GST/HST instalments for annual filers can surprise Canadian freelancers who expect to make one payment with one annual return. Filing annually describes how often you submit a return. It does not always mean you can wait until year-end to pay. Once your net tax is high enough, the CRA may require quarterly instalments during the year.
Here is the practical rule, the calculation, and the due dates for a sole proprietor or small business with an annual reporting period.
GST/HST instalments for annual filers: who has to pay?
You may have to make quarterly instalments if you are an annual filer and your net tax for the previous fiscal year was $3,000 or more. You will generally need them when your net tax for the current year will also be at least $3,000.
Net tax is not your revenue and it is not the total GST/HST you collected. It is broadly the tax you collected or had to collect, minus eligible credits and adjustments. If you need a refresher on those credits, read our guide to GST/HST input tax credits.
This rule is different from quarterly filing. An annual filer making instalments still submits one annual return; the quarterly payments are prepayments toward that return. Compare the schedules in our quarterly vs annual GST/HST filer guide before choosing or changing a filing frequency.
How much is each instalment?
The simplest method is to divide your previous year's net tax by four. If last year's net tax was $4,800, your four equal instalments would be $1,200 each. The CRA may calculate this amount for you, but you remain responsible for paying on time.
If you reasonably expect this year's net tax to be lower, you can instead estimate the current year and pay one-quarter of that estimate each quarter. For example, an estimated $3,200 of net tax produces four $800 instalments. Be careful: if you estimate too low and pay less than you should have, the CRA can charge instalment interest on the shortfall.
When are GST/HST instalments due?
Each payment is due within one month after the end of your fiscal quarter. For a business with a December 31 fiscal year-end, the usual dates are:
- January 1 to March 31: due April 30
- April 1 to June 30: due July 31
- July 1 to September 30: due October 31
- October 1 to December 31: due January 31
A non-calendar fiscal year uses different dates, but the one-month rule is the same. If a due date falls on a weekend or public holiday recognized by the CRA, payment is considered on time when received on the next business day. Confirm your exact dates in CRA My Business Account. Our overview of GST/HST remittance deadlines explains the separate return and final-payment deadlines.
What if your first reporting year was short?
A first fiscal year shorter than 12 months has a special calculation. Even if its net tax was below $3,000, the CRA annualizes it: divide the net tax by the number of days you were registered in that fiscal year, then multiply by 365. If the result is at least $3,000 and your second-year net tax will also reach $3,000, instalments may be required in year two.
This catches businesses that register partway through a year. Do not assume a small first return automatically keeps you outside the instalment rules.
How instalments appear on your annual return
Record every payment and confirmation number. On your annual GST/HST return, report the instalments you paid on line 110. If your instalments are less than your final net tax, pay the balance by your normal deadline. If you paid too much, you can claim the difference as a refund.
Instalments do not replace bookkeeping. Keep tracking tax collected and eligible credits so your current-year estimate stays realistic. You can pay through CRA My Payment, online banking, or another payment method accepted by the CRA; use the correct GST/HST account and reporting period.
A simple routine that avoids surprises
- Confirm whether last year's net tax reached $3,000
- Choose the prior-year amount or a careful current-year estimate
- Schedule all four due dates at the start of the fiscal year
- Save payment confirmations and reconcile them before filing
- Review your estimate if revenue or expenses change materially
Before instalments become relevant, you first need to know when GST/HST registration applies. HST Hero is a free Canadian tool that tracks taxable revenue against the $30,000 small supplier threshold. Use it for registration timing, then use your books and CRA account to manage instalments after registration.
The key distinction is simple: you may file once a year but still pay four times. Check the $3,000 net-tax test early and put each instalment date on your calendar before the CRA starts charging interest.