How to Complete a Canadian PST Return

Canadian businesses that generate sales may be required to file annual, semi-annual or monthly PST (Provincial Sales Tax, also called Retail Sales Tax) returns to Canada Revenue Agency (CRA), depending on whether the province the business operates in has PST. The following information is based on the Ontario PST form.

Steps

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    The CRA will send PST filing forms on a regular basis, based on whether you file annually, semi-annually, or monthly. Review the form to ensure the business name, number and address are correct. Make note of the due date and reporting period as listed in the top right corner.
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    Print a trial balance for the reporting period.
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    Check any balance forward amounts match the ending amounts from the trial balance used in your last return. Investigate any discrepancies.
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    Calculate your total revenue from sales.
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    Calculate the expected PST amount collected as the Total Sales Revenue x current PST rate. This amount should match your actual PST collected amount.
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    Complete the working copy of the PST form:
    • Line 1 - Total Sales rounded to the nearest dollar.
    • Line 2 - Total PST collected.
    • Line 3 - Total PST amount payable used by your business.
    • Line 4 - Current penalty. If you file past the deadline listed on the form, the penalty is 10% on line 2 and 5% of line 3.
    • Line 5 - Compensation (Rebate amount) calculated based on amount on line 2.
      • If amount is $20.00 or less, line 5 equals line 2.
      • If $20.01-$400.00, line 5 equals $20.00.
      • If $400.01 or more, line 5 equals 5% of line 2, up to a maximum of $1500 for the year.
    • Line 6 - Total of line 2 + line 3 + line 4 - line 5. This is total amount payable.
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    Complete the remittance portion of the PST form and submit to the provincial Ministry of Revenue with the cheque.

Warnings

  • Forms may differ between provinces as the PST rate is regulated and collected provincially.

Article Info

Categories: Accounting and Regulations | Taxes and Fees