Has the GST remittance rate changed for small businesses using the quick method of accounting?
Yes. For reporting periods beginning on or after July 1, 2006, the remittance rate drops from 2.5% to 2.2% for businesses that purchase goods for resale, and from 5% to 4.3% for businesses that provide services. For reporting periods that began before July 1, 2006 and end after that date, the 2.5% rate applies for consideration that became due, or that was paid without having become due, before July 1, 2006. The 2.2% rate applies for all other consideration. A bad debt arises in respect of a sale on which 7% GST was charged. What is the consequence to the net tax remittance? The same amount of GST as on the sale will be used in the formula to calculate the amount that may be deducted from net tax remittance. Is there any change in how the GST return should be prepared as a result of the rate reduction? No. The total GST collected or collectible in the reporting period, whether at 7% or 6%, should continue to be reported on line 103 of the return. The ITC for the tax paid or payable sho
