity	Default
Unknown rate on a sale	HST at rate of province of supply (default ON 13% if province unknown)
Unknown GST/HST status of a purchase	Not eligible for ITC
Unknown province of supply	Province of registration
Unknown business-use proportion (vehicle, phone, home office)	0% ITC
Unknown whether personal or business expense	Personal (no ITC)
Unknown blocked-input status (club dues, personal)	Blocked
Unknown whether transaction is in scope	In scope

Red flag thresholds

Threshold	Value
HIGH single-transaction size	CAD 5,000
HIGH tax-delta on a single conservative default	CAD 400
MEDIUM counterparty concentration	>40% of output OR input
MEDIUM conservative-default count	>4 across the return
LOW absolute net tax position	CAD 10,000

Section 2 — Required inputs and refusal catalogue

Required inputs

Minimum viable — bank statement for the period in CSV, PDF, or pasted text. Must cover the full period. Acceptable from any Canadian or international business bank: RBC, TD, Scotiabank, BMO, CIBC, National Bank, Desjardins, Tangerine, Simplii, EQ Bank, Revolut Business, Wise Business, or any other.

Recommended — sales invoices for the period (especially for zero-rated exports and interprovincial supplies), purchase invoices for any ITC claim above CAD 400, the client's GST/HST Business Number (BN format: 123456789RT0001).

Ideal — complete sales journal, purchase journal, prior period GST34, Quick Method election (if applicable — but then R-CA-3 fires).

Refusal policy if minimum is missing — SOFT WARN. If no bank statement is available at all, hard stop. If bank statement only without invoices, proceed but record in reviewer brief: "This GST34 was produced from bank statement alone. The reviewer must verify that ITC claims above CAD 400 are supported by compliant invoices containing the supplier's BN and that place-of-supply determinations are correct."

Canada-specific refusal catalogue

• R-CA-1 — Quebec QST — Quebec Sales Tax (QST) is administered by Revenu Quebec and filed separately from the federal GST return. This skill covers federal GST/HST (Form GST34) only. For QST, please use a CPA familiar with Quebec tax administration. (Trigger: client is in Quebec or asks about QST filing.)
• R-CA-2 — Provincial sales tax (BC PST, SK PST, MB RST) — Provincial sales taxes (BC PST, SK PST, MB RST) are separate from GST/HST and filed with the respective provincial authority. This skill covers the federal GST/HST return only. (Trigger: client asks about BC PST, Saskatchewan PST, or Manitoba RST filing.)
• R-CA-3 — Quick Method — The Quick Method calculates GST/HST remittance as a percentage of GST/HST-included revenue rather than tracking actual ITCs. This skill covers the regular method only. For Quick Method returns, apply the prescribed remittance rate for your sector and province. (Trigger: client has elected the Quick Method of accounting (GST74).)
• R-CA-4 — Simplified method for charities/NPOs — Charities, NPOs, and public service bodies have special GST/HST rules including the net tax calculation and public service body rebates. Out of scope. (Trigger: client is a registered charity, NPO, or public service body using the simplified method or net tax calculation.)
• R-CA-5 — First Nations exemptions — First Nations tax exemptions under the Indian Act (section 87) have specific rules that are outside the scope of this skill. Please consult a tax professional experienced in Indigenous tax matters. (Trigger: client asks about tax exemptions under the Indian Act or supplies on reserve.)
• R-CA-6 — GST/HST groups (closely related corporations) — Closely related group elections under s.156 involve intercompany supply rules that are out of scope. Please use a CPA. (Trigger: client is part of a GST/HST group election under ETA s.156.)
• R-CA-7 — Non-resident simplified registration — The simplified registration framework for non-resident digital economy businesses has different rules. Out of scope. (Trigger: non-resident registrant under the simplified registration framework.)
• R-CA-8 — Real property transactions — Real property transactions involve self-supply rules (s.191), change-of-use rules, and rebate calculations that are too fact-sensitive for this skill. Please use a CPA. (Trigger: client is buying/selling real property (land, buildings) with self-supply or change-of-use implications.)

Section 3 — Supplier pattern library (the lookup table)

This is the deterministic pre-classifier. When a transaction's counterparty matches a pattern in this table, apply the treatment directly. If none match, fall through to Tier 1 rules in Section 5.

How to read this table. Match by case-insensitive substring on the counterparty name. If multiple patterns match, use the most specific.

3.1 Canadian banks (fees exempt — exclude)

Canadian banks table

Pattern	Treatment	Notes
RBC, ROYAL BANK OF CANADA	EXCLUDE for bank charges/fees	ETA Schedule V, Part VII: financial service, exempt
TD, TORONTO-DOMINION, TD CANADA TRUST	EXCLUDE for bank charges/fees	Same
SCOTIABANK, BANK OF NOVA SCOTIA	EXCLUDE for bank charges/fees	Same
BMO, BANK OF MONTREAL	EXCLUDE for bank charges/fees	Same
CIBC, CANADIAN IMPERIAL	EXCLUDE for bank charges/fees	Same
NATIONAL BANK, BNC, BANQUE NATIONALE	EXCLUDE for bank charges/fees	Same
DESJARDINS, CAISSE POPULAIRE	EXCLUDE for bank charges/fees	Same
TANGERINE, SIMPLII, EQ BANK	EXCLUDE for bank charges/fees	Same
REVOLUT, WISE, N26 (fee lines)	EXCLUDE for transaction/maintenance fees	Check for separate taxable subscription invoices
INTEREST, INTERET	EXCLUDE	Interest income/expense, exempt
MORTGAGE, HYPOTHEQUE, LOAN	EXCLUDE	Loan principal movement, out of scope

3.2 Canadian government and statutory bodies (exclude entirely)

Government bodies table

Pattern	Treatment	Notes
CRA, CANADA REVENUE AGENCY, RECEIVER GENERAL	EXCLUDE	Tax payment (GST remittance, income tax instalment)
REVENU QUEBEC	EXCLUDE	QST or income tax payment
CPP, CANADA PENSION PLAN	EXCLUDE	Pension contribution, not a supply
EI, EMPLOYMENT INSURANCE	EXCLUDE	Employment insurance premium
WSIB, WCB, CNESST	EXCLUDE	Workers compensation
SERVICE CANADA, SERVICE ONTARIO	EXCLUDE	Government fees, sovereign act
CITY OF, VILLE DE, MUNICIPAL	EXCLUDE	Municipal tax/fee

3.3 Canadian utilities

Canadian utilities table

Pattern	Treatment	Rate	Notes
HYDRO ONE, TORONTO HYDRO, BC HYDRO, HYDRO-QUEBEC	Taxable	GST/HST at provincial rate	Electricity — overhead
ENBRIDGE, FORTISBC, ATCO GAS	Taxable	GST/HST at provincial rate	Gas — overhead
TELUS	Taxable	GST/HST at provincial rate	Telecoms — overhead
ROGERS, ROGERS COMMUNICATIONS	Taxable	GST/HST at provincial rate	Telecoms — overhead
BELL, BELL CANADA, BELL MOBILITY	Taxable	GST/HST at provincial rate	Telecoms — overhead
SHAW, COGECO, VIDEOTRON	Taxable	GST/HST at provincial rate	Telecoms — overhead
FIDO, KOODO, VIRGIN PLUS, FREEDOM MOBILE	Taxable	GST/HST at provincial rate	Telecoms — overhead

3.4 Insurance (exempt — exclude)

Insurance table

Pattern	Treatment	Notes
MANULIFE, SUN LIFE, GREAT-WEST LIFE, CANADA LIFE	EXCLUDE	Insurance, exempt (ETA Schedule V, Part VII)
INTACT, AVIVA, DESJARDINS ASSURANCE	EXCLUDE	Same
CO-OPERATORS, WAWANESA, ECONOMICAL	EXCLUDE	Same
INSURANCE, ASSURANCE	EXCLUDE	All exempt

3.5 Post and logistics

Post and logistics table

Pattern	Treatment	Rate	Notes
CANADA POST, POSTES CANADA	EXCLUDE for standard letter mail		Exempt (ETA Schedule V, Part VII.1)
CANADA POST (courier, Xpresspost, Priority)	Taxable	GST/HST	Non-universal services are taxable
PUROLATOR	Taxable	GST/HST	Express courier
FEDEX CANADA, UPS CANADA, DHL CANADA	Taxable	GST/HST	Courier services
CANPAR, DICOM, LOOMIS	Taxable	GST/HST	Courier services

3.6 Transport

Transport table

Pattern	Treatment	Rate	Notes
VIA RAIL	Taxable	GST/HST	Domestic passenger rail
GO TRANSIT, TTC, STM, TRANSLINK, OC TRANSPO	EXCLUDE or zero-rated		Municipal transit — zero-rated per ETA Schedule VI, Part VII
UBER CANADA	Taxable	GST/HST	Ride-sharing; platform is GST-registered
LYFT	Taxable	GST/HST	Same
AIR CANADA (international)	Zero-rated	0%	International transport — Schedule VI, Part VII
AIR CANADA (domestic)	Taxable	GST/HST	Domestic air
WESTJET (international)	Zero-rated	0%	International
WESTJET (domestic)	Taxable	GST/HST	Domestic air
ENTERPRISE, HERTZ, AVIS, BUDGET (car rental)	Taxable	GST/HST at location rate	Car rental — ITC restricted if personal use

3.7 Food retail (generally zero-rated basic groceries — but personal)

Food retail table

Pattern	Treatment	Notes
TIM HORTONS, TIMS	Default BLOCK ITC	Restaurant/prepared food is taxable at GST/HST, but personal unless hospitality business
STARBUCKS, MCDONALDS, SUBWAY, A&W	Default BLOCK ITC	Same — prepared food/beverages are taxable but likely personal
LOBLAWS, NO FRILLS, REAL CANADIAN, SUPERSTORE	Default BLOCK ITC	Grocery — mix of zero-rated and taxable items; personal provisioning default
METRO, SOBEYS, SAFEWAY, IGA, SAVE-ON-FOODS	Default BLOCK ITC	Same
COSTCO, WALMART (grocery)	Default BLOCK ITC	Mixed supply — personal default
CANADIAN TIRE (non-food)	Taxable	GST/HST — ITC eligible if business purpose confirmed

3.8 SaaS — non-resident suppliers (self-assessment under ETA s.218)

Non-resident digital services suppliers to Canadian businesses: the Canadian registrant must self-assess GST/HST on imported taxable supplies under ETA s.218. Report on Line 405 of GST34 and claim offsetting ITC on Line 106.

SaaS non-resident table

Pattern	Billing entity	Treatment	Notes
GOOGLE (Ads, Workspace, Cloud)	Google Ireland Ltd (IE) or Google LLC (US)	Self-assess GST/HST s.218	Report on Line 405, claim ITC Line 106
MICROSOFT (365, Azure)	Microsoft Ireland Operations Ltd (IE)	Self-assess GST/HST s.218	Same
ADOBE	Adobe Systems Software Ireland Ltd (IE)	Self-assess GST/HST s.218	Same
META, FACEBOOK ADS	Meta Platforms Ireland Ltd (IE)	Self-assess GST/HST s.218	Same
NOTION	Notion Labs Inc (US)	Self-assess GST/HST s.218	Same
ANTHROPIC, CLAUDE	Anthropic PBC (US)	Self-assess GST/HST s.218	Same
OPENAI, CHATGPT	OpenAI Inc (US)	Self-assess GST/HST s.218	Same
FIGMA	Figma Inc (US)	Self-assess GST/HST s.218	Same
CANVA	Canva Pty Ltd (AU)	Self-assess GST/HST s.218	Same
SLACK	Slack Technologies Ltd (various)	Self-assess GST/HST s.218	Check if registered in Canada
ZOOM	Zoom Video Communications Inc (US)	Self-assess GST/HST s.218	Same
ATLASSIAN	Atlassian Pty Ltd (AU)	Self-assess GST/HST s.218	Same
DROPBOX	Dropbox Inc (US)	Self-assess GST/HST s.218	Same

Note: Many non-resident digital services suppliers have registered for GST/HST under the simplified registration framework (effective July 2021) and now charge GST/HST directly. If the invoice shows GST/HST charged with a valid BN, treat as a regular domestic purchase with ITC. If no GST/HST is charged, self-assess under s.218.

3.9 Canadian SaaS / domestic suppliers (ITC-eligible)

Canadian SaaS table

Pattern	Treatment	Rate	Notes
SHOPIFY	Taxable domestic	GST/HST (ON entity, 13% HST)	Platform subscription — ITC eligible
STRIPE PAYMENTS CANADA	Taxable domestic or exempt	Check invoice	Transaction fees may be exempt financial service; subscription taxable
WEALTHSIMPLE	EXCLUDE (exempt)	—	Financial service
FRESHBOOKS	Taxable domestic	GST/HST	Accounting software
WAVE FINANCIAL	Taxable domestic	GST/HST	Accounting software (now owned by H&R Block)
HOOTSUITE	Taxable domestic	GST/HST	Social media management

3.10 Payment processors

Payment processors table

Pattern	Treatment	Notes
STRIPE (transaction fees)	EXCLUDE (exempt)	Payment processing fees are exempt financial services
PAYPAL (transaction fees)	EXCLUDE (exempt)	Same
SQUARE, MONERIS, GLOBAL PAYMENTS	Check invoice	Transaction fees exempt; hardware/subscription taxable
INTERAC	EXCLUDE (exempt)	Interac fees are financial services

3.11 CRA payments and refunds

CRA payments table

Pattern	Treatment	Notes
CRA GST PAYMENT, RECEIVER GENERAL GST	EXCLUDE	GST remittance — not a supply
CRA INCOME TAX, INSTALMENT PAYMENT	EXCLUDE	Income tax — not a supply
CRA REFUND, GST REFUND	EXCLUDE	Government refund — not a supply
CRA CEBA, CEWS, CERS	EXCLUDE	Government subsidy — not a supply (but may have GST implications on repayment)

3.12 Professional services (Canada)

Professional services table

Pattern	Treatment	Rate	Notes
CPA, CHARTERED PROFESSIONAL ACCOUNTANT	Taxable	GST/HST	Always ITC-eligible
LAWYER, LAW OFFICE, BARRISTERS	Taxable	GST/HST	ITC-eligible if business purpose
NOTARY, NOTAIRE	Taxable	GST/HST	ITC-eligible if business purpose
CONSULTANT, CONSULTING	Taxable	GST/HST	ITC-eligible if business purpose

3.13 Payroll (exclude entirely)

Payroll table

Pattern	Treatment	Notes
PAYROLL, SALARY, WAGES	EXCLUDE	Wages — outside GST/HST scope
CPP CONTRIBUTION	EXCLUDE	Pension contribution
EI PREMIUM	EXCLUDE	Employment insurance
CERIDIAN, ADP, PAYWORKS	EXCLUDE for payroll runs	Payroll processing fee itself may be taxable

3.14 Property and rent

Property and rent table

Pattern	Treatment	Notes
RENT, LOYER (commercial)	Taxable	Commercial lease — GST/HST on rent, ITC eligible
RENT, LOYER (residential)	EXCLUDE	Residential lease exempt (ETA Schedule V, Part I)
CONDO FEES, STRATA FEES	EXCLUDE if residential	Residential condo fees exempt
PROPERTY TAX, MUNICIPAL TAX	EXCLUDE	Government levy, not a supply

3.15 Internal transfers and exclusions

Internal transfers table

Pattern	Treatment	Notes
TRANSFER, E-TRANSFER (own accounts)	EXCLUDE	Internal movement
INTERAC E-TRANSFER (to self)	EXCLUDE	Internal movement
DIVIDEND	EXCLUDE	Dividend payment, out of scope
LOAN REPAYMENT	EXCLUDE	Loan principal, out of scope
ATM WITHDRAWAL	TIER 2 — ask	Default exclude; ask what cash was spent on
OWNER DRAW, SHAREHOLDER LOAN	EXCLUDE	Owner withdrawal

Section 4 — Worked examples

These are six fully worked classifications drawn from a hypothetical bank statement of an Ontario-based self-employed software consultant.

Example 1 — Non-resident SaaS, self-assessment (Notion)

2026-04-03 ; NOTION LABS INC ; DEBIT ; Monthly subscription ; USD 16.00 ; CAD 21.89

Notion Labs Inc is a US entity (Section 3.8). No GST/HST on the invoice. This is an imported taxable supply under ETA s.218. The registrant must self-assess GST/HST at the applicable rate. Client is in Ontario → 13% HST. Self-assess HST of CAD 2.85 (21.89 * 0.13). Report on Line 405 (tax on imported supplies) and claim offsetting ITC on Line 106. Net effect zero.

Output table

Date	Counterparty	Gross	Net	GST/HST	Rate	Line (self-assess)	Line (ITC)	Default?	Question?	Excluded?
2026-04-03	NOTION LABS INC	-21.89	-21.89	2.85	13% HST	405	106	N	—	—

Example 2 — Domestic purchase with HST (Shopify)

2026-04-10 ; SHOPIFY COMMERCE INC ; DEBIT ; Monthly plan ; -49.00 ; CAD

Shopify is an Ontario-headquartered Canadian company. They charge 13% HST. The CAD 49.00 is the HST-inclusive price. Net = 49.00 / 1.13 = 43.36. HST = 5.64. Full ITC eligible on Line 106 for business software.

Output table

Date	Counterparty	Gross	Net	GST/HST	Rate	Line	Default?	Question?	Excluded?
2026-04-10	SHOPIFY	-49.00	-43.36	-5.64	13% HST	106	N	—	—

Example 3 — Entertainment, restricted ITC

2026-04-15 ; THE KEG STEAKHOUSE ; DEBIT ; Client dinner ; -285.00 ; CAD

Restaurant meal. Under ETA s.67.1 (via Income Tax Act cross-reference), meals and entertainment expenses are limited to 50% for income tax purposes. However, the full GST/HST ITC is claimable on the portion that is deductible for income tax (i.e., 50% of the GST/HST). Conservative default: block entirely as likely personal. If confirmed as business entertainment, 50% of ITC is claimable.

Output table

Date	Counterparty	Gross	Net	GST/HST	Rate	Line	Default?	Question?	Excluded?
2026-04-15	THE KEG STEAKHOUSE	-285.00	-285.00	0	—	—	Y	Q1	"Meals/entertainment: blocked (conservative)"

Example 4 — Capital asset (over $30,000)

2026-04-18 ; APPLE STORE YORKDALE ; DEBIT ; MacBook Pro 16 ; -3,729.00 ; CAD

CAD 3,729 including HST. Net = 3,729 / 1.13 = 3,300.88. HST = 428.12. This is a capital asset used in the business. Full ITC is claimable on Line 106. Capital assets are reported on Line 106 the same as current expenses in Canada (no separate capital line on GST34). However, if the asset is a passenger vehicle exceeding the CCA Class 10.1 ceiling (CAD 37,000 + tax for 2025/2026), the ITC is limited to the ceiling amount.

Output table

Date	Counterparty	Gross	Net	GST/HST	Rate	Line	Default?	Question?	Excluded?
2026-04-18	APPLE STORE	-3,729.00	-3,300.88	-428.12	13% HST	106	N	—	—

Example 5 — Export sale (zero-rated)

2026-04-22 ; ACME CORP USA ; CREDIT ; Invoice CA-2026-018 IT consulting March ; +5,500.00 ; CAD

Incoming CAD 5,500 from a US company. The client provides IT consulting services to a non-resident. Under ETA Schedule VI, Part V, s.5, services performed for a non-resident who is not registered for GST/HST and not a consumer in Canada are zero-rated. Report as revenue on Line 101 but zero-rated (no GST/HST on Line 103). Full ITC recovery on related inputs is preserved.

Output table

Date	Counterparty	Gross	Net	GST/HST	Rate	Line	Default?	Question?	Excluded?
2026-04-22	ACME CORP USA	+5,500.00	+5,500.00	0	0%	101 (zero-rated)	Y	Q2 (HIGH)	"Verify non-resident status and zero-rating conditions"

Example 6 — Vehicle costs, restricted ITC

2026-04-28 ; PETRO-CANADA ; DEBIT ; Fuel ; -92.00 ; CAD

Fuel purchase. In Canada, there is no blanket block on vehicle expenses (unlike Malta). ITCs are claimable to the extent of business use. For a passenger vehicle, the taxpayer must track business vs personal kilometers. Conservative default: 0% ITC (personal use assumed). If the taxpayer maintains a logbook showing, say, 60% business use, 60% of the GST/HST is claimable.

Output table

Date	Counterparty	Gross	Net	GST/HST	Rate	Line	Default?	Question?	Excluded?
2026-04-28	PETRO-CANADA	-92.00	-92.00	0	—	—	Y	Q3	"Vehicle fuel: 0% ITC (no logbook). Provide km logbook for partial ITC."

5.1 GST at 5% (ETA s.165(1))

• GST rate — 5% (ETA s.165(1))
• GST applicability — Federal component of all taxable supplies. Applies in GST-only provinces (AB, BC, SK, MB, NT, NU, YT). In these provinces, only 5% GST applies on the GST34. Provincial taxes (BC PST, SK PST, MB RST) are separate filings. (ETA s.165(1))

5.2 HST at harmonized rates (ETA s.165(2))

• HST harmonized rule — In harmonized provinces (ON 13%, NS 14%, NB 15%, NL 15%, PE 15%), the HST replaces GST. The full HST amount is reported on the GST34. There is no separate provincial filing for HST provinces. (ETA s.165(2))

5.3 Place of supply (SOR/2010-117)

• Place of supply rule — The rate depends on where the supply is made. For tangible personal property: province where delivery occurs. For services: generally the province of the recipient's business address. For intangible personal property: province where the property may be used. Interprovincial supplies require transaction-level place-of-supply determination. (SOR/2010-117)

5.4 Zero-rated supplies (ETA Schedule VI)

• Zero-rated supplies — Basic groceries (Part III), prescription drugs (Part I), medical devices (Part II), exports of goods (Part V), services to non-residents (Part V, s.5 — conditions apply), international transport (Part VII), agricultural products (Part IV), financial services to non-residents (Part IX). Zero-rated means 0% tax but full ITC eligibility on related inputs. (ETA Schedule VI)

5.5 Exempt supplies (ETA Schedule V)

• Exempt supplies — Financial services (Part VII), residential rent (Part I), health care services (Part II — but only listed services), educational services (Part III), childcare (Part IV), legal aid (Part V), public sector (Part VI). Exempt means no GST/HST charged and NO ITC on related inputs. If exempt supplies are significant → mixed-use apportionment required. (ETA Schedule V)

5.6 Input tax credits (ETA s.169)

• ITC documentation thresholds — ITCs are claimable on GST/HST paid on purchases used in commercial (taxable + zero-rated) activities. Documentation requirements (ETA Input Tax Credit Information Regulations): purchases under $30 need vendor name and amount; $30–$149.99 need vendor name, BN, date, amount, GST/HST; $150+ need all of the above plus purchaser name/address. Report on Line 106. (ETA s.169; Input Tax Credit Information (GST/HST) Regulations)

5.7 Self-assessment on imported taxable supplies (ETA s.218)

• Self-assessment on imports — When a registrant receives a taxable supply from a non-resident who did not charge GST/HST: self-assess on Line 405 and claim offsetting ITC on Line 106. Net effect zero for fully taxable registrants. This is the Canadian equivalent of EU reverse charge. (ETA s.218)

5.8 Capital personal property / passenger vehicles (ETA s.201–202)

• CCA Class 10.1 ceiling — $37,000 + tax for 2025/2026 (ETA s.201–202)
• Passenger vehicle ITC limitation — ITCs on passenger vehicles are limited by the Income Tax Act CCA ceiling (Class 10.1: $37,000 + tax for 2025/2026). For luxury vehicles, ITC is capped at GST/HST on the ceiling amount. Leased vehicles: ITC limited proportionally. Business-use percentage applies on top. (ETA s.201–202)

5.9 Blocked ITCs (ETA s.170)

• Blocked ITCs — - Club memberships (golf, fitness, social clubs) — ETA s.170(1)(a) — fully blocked - Personal expenses — ETA s.170(1)(b) — fully blocked - Gifts over $50 (except food/drink) — limited - Passenger vehicles: not blocked per se but limited to business-use proportion and CCA ceiling (ETA s.170)

5.10 Meals and entertainment — 50% rule

• 50% ITC restriction on meals and entertainment — ETA s.236(1) cross-references ITA s.67.1: the GST/HST ITC on meals and entertainment is limited to 50% of the GST/HST paid. This is not a full block — it is a 50% restriction. The 50% rule does NOT apply to: meals provided at a remote work camp, meals included in convention fees, meals provided for fundraising, or meals for which the full cost is reimbursed by the client. (ETA s.236(1); ITA s.67.1)

5.11 Change in use — capital property (ETA s.195–199)

• Change in use rule — When a capital asset changes from business to personal use (or vice versa), a deemed supply/acquisition occurs. The registrant must self-assess or claim ITC based on the FMV at the time of change. Flag for reviewer. (ETA s.195–199)

5.12 Small supplier threshold (ETA s.148)

• Small supplier threshold — $30,000 in any single calendar quarter or in four consecutive calendar quarters (ETA s.148)
• Small supplier registration rule — Below threshold: no obligation to register or charge GST/HST (but may voluntarily register). Above threshold: must register within 29 days. (ETA s.148)

5.13 Bad debts (ETA s.231)

• Bad debt recovery rule — If a registrant has previously reported GST/HST on a sale and the receivable becomes uncollectable, the GST/HST can be recovered via Line 107 (adjustment). Must be written off in the registrant's books. Recovery if the debt is later collected. (ETA s.231)

5.14 Reporting sales on Line 101

• Line 101 reporting rule — Line 101 includes all revenue — taxable, zero-rated, and exempt. It also includes GST/HST collected. This is a gross-inclusive line. Line 103 is the GST/HST collected portion.

Section 6 — Tier 2 catalogue (compressed)

6.1 Vehicle costs

Pattern: Petro-Canada, Shell, Esso, Canadian Tire (auto), car payments. Default: 0% ITC (no logbook). Question: "Do you have a vehicle logbook showing business vs personal kilometers?"

6.2 Meals and entertainment

Pattern: restaurants, Tim Hortons, Starbucks, The Keg. Default: block. Question: "Was this a business meal? If yes, 50% of the GST/HST is claimable as ITC."

6.3 Home office expenses

Pattern: utility bills, internet at home. Default: 0% ITC. Question: "Do you work from home? What percentage of your home is used exclusively for business?"

6.4 Round-number incoming transfers

Pattern: large round credit from owner name. Default: exclude as owner injection. Question: "Is this a customer payment, owner contribution, or loan?"

6.5 Incoming from individuals

Pattern: incoming from private names. Default: taxable sale at provincial HST rate, Line 101/103. Question: "Was it a sale? What was supplied?"

6.6 Interprovincial sales

Pattern: incoming from counterparty in different province. Default: rate of recipient's province. Question: "Confirm the province of the customer for place-of-supply determination."

6.7 Large purchases (potential capital asset)

Pattern: single purchase > CAD 1,000. Default: current expense on Line 106. Question: "Is this a capital asset with useful life > 1 year?"

6.8 Mixed-use phone, internet

Pattern: Rogers, Bell, Telus personal lines. Default: 0% if mixed. Question: "Is this a dedicated business line or mixed-use?"

6.9 Outgoing to individuals

Pattern: outgoing to private names. Default: exclude as draws. Question: "Was this a contractor payment, salary, refund, or personal transfer?"

6.10 Cash withdrawals

Pattern: ATM, cash withdrawal. Default: exclude. Question: "What was the cash used for?"

6.11 Rent payments

Pattern: monthly rent to landlord. Default: commercial (taxable, ITC eligible). Question: "Is this a commercial or residential lease?"

6.12 Amazon.ca purchases

Pattern: Amazon.ca, AMZN. Default: taxable domestic at HST rate. Question: "Was this a business purchase? Check invoice for GST/HST breakdown."

6.13 Stripe/PayPal incoming

Pattern: Stripe payouts, PayPal transfers. Default: sales revenue at provincial rate, Line 101/103. Question: "Are these customer payments? What province are your customers in?"

6.14 Tips and gratuities

Pattern: restaurant charges with tip component. Default: GST/HST only on pre-tip amount. Question: "Confirm pre-tip amount for ITC calculation."

6.15 US dollar transactions

Pattern: USD amounts on bank statement. Default: convert to CAD at Bank of Canada daily rate. Question: "Confirm the CAD equivalent shown on the bank statement."

Section 7 — Excel working paper template (Canada-specific)

The base specification is in vat-workflow-base Section 3. This section provides the Canada-specific overlay.

Sheet "Transactions"

Columns A–L per the base. Column H ("Line code") accepts GST34 line references (101, 103, 106, 405, etc.). Column I adds the GST/HST rate used (5%, 13%, 14%, 15%). For self-assessed imports, enter "405" in column H.

Sheet "Line Summary"

• Line Summary sheet formulas — One row per GST34 line. Column A is the line number, column B is the description, column C is the value. | 101 | Total sales and revenue | =SUM of all credit transactions (sales, zero-rated, exempt) | | 103 | GST/HST collected | =SUMIFS(Transactions!F:F, Transactions!G:G, "SALE") | | 105 | Total GST/HST and adjustments | =C[103]+C[104] | | 106 | Input tax credits | =SUMIFS(Transactions!F:F, Transactions!G:G, "ITC") | | 108 | Total ITCs and adjustments | =C[106]+C[107] | | 109 | Net tax | =C[105]-C[108] | | 405 | Tax on imported supplies (s.218) | =SUMIFS(Transactions!F:F, Transactions!H:H, "405") |

Sheet "Return Form"

• Return Form final figures — Final GST34-ready figures: Line 105 = Total GST/HST collected + adjustments Line 108 = Total ITCs + adjustments Line 109 = Line 105 - Line 108 [net tax] Line 113 = Line 109 - Line 112 [balance] Positive Line 113 → amount owing to CRA Negative Line 113 → refund claimed

Mandatory recalc step

After building the workbook, run:

python /mnt/skills/public/xlsx/scripts/recalc.py /mnt/user-data/outputs/canada-gst-hst-<period>-working-paper.xlsx

Section 8 — Canadian bank statement reading guide

Follow the universal exclusion rules in vat-workflow-base Step 6, plus these Canada-specific patterns.

RBC Royal Bank online export format. CSV export from RBC Online Banking. Columns: Account Type, Account Number, Transaction Date, Cheque Number, Description 1, Description 2, CAD$, USD$. Date format: MM/DD/YYYY. Amounts are positive for credits, negative for debits. Description 1 contains the transaction type (e.g., "POS Purchase", "Online Banking Transfer", "Direct Deposit"). Description 2 contains the counterparty/payee name.

TD Canada Trust online export format. CSV from EasyWeb. Columns: Date, Transaction Description, Debit, Credit, Balance. Date format: MM/DD/YYYY. The Transaction Description field combines type and payee (e.g., "POS W/D SHOPIFY COMMERCE INC", "INTERAC E-TRANSFER FROM JOHN SMITH"). "POS W/D" = point-of-sale withdrawal (debit). "PREAUTH PYMT" = pre-authorized payment.

Scotiabank export format. CSV from Scotia OnLine. Columns: Date, Description, Withdrawals, Deposits, Balance. Date format: DD/MM/YYYY (different from RBC/TD).

BMO export format. CSV from BMO Online Banking. Columns: Transaction Date, Description, Amount. Single amount column (negative for debits).

CIBC export format. CSV or QFX from CIBC Online. Columns: Date, Description, Debit, Credit. Date format: YYYY-MM-DD.

Common Canadian bank statement patterns

Term	Meaning
POS, POS W/D, POS PURCHASE	Point-of-sale debit card purchase
PREAUTH, PREAUTH PYMT, PAP	Pre-authorized payment (direct debit)
INTERAC E-TRANSFER	Interac e-Transfer (incoming or outgoing)
ONLINE BANKING TRANSFER, TFR	Online transfer
DIRECT DEPOSIT, DIR DEP	Direct deposit (incoming)
CRA FED, RECEIVER GENERAL	CRA tax payment
NSF, NSF FEE	Non-sufficient funds fee (bank charge — exempt)
MONTHLY FEE, SERVICE CHARGE	Bank account fees (exempt)
INTL PURCHASE, FX FEE	International purchase and foreign exchange fee
ABM W/D, ATM	Cash withdrawal

Internal transfers. Own-account transfers between client's RBC, TD, savings accounts. Labelled "online banking transfer", "TFR", or matching account numbers. Always exclude.

Self-employed draws. Transfers from business account to personal account labelled with the owner's name. Exclude.

HST on bank statement lines. Canadian invoices are GST/HST-inclusive on the bank statement. To extract the GST/HST component: Tax = Gross * Rate / (1 + Rate). Example: CAD 113.00 at 13% HST → Tax = 113 * 0.13 / 1.13 = 13.00.

Interac e-Transfers. Very common in Canada for B2B and B2C. The description shows "INTERAC E-TRANSFER FROM [name]" for incoming and "INTERAC E-TRANSFER TO [name]" for outgoing. Default treatment: incoming = potential sale (ask), outgoing = potential contractor payment or personal (ask).

Foreign currency. Convert to CAD using the Bank of Canada daily exchange rate. Note the rate in column L.

Section 9 — Onboarding fallback (only when inference fails)

9.1 Entity type

Inference rule: "Inc", "Corp", "Ltd" = corporation; personal name = sole proprietor. Fallback: "Are you a sole proprietor, partnership, or corporation?"

9.2 GST/HST registration

Inference rule: if asking for a GST34, they are registered. Fallback: "Are you registered for GST/HST? What is your Business Number (BN)?"

9.3 Province

Inference rule: bank branch, counterparty mix, area codes in descriptions. Fallback: "What province is your principal place of business?"

9.4 Filing period

Inference rule: transaction date range. Fallback: "Is this for a monthly, quarterly, or annual period? What are the period dates?"

9.5 Accounting method

Inference rule: if no mention of Quick Method, assume regular. Fallback: "Are you using the regular method or the Quick Method (election GST74)?"

9.6 Industry

Inference rule: counterparty mix. Fallback: "In one sentence, what does the business do?"

9.7 Employees

Inference rule: CPP/EI/payroll outgoing. Fallback: "Do you have employees?"

9.8 Exempt supplies

Inference rule: financial/medical/educational/residential rental income patterns. Fallback: "Do you make any GST/HST-exempt supplies?"

9.9 Interprovincial sales

Inference rule: counterparties in multiple provinces. Fallback: "Do you sell to customers in provinces other than your own?"

9.10 Prior period balance

Not inferable. Always ask. "Do you have any GST/HST balance owing or credit from the previous period?"

Section 10 — Reference material

Validation status

This skill is v2.0, rewritten in April 2026 to align with the three-tier OpenAccountants architecture. Canada-specific content (rates, line mappings, ITC rules, place of supply) is based on the Excise Tax Act as of April 2026 including the Nova Scotia HST rate change to 14% effective April 1, 2025.

Sources

Primary legislation:

1. Excise Tax Act (R.S.C., 1985, c. E-15), Part IX — s.123 (definitions), s.148 (small supplier), s.165 (imposition), s.169 (ITCs), s.170 (restrictions), s.218 (self-assessment), Schedule V (exempt), Schedule VI (zero-rated)
2. Input Tax Credit Information (GST/HST) Regulations — documentation thresholds
3. Place of Supply (GST/HST) Regulations (SOR/2010-117)
4. New Harmonized Value-added Tax System Regulations

CRA guidance: 5. GST34 form and guide (RC4022) — canada.ca 6. Quick Method guide (RC4058) 7. GST/HST Memoranda Series — various technical interpretations 8. GST/HST Info Sheets — place of supply, ITCs, specific industries

Other: 9. Bank of Canada daily exchange rates — bankofcanada.ca 10. CRA My Business Account — business registration verification

Known gaps

1. Quebec QST is entirely refused — a separate skill is needed.
2. BC PST, SK PST, MB RST are refused — separate provincial skills needed.
3. Quick Method is refused — could be added as a v2.1 feature.
4. First Nations exemptions are refused — specialized knowledge required.
5. Real property self-supply rules (s.191) are refused — too fact-sensitive.
6. The NS HST rate changed to 14% on April 1, 2025 — verify no further rate changes.
7. Interprovincial place-of-supply for digital services is evolving — flag for reviewer if significant.
8. The s.218 self-assessment landscape is changing as more non-residents register voluntarily — always check the invoice first.

Change log

• v2.0 (April 2026): Full rewrite to align with three-tier OpenAccountants architecture. 10-section Malta v2.0 structure adopted. Supplier pattern library added (Section 3). Six worked examples added (Section 4). Tier 1 rules compressed (Section 5). Tier 2 catalogue added (Section 6). Excel template added (Section 7). Bank statement guide with RBC/TD/BMO/CIBC formats added (Section 8). Onboarding moved to fallback (Section 9).
• v2.0 (prior, April 2026): Previous version with inline tier tags. Superseded.

Self-check (v2.0)

1. Quick reference at top with rate table and conservative defaults: yes (Section 1).
2. Supplier library as literal lookup tables: yes (Section 3, 15 sub-tables).
3. Worked examples (hypothetical ON IT consultant): yes (Section 4, 6 examples).
4. Tier 1 rules compressed: yes (Section 5, 14 rules).
5. Tier 2 catalogue compressed: yes (Section 6, 15 items).
6. Excel template with mandatory recalc: yes (Section 7).
7. Onboarding as fallback only: yes (Section 9, 10 items).
8. All 8 Canada-specific refusals present: yes (Section 2, R-CA-1 through R-CA-8).
9. Reference material at bottom: yes (Section 10).
10. Self-assessment s.218 explicit: yes (Section 3.8 + Section 5.7 + Example 1).
11. Meals 50% rule explicit: yes (Section 5.10 + Example 3).
12. Vehicle logbook requirement explicit: yes (Example 6).
13. Place of supply rules documented: yes (Section 5.3).
14. HST rate table complete with NS 14%: yes (Section 1).
15. Zero-rated vs exempt distinction explicit: yes (Section 5.4–5.5).

End of Canada GST/HST Return Skill v2.0

This skill is incomplete without the companion workflow file loaded alongside it: vat-workflow-base v0.1 or later (Tier 1, workflow architecture). Do not attempt to produce a GST34 without it loaded.

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.