Should You File GST Annually or Quarterly? A Comprehensive Guide

When you register for a GST/HST number in Canada, the CRA will assign you a filing frequency — annually, quarterly, or monthly.

But did you know you can often choose how often to file? The right option depends on your sales volume, cash flow, and bookkeeping habits. Here’s how to decide what works best for your business.

1. How CRA Determines Your Filing Frequency

Your annual taxable sales (before expenses) usually decide how often you must file:

• $1.5 million or less: Default is annually (you can choose quarterly or monthly).

• Between $1.5 million and $6 million: Must file quarterly.

• Over $6 million: Must file monthly.

If you qualify for annual filing, you can still elect to file quarterly to manage cash flow more effectively.

2. Annual Filing – Fewer Returns, Simpler Administration

Best for: Small or part-time businesses with consistent income and good cash management.

Pros:
✅ Only one GST return per year — less paperwork.
✅ Easier to handle if your bookkeeping is well organized.
✅ Ideal for businesses that don’t need frequent CRA refunds.

Cons:
⚠️ You collect GST all year and remit it once — meaning you need discipline not to spend that money.
⚠️ A large year-end payment can strain cash flow.

💡 Tip: Open a separate bank account for GST/HST collections to avoid mixing funds.

3. Quarterly Filing – Smoother Cash Flow, More Control

Best for: Businesses with steady monthly sales and regular expenses.

Pros:
✅ Easier cash flow management — you remit smaller amounts more often.
✅ Keeps your books updated throughout the year.
✅ Reduces year-end stress.

Cons:
⚠️ Slightly more administrative work (four filings per year).
⚠️ Can be overwhelming without accounting software or a bookkeeper.

💡 Tip: Set a calendar reminder to file on time — missing a deadline can trigger penalties or interest.

4. How to Choose What’s Right for You

Ask yourself:

• Do I want fewer CRA filings each year? → Annual filing.

• Do I struggle to save collected GST for year-end? → Quarterly filing.

• Do I regularly expect GST refunds? → Quarterly may help you get refunds faster.

If your business is growing fast, consider switching to quarterly filing before the next year begins. CRA lets you change your filing frequency — just notify them in writing or online through your My Business Account.

5. The Bottom Line

Choosing between annual or quarterly GST filing comes down to balancing simplicity vs. cash flow management.

If your business is small and organized, annual filing keeps things simple. But if you prefer smaller, manageable payments and want to stay on top of your books, quarterly filing is the smarter choice.

At Tiki Tax, we help small business owners understand CRA rules, choose the best filing schedule, and handle their GST/HST returns — accurately and on time.