Step-by-Step Guide: Filing HST Returns for BC Freelancers
Freelancers in British Columbia who earn over CAD 30,000 must file GST/HST returns as part of their legal tax obligations. Yet, many independent professionals struggle with what to report, how to claim credits, or when to file.
This BC freelancer tax guide breaks down the entire HST filing process, including tools, methods, and CRA rules to follow. With insights from Bizincs, you’ll learn how to manage HST returns smoothly and confidently.
What is HST, and Who Must File?
The Harmonized Sales Tax (HST) combines the federal Goods and Services Tax (GST) of 5% with the Provincial Sales Tax (PST) of 7%, where applicable. While BC operates on a GST and PST model (not full HST), self-employed professionals still need to collect and remit the 5% GST and file an HST Return for self-employed individuals once their gross revenue exceeds CAD 30,000 in four consecutive calendar quarters. Filing a GST/HST return is required even when no tax is payable, known as a nil return. Under the new CRA guidelines, it must be submitted electronically.
Mandatory Filing Triggers
- Earning over $30,000 annually (total worldwide taxable sales)
- Voluntarily registered to claim Input Tax Credits (ITCs)
- Registered as a business for CRA tax purposes
Steps to Register for GST/HST in Canada
You’ll first need to register your business and open a GST/HST account with the CRA.
- Go to the CRA’s Business Registration Online portal.
- Enter your business information, including your legal name, address, Business Number (BN), and type of business.
- Select GST/HST as one of your program accounts.
- Choose a reporting frequency: annual, quarterly, or monthly.
- Get your 9-digit Business Number (BN) with an extension like 12345 6789 RT0001.
Step-by-Step Guide to Filing HST Returns
Whether you file annually or quarterly, your process will look similar. Here’s how to file HST Canada return with CRA:
Step 1: Keep Track of Your Sales and HST Collected
- Maintain digital records of each sale and the associated GST collected.
- Save client invoices, especially for taxable supplies and services.
- Use invoicing tools that calculate GST automatically.
Step 2: Calculate Input Tax Credits (ITCs)
- Review business purchases and operating expenses.
- Record GST you paid on items like supplies, subscriptions, or travel.
- Deduct eligible GST through Input Tax Credits to lower your payable amount.
Step 3: Choose a Filing Method
You have several options, but electronic filing is now mandatory for most. As per CRA’s official filing page:
Approved Filing Methods:
- GST/HST NETFILE – Using CRA access code
- Third-party software – Must be CRA-certified
- Online Banking – Through your financial institution
- TELEFILE – By phone (for small businesses)
- Paper Filing – Not recommended unless explicitly allowed
Step 4: Complete the GST/HST Return Form
You will need the following details:
| Line | What to Report |
| Line 101 | Total sales and other revenue |
| Line 103 | GST collected on sales |
| Line 106 | GST paid on purchases (ITCs) |
| Line 108 | Net GST payable or refundable |
The form calculates your refund or remittance based on the difference between the collected GST and ITCs.
Step 5: Submit and Remit
- Submit the return via your chosen method
- Pay the net amount (if owed) before the due date to avoid interest or penalties
- You can pay online via CRA’s My Payment portal, by bank transfer, or via cheque
Check Out: Step-by-Step Guide to Filing Your First Canadian Tax Return as a Newcomer
Filing Deadlines for Freelancers
Your filing frequency will be set during registration but can be updated via CRA.
| Type of Filing | Deadline |
| Annual (most common for freelancers) | Return due June 15, Payment due April 30 |
| Quarterly | One month after each quarter ends |
| Monthly | One month after the month-end |
Common Mistakes to Avoid
Even many practising freelancers miss out on very simple yet very important requirements when applying for GST returns. However, the CRA insists that filing must be made electronically, and late filing may attract surcharges. Keep an eye out for the following:
- Failing to file nil returns in periods when there were no activities
- Forgetting that electronic filing is a requirement
- Not claiming allowed ITCs for expenses
- Paying taxes after submitting the return
Check Out: How to file corporate taxes in Canada
Final Tips for BC Freelancers
Developing habits around good bookkeeping and reminders will serve to minimize penalties from your end. Here is some expert advice:
- From day one, keep track of sales/expenses using accounting tools.
- Digitally store all invoices, receipts, and business documents.
- Set calendar reminders for return and payment due dates.
- Hire a tax advisor if you have complicated deductions or sources of income.
Conclusion
Knowing how to file GST/HST as a freelancer in BC ensures your compliance, helps avoid penalties, and lets you utilize whatever tax credits are available. With clear records, consistent filing, and awareness of CRA deadlines, your freelance business can grow without tax-related roadblocks.
If you’re looking for a simple, reliable way to stay on top of returns and documents, Bizincs can help you stay organized while focusing on what matters most.
FAQs
- Do I need to file an HST return if I earned below CAD 30,000?
No, unless you voluntarily registered. If you are registered, even a zero-tax period requires a return.
- What happens if I miss my filing deadline?
CRA may charge late fees and interest. Frequent non-compliance can trigger audits or account suspensions.
- Can I change my reporting frequency later?
Yes. You can request a change via CRA’s My Business Account or by calling their business inquiries line.
