Fiscal information

Do you know how to correct an uncollected or claimed GST/QST amount on a previously filed GST/QST return?

June 22, 2023

The ETA and the QTA do not provide for the correction in the current reporting period of an amount of GST/QST collectible in a previous reporting period. In addition, certain GST/QST adjustments are required to be made within a reporting period specified in the Act. 

There are 3 examples of specific retroactive corrections in the table to my right. 

Examples of specific retroactive GST/QST adjustments

  1. GST/QST not collected in a previous reporting period

For example, if you forget to collect GST and QST on taxable income invoiced in March that should have been remitted on the March GST/QST return, you cannot remit it on the December GST/QST return.  

  1. GST/QST adjustment for a credit note issued in a reporting period.

GST/QST credits must be claimed in the reporting period in which the credit note is issued. 

  1. GST/QST overpayments on income in a previous reporting

An application for a refund of tax paid or remitted in error under section 261 of the ETA may be made within 2 years after the amount was paid. 

There are various options available to make the necessary corrections to minimize interest and penalties and comply with the Act.

For the first 2 examples, you can file amended GST/QST returns for the reporting period in question. 

In some situations, it may be advantageous to use the voluntary disclosure program to avoid penalties and limit interest. 

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Do you know how to correct an uncollected or claimed GST/QST amount on a previously filed GST/QST return?