How to Prepare for Filing Your GST/HST Return for Your Canadian Etsy Business


Hi, it's Kathy from FitKittyTries! Today, I'm bringing you a detailed webinar-style video on preparing to file your GST/HST return for your registered Canadian business. Remember, this isn't about your income tax, which is due on April 30th; this is specifically for your GST/HST return, which is due on June 15th.

Understanding Your GST/HST Obligations

If you're uncertain about your GST/HST registration status or whether you need to register, visit my blog for detailed guides on registration requirements and processes.

Preparing for Your GST/HST Return

Regardless of whether you have a bookkeeper, accountant, or you're doing it yourself, you need to:

1. Organize Receipts: Gather all receipts and sales reports.
2. Track Revenue: Keep track of all sales and the GST/HST collected.

Tip: Regularly updating your records monthly or quarterly can ease the workload significantly.

Reporting GST/HST Collected

The first part of your GST/HST return involves reporting the tax you collected from sales. Etsy does not provide tax reporting tools for Canadian sellers, so you need to manage this manually.

Using Spreadsheets for Easy Calculation

I've created a spreadsheet to help determine the GST/HST included in your pricing, depending on the province or territory. Here’s how to use it:

1. Download Sales Data: Go to Settings > Options > Download Data > Orders Report for the year.
2. Copy and Paste Data: Copy the downloaded data and paste it into the designated tab in the spreadsheet.
3. Analyze the Results: The spreadsheet will automatically calculate the GST/HST collected per province and provide total amounts.

Reporting Expenses and GST/HST Credits

The second part involves reporting expenses and the GST/HST paid on them, which can be used as a credit against the GST/HST you owe.

Organizing Expense Receipts

Ensure you find receipts for all expenses, noting which include GST/HST. Common expenses include:

- Etsy Fees: Etsy charges GST/HST on its fees.
- US Services: Services like Canva often do not include GST/HST.
- Print on Demand Services: For example, Printify charges GST/HST on Canadian sales.

Using Spreadsheets for Expense Tracking

To simplify this process, use my Etsy Year-to-Date Balance Sheet, which includes a GST column. You can manually enter expenses and the GST/HST paid.

1. Monthly Tracking: Update your expenses and GST/HST paid monthly.
2. Summary Invoices: Opt for summary invoices for services like Printify to streamline tracking.

Final Steps and Tools

For those overwhelmed by manual entry, consider software like QuickBooks or FreshBooks, which can automate much of this process by categorizing expenses and tracking GST/HST paid.

Additional Resources

For more detailed instructions and tools:
- Spreadsheets: Available on my Etsy store at affordable prices.
- Blog and YouTube: Visit my blog and subscribe to my YouTube channel for more tutorials on managing small business taxes and other related topics.

Conclusion

By staying organized and utilizing the right tools, you can efficiently manage your GST/HST returns. If you have questions or need further clarification, feel free to leave a comment below. 

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