HST Installment Payments

GST/HST funds are collected in trust

GST/HST funds are collected in trust


Can I pay an installment on a current Q2 HST payable bill rather than the
whole amount?

I have always attached full payment owing to the quarterly return
but I wonder if there are any installment options.

My quarterly bill Q2 for HST is $9,100.

Thanks for your time.


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Hi Kevin,

As a business owner, when you collect GST/HST, you are doing so in trust for the government.

The net GST/HST collected must be remitted to the government by your assigned deadline to avoid interest and penalty charges.

You can make installments on your account ... but advance installments.

As the trust amounts have increased due to HST, one option you should consider is switching your reporting period to monthly if you meet the annual sales criteria.

If not, as a second option consider making monthly (or weekly) installments in advance of your reporting periods. This way very little, if anything, would actually be due when you submit your quarterly report.

A third option is to open a separate savings account and deposit GST/HST collected to that account. Segregating the funds collected in trust would reduce the temptation to use the funds to cover personal or business expenses.

When GST/HST registrants don't remit the net GST/HST collected, the CRA has the power, through federal legistation, to seize and sell assets, garnishnee your accounts or assess directors personally if you are a corporation.

But ... none of the above options help you out of your current situation.

You may want to speak with CRA.

I don't know all your details or situation but consider filing your return on time to avoid a late filing penalty and paying as much of the $9,100 as you can. Then payoff the remaining amount in installments as quickly as you can ... get a loan if you can.

Once CRA starts ganisheeing your bank accounts, it takes years to get your life back on track. While this wouldn't happen immediately, your amounts owing are unlikely to get smaller.

Talk with your accountant or CRA to see what your options are. Don't ignore this as that won't make it get any better.

P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.

Comments for HST Installment Payments

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Aug 10, 2011
HST / GST input credits
by: Maggie

Hi hope you are recording all the HST or GST you are paying on purchases.

One client of mine didn't know he could do this. In his first year he carefully paid all the HST he collected.

Once we entered all his expenses we can submit them this year (rather than amend a previous return) as you have four years to claim input credits.

Aug 10, 2011
How to claim missed ITCs
by: Lake

Thanks Maggie! That is a very good point you make.

Kevin can read more on how to claim missed input tax credits (GST/HST paid on business expenses) if he missed claiming his credit on his return(s) by clicking here.

Apr 01, 2014
HST Payment not captured in Return
by: Michelle

Hi, I made an HST payment in 2014 for 2013 (annual filer) prior to filing. I think I did it correctly using the "HST Installment" Item attached to the HST payable account.

When I did my 2013 return, it only captured the installments made in 2013. The 2014 installment stayed in 2014.

First, how do I apply the payment to the new payable amount? And second, how to I make a payment on the previous period prior to filing & have it show up in the return?

Many thanks!

(I hope I explained this properly!)

Apr 03, 2014
HST Installment
by: Lake

Hey Michelle,

I'm sure you've explained it properly. I just need to know if you are talking about CRA online filing, QuickBooks Desktop, or QuickBooks Online.

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