Enhance Your Financial Reporting
GST Saskatoon Services
Are you looking for GST Saskatoon Services tailored to your unique business needs?
Since 2001, Murray, Sen & Associates, has been offering businesses in Saskatoon and beyond comprehensive GST services that range from compliance to tax planning, GST filing, GST tax credits, audit assistance, and more.
Book an appointment NOW! or CALL: 306-653-7800. Our dedicated GST Saskatoon experts are waiting to assist you. Keep reading to learn more about GST from the definition to the benefits, calculating GST, and more.
GST: What is It?
GST or (Goods and Services Tax) is a VAT (value-added tax) introduced by the Canadian government in 1991. The tax applies to almost all goods and services at a rate of 5%. However, when it was introduced, the GST tax rate stood at 7%. The tax was meant to replace MST (manufacturer’s sales tax) which was charged at the rate of 13.5% (1).
In some provinces in Canada the GST has been combined with a local tax (provincial sales tax or PST) to form one harmonized sales tax known as HST. These provinces include New Brunswick, Nova Scotia, Labrador, Newfoundland, Prince Edward Island, and Ontario.
How Much is GST In Saskatchewan?
In cities like Saskatoon in Saskatchewan, both GST and PST exist and are charged at the rate of 5% and 6%, respectively.
You may be wondering if the GST tax rate is all you need to know as a Saskatoon business owner. Well, no. Knowing the tax rate is just the starting point, you need to know how to calculate GST and other applicable taxes like PST. You also need to know which goods and services are exempt from GST. What’s more, you need to file your taxes periodically as required (mainly dependent on your business’s gross revenue).
Herein lies the importance of GST Saskatoon services. We help our clients do all the above and more (including securing GST tax credits, ensuring GST tax compliance, and handling audit appeal processes in case you are audited and fined).
Benefits of GST
GST wasn’t simply introduced to increase the cost of goods and services. Understanding the benefits GST offers to the Canadian economy is critical to helping business owners embrace and comply with the tax.
The tax has some notable benefits, such as:
- Revenue Generation
GST is a primary revenue generator for the Canadian Government. The tax accounts for approximately 11.5% of all federal government revenue (2). A consistent flow of GST revenue is critical for maintaining economic stability in Canada and preventing excessive government debt.
- Improve Tax Collection Efficiency
As a value-added tax, GST was introduced to ensure everyone contributed to funding public services like education, healthcare, and infrastructure. Since GST is charged on almost all goods and services consumed in Canada, it ensures everyone has a chance to contribute tax dollars to important public services.
- Fair Taxation
GST is a consumption tax that is charged on goods and services purchased and not on income earned. This makes the tax more broad-based/equitable since it applies to everyone regardless of a person’s income level. The nature of GST also makes the tax less likely to be evaded when compared to taxes charged on income. GST is also collected at points of sale ensuring everyone pays their fair share.
- Harmonization Benefits
GST isn’t a Saskatchewan tax, it is a national tax applied uniformly across every province/territory in Canada. The harmonized nature of the tax ensures it has lower administrative costs for both businesses and consumers (since it’s managed by one tax system). Harmonization reduces the need to establish multiple tax compliance and collection mechanisms.
- Competitive Advantage
As mentioned, GST is 5% only which is a very competitive rate for a consumption tax when compared to other countries. The low GST rate helps the Canadian government generate revenue while still ensuring the cost of goods and services stays competitive even after other taxes are applied. The competitive tax environment also keeps Canada competitive as a destination for foreign direct investment.
- Revenue for Social Programs
Part of GST revenue is used to fund income support, affordable housing, childcare, and other important social programs that boost the quality of life Canadians enjoy in all provinces/territories.
GST for Businesses in Saskatoon: Registration, Collecting, Filing and Remitting GST
GST Registration in Saskatoon
Businesses that qualify to collect/charge and remit GST must register with the CRA (Canada Revenue Agency). Registration is mandatory for most businesses but there are special guidelines for certain types of businesses i.e., commercial ride-sharing drivers, non-residents, public service bodies, charities, etc.
Find out if you must register for a GST account.
Charging and Collecting GST Tax in Saskatoon
GST doesn’t apply to zero-rated supplies such as basic commodities like groceries, this is regardless of the province in question. For taxable supplies, the GST rate is 5% in Saskatchewan and other provinces like British Columbia with no HST tax. You need a GST calculator to calculate the tax easily.
Goods And Services Tax Calculator
On invoicing, there are requirements that must be met: you must give customers specific information in their invoices, receipts, and other business papers used when providing taxable goods and services. GST must also be remitted to the CRA after collection. A GST return also needs to be completed and filed. Businesses that fail to file returns face penalties.
Handling GST tax matters can be a daunting task. Trust GST Saskatoon services experts at Murray, Sen & Associates to assist with GST calculations, collections, remittance, and maintaining records.
GST Waiver
If you don’t handle GST matters carefully, you can face stiff penalties. While those penalties can be waived on specific circumstances, you need to understand the requirements and process.
Talk to our GST services experts in Saskatoon to know if the CRA can waive your penalty. We can also assist in claiming GST rebates, provide information on GST for businesses in the digital economy, and more. CALL: 306-653-7800 or Visit us in person (Google Maps).
Ready to streamline your GST compliance and maximize your financial advantages?
Don’t let GST complexities hinder the growth of your business. Let the seasoned experts at Murray, Sen & Associates handle the intricacies of GST for you. From ensuring compliance to optimizing your tax benefits, we’re here to support every aspect of your GST needs. Book your consultation today or call us at 306-653-7800 to learn more about how our dedicated GST Saskatoon services can keep your business thriving and compliant.