TAX NEWS - January 2010

Canada: Businesses to file their goods and services tax / harmonized sales tax (GST/HST) returns electronically

The Canada Revenue Agency (CRA) announced on 4 January 2010 that some businesses will be required to file their goods and services tax/harmonized sales tax (GST/HST) returns electronically. Harmonized sales tax regimes will come into effect in British Columbia (British Columbia Harmonized sales tax - BC-HST) and Ontario (Ontario Harmonized sales tax - OHST) on 1 July 2010.

After this date, businesses that meet at least one of the following criteria will be required to file GST/HST returns electronically: (1) annual GST taxable sales are greater than CAD 1.5 million (except for charities); (2) input tax credits are restricted on the provincial component of the BC-HST or OHST; or (3) new home builders and the HST transition rules apply to some or all of the homes under construction.