Ontario Business HST payment?

I am trying to understand the Quick method of HST payment for small businesses (Ontario) from what I understand it is 7.8% on the first $30,000 and then 8.8% on the rest meaning you do not pay the full 13% collected. If this is correct this brings to light a big mistake I made on last years taxes as I pad the full 13%. So what are my options if I did overpay last year? Detailed info and help would be appreciated? Thanks

Update:

No that's what I'm saying I did not claim any ITC's nor did I choose the simplified(Quick) method which would reduce my HST payable to the government. And from what I see in the quick method for Ontario for services is like I stated above the 7.8% and 8.8% which essential means that I over paid by at least 3.2% since I paid the full 13%.

Update 2:

So what are my options from what I found I have 2 years to claim an overpayment and it has been only 1 - Can I just get this applied to the HST I owe this year.

Who should I contact to get help with this matter?

thanks

Update 3:

Thank you for the info - the only thing is im pritty sure I already elected to use the quick methode as I filed online so me claiming last years ITC's I dont think is an option - I think there is a way to file/claim the mistake, guess I will have to call a CGA or CA for some help or maybe even CRA

2 Answers

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  • Fred S
    Lv 7
    8 years ago
    Favorite Answer

    What do you mean "paid the full 13%"? Didn't you CHARGE your customers 13%, and then remitted that to the government? And didn't you deduct any HST you paid to your suppliers?

    With HST, you have two choices:

    1. Standard: Remit what you collected from your customers, minus the HST you paid to your suppliers (called ITCs in their parlance).

    2. Quick: Remit the specified percentage of your sales. With this method, you don't have to do detailed accounting of HST in and HST out, but you don't get to deduct ITCs.

    Essentially, the Quick method allows you do assume that ITCs were 5.2% of sales.

    Re additional details: Yes, it sounds like you overremitted. The easiest fix is just to claim all your ITCs on your next remittance. You can then switch to the quick method after that.

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