Look at this info about GST increase in 2023-2024 in Canada. When will they do it? You can find out in this article. It talks about the GST increase and has important info.
GST Increase 2023-2024
GST in Canada is a tax on stuff and services you buy. It is 5% right now. Some places combine it with their own taxes. You pay for it when you buy things. The Government might change it in 2023-2024, but they will tell us more later.
How does the GST Work
If you are a GST Registrant, you add GST to the things you sell and report it. However, not everything has GST. Some stuff is tax-free, and customers do not pay GST on those. However, you can get some money back for the GST you paid when you bought things for tax-free stuff.
So, if it is taxable, add GST, and you can get some money back. If it is tax-free, do not add GST, and you cannot get your money back. When you do your taxes, subtract the money you get back from the GST you added.
Current GST Rates in Canada
In Canada, some places mix their own tax with GST, so they have different rates. However, some just have the 5% GST, no mix.
|Province||On or after October 1, 2016|
|Prince Edward Island||15%|
|Newfoundland and Labrador||15%|
If you want to know the rates in your area, go to the CRA website.
Who Needs to Sign Up for GST
If you sell things in Canada and you are not a small seller, you should sign up for GST. If you sign up for GST, you also get HST.
You do not need to sign up if:
- You’re a small seller.
- You are not from Canada and do not do business here.
- You only sell property and nothing else.
Different Types of Supplies
Taxable Supplies: Some things and services you buy in Canada have GST/HST. This includes clothes, car repairs, hotel stays, and more.
Zero-rated Supplies: Some things have a 0% tax rate. You do not pay GST on them, but you can get back the tax you paid when you bought stuff for them. This includes items like feminine hygiene products and some groceries.
Exempt Supplies: Things like legal help, music lessons, and some ferry rides do not have GST. You can find a full list on the Canadian Government’s website.
When Will GST Change in Canada
Right now, we do not know if the GST rate will go up or down in Canada. It is 5% at the moment, and it might stay the same next year too. If they do change it, the Canadian Government will tell us.
If they raise the GST, prices for things might go up, but you might get more GST Credit. If they lower it, some things might get cheaper.
They usually tell us about GST changes at the start of the next tax year. GST used to be 7%, but they lowered it to 5%. If nothing changes, it will stay at 5%.
How You Get GST/HST Payment
If you have direct deposit at your bank, it is simple. The money will show up in your bank account as “GST/HST tax credit” or “Canada FPT.”
If you choose to get a check, they will send it by mail, but it takes longer. It should reach you within ten workdays.
When Does GST/HST Get Rechecked
Sometimes, things in life change. When that happens, the CRA looks at your payment again. These are the times it might change:
- If your income or your family’s income changes.
- If you get married or divorced.
- If you have more or fewer kids.
- If someone in your family passes away.
Do not wait! When these changes happen, it is a good idea to tell the CRA right away. They want to keep things accurate. After that, the CRA will send you a statement with the new payment amount.