Should You File GST Annually or Quarterly?

When you register for a GST/HST number in Canada, one of the first questions you’ll face is how often you want to file — annually, quarterly, or monthly.

Choosing the right frequency can make a big difference to your cash flow, bookkeeping routine, and stress level come tax season. Let’s break it down so you can make an informed decision.

1. What Determines Your Filing Frequency?

Your GST/HST filing frequency depends mainly on your annual taxable sales:

• $1.5 million or less → You can choose to file annually (default).

• Between $1.5 million and $6 million → You must file quarterly.

• Over $6 million → You must file monthly.

However, even if you qualify for annual filing, you can elect to file more often if it fits your business better.

2. Annual Filing – Simpler for Small Businesses

Best for: Sole proprietors and small businesses with stable revenue and fewer transactions.

Pros:

• Less paperwork — only one return per year.

• Easy to manage if your bookkeeping is up to date.

• Perfect if most of your sales are local and predictable.

Cons:

• You’ll hold onto GST/HST collected all year — make sure you don’t accidentally spend it!

• Bigger payment at the end of the year, which can affect cash flow.

💡 Tip: Open a separate GST/HST savings account and move your tax portion there each month.

3. Quarterly Filing – Better for Cash Flow Control

Best for: Businesses with regular sales and expenses.

Pros:

• Smaller, more manageable payments throughout the year.

• Keeps your records fresh and up to date.

• Reduces the risk of year-end surprises.

Cons:

• More frequent bookkeeping and CRA submissions.

• Slightly higher admin work, especially without accounting software.

4. How to Choose What’s Right for You

Ask yourself:

• Do you have consistent monthly income and expenses? → Quarterly may fit better.

• Do you prefer minimal paperwork and simple year-end filing? → Annual could be fine.

• Do you struggle with cash flow management? → Quarterly filing spreads the load.

If your business is growing fast, consider switching from annual to quarterly before year-end. CRA allows you to change your filing frequency — just notify them in advance.

5. Bottom Line

Choosing the right GST/HST filing frequency isn’t just about convenience — it’s about keeping your business cash flow healthy and compliant.

If you’re unsure which option suits your business, talk to a tax professional. At Tiki Tax, we help small business owners choose the most efficient filing schedule and handle all the paperwork for you.