Filing a GST/HST or QST election (or both) – CRA account help - Businesses
To update certain reporting and tax options related to GST/HST or Quebec Sales Tax (QST), such as changing your fiscal year or reporting period (monthly, quarterly or annual), you must file an election. The "File an election" service in My Business Account provides web forms for a few common elections or it also allows you to upload completed PDF forms for other elections.
Some elections are specific to Listed Financial Institutions (LFI) and Selected Listed Financial Institutions (SLFI).
How to file
Select a web form to complete
A few common elections can be filed in My Business Account using a web form:
- Select the election you want to file from the list
- Choose Next
- Follow the instructions in each step of that web form
Upload a completed PDF form
Several other GST/HST and QST related elections can be filed in My Business Account if you upload a completed PDF form:
- Choose Other (last option)
- Choose Next
- In the drop-down list, find the election you want to file
- In the File description field, add a brief description of your completed form
- Choose Choose file and find your form saved on your computer
- Choose Add file
To download and complete any of the forms listed in the ‘Other’ dropdown, refer to:
- GST/HST-related forms and publications
- GST/HST and QST forms and publications for selected listed financial institutions
Elections you can file using a web form
Elections that can be filed using a web form are explained below in more detail.
Change your reporting period (GST20 or RC7220)
Use the following forms to change your GST/HST or QST reporting periods (or both):
- GST20, Election for GST/HST Reporting Period (not for LFIs)
- RC7220, Election for GST/HST and QST Reporting Period for a Selected Listed Financial Institution
Reporting period options are annual, quarterly, or monthly, and are based on your threshold amount.
| Threshold amount | Reporting period options available |
|---|---|
| $1,500,000 or less | Annual, quarterly, or monthly |
| More than $1,500,000 but not more than $6,000,000 | Quarterly or monthly |
| More than $6,000,000 | Monthly |
Charities may use any of the reporting period options, regardless of their taxable supplies.
Threshold amount
You will need the following information to determine your threshold amount:
- Total taxable sales and revenue for your immediately preceding fiscal year. Do not include amounts collected as GST/HST or provincial sales tax.
- The total of your taxable sales and revenue that was derived from the following sources:
- Goodwill
- Financial services
- Sales of capital real property
- Zero-rated exports
- Supplies made outside Canada
Threshold amount = ((Total taxable sales and revenue − Total taxable sales and revenue derived from the items listed above) ÷ Total number of days in the fiscal year) × 365
If you have divisions or associates, complete the above calculation for each division or associate. The total threshold amount equals the sum of all the threshold amounts for each associate, as well as the threshold amount for the account filing the election.
Effective date
The effective date must be the first day of your fiscal year.
Your election will not be accepted if you have already filed GST/HST or QST returns for the fiscal period. For example, if you file your GST20 election on March 1, 2021 with an effective date of January 1, 2021, and you have already filed your January 2021 GST/HST return, we will not accept your election.
Due date for filing your election
If you are electing to change from quarterly to annual filing, file your election no later than three months after the beginning of the fiscal year in which the election is to take effect.
If you are a new registrant, make an election to change your reporting period on or before the effective date of your GST/HST registration when the election is to take effect on that day.
In all other cases, file your election no later than two months after the day the election is to take effect.
Change your reporting period – notice of revocation (GST20-1 or RC7220-1)
Use these forms to revoke a previous election made under section 246 or 247 of the Excise Tax Act to change the reporting period of your GST/HST or GST/HST and QST return.
- GST20-1, Notice of Revocation of an Election for GST/HST Reporting Period by a Listed Financial Institution
- RC7220-1, Notice of Revocation of an Election for GST/HST and QST Reporting Period by a Selected Listed Financial Institution
Effective date
The revocation effective date must be the first day of your fiscal year and cannot be earlier than today’s date.
Change a fiscal year (GST70 or RC7270)
Use the following forms to file an election to change your GST/HST or GST/HST and QST fiscal year, or to revoke a previously filed election:
- GST70, Election or Revocation of an Election to Change a GST/HST Fiscal Year
- RC7270, Election or Revocation of an Election to Change a GST/HST and QST Fiscal Year for Certain Selected Listed Financial Institutions
If you are an individual or a trust, you can make your fiscal year end something other than a calendar year end if you have chosen for income tax purposes to use a fiscal period that is not the same as your tax year for one or more of your businesses (or a partnership of which you are a member).
If you are not an individual or trust, you can change your GST/HST fiscal year to be either: (i) the same as your tax year for income purposes, or, (ii) December 31st.
Effective date
The effective date must be the first day of the new fiscal period. For example, if your new GST/HST fiscal year end is June 30 (06-30) and you want the election to be effective for 2018, then the effective date must be July 1, 2018.
Notify us of varying accounting periods (GST71 or RC7271)
Use the following forms if your accounting periods vary in length throughout your fiscal year, or if your quarter-end and month-end dates do not end on the last day of a calendar month:
- GST71, Notification of GST/HST Accounting Periods
- RC7271, Notification of GST/HST and QST Accounting Periods for Certain Selected Listed Financial Institutions
Your accounting periods have to meet our guidelines for fiscal quarters and months.
Fiscal quarters
There are four fiscal quarters in each fiscal year. The first fiscal quarter in a fiscal year starts on the first day of that fiscal year, and the last fiscal quarter ends on the last day of that fiscal year. Each fiscal quarter cannot be longer than 119 days and, except for the first and last quarters of the fiscal year, each fiscal quarter cannot be shorter than 84 days.
Fiscal months
The first fiscal month in each fiscal quarter starts on the first day of the fiscal quarter, and the last fiscal month in each fiscal quarter ends on the last day of that fiscal quarter. Each fiscal month cannot be longer than 35 days and, except for the first and last month of a fiscal quarter, each fiscal month cannot be shorter than 28 days.
Start or stop using the quick method of accounting (GST74)
Use the following form to start or stop using the quick method of accounting:
Effective date
When electing to use the quick method of accounting, the effective date has to be the first day of a GST/HST reporting period. If you had previously elected to use the quick method and had revoked that election, you have to wait at least one year from the date the revocation became effective before you can elect to use the quick method again.
When and how can you revoke the election
You can revoke the election only after your quick method election has been in effect for at least one year. Generally, you have to revoke the election by the due date of the GST/HST return for the last reporting period in which you wish to use the quick method.
Learn more: Guide RC4058, Quick Method of Accounting for GST/HST
Treat certain taxable supplies as made for nil consideration for GST/HST purposes (RC4616)
Corporations and Canadian partnerships that are specified members of a qualifying group can use the following form to either jointly elect to treat certain taxable supplies between them as having been made for no consideration, or to jointly revoke the election:
Part A – Identification
Enter the Business Number of each specified member and specify whether the account is a qualifying or temporary member. Also enter the reporting period of the return that includes the effective date of the election or revocation. For example, if the effective date is January 15, 2016 and the member is a monthly filer with a calendar year end, the reporting period would be January 1, 2016 to January 31, 2016.
Part B – Election or revocation of the election
To make (or revoke) the election, you have to complete parts A and B of the RC4616 form and file it on or before the day which the GST/HST return for the reporting period that includes the effective date of the election is required to be filed. The election is to be filed by the earliest date that a GST/HST return is due from the specified members who intend to make the election.
Treat certain taxable supplies as made for nil consideration for GST/HST or QST purposes, or both (RC7296)
Corporations and partnerships that are specified members of a qualifying group that includes an SLFI for GST/HST and QST purposes or an SLFI only for QST purposes can use the RC7296 form to either jointly make or revoke the elections with another specified member of the group to treat certain taxable supplies made between them as having been made for no consideration for GST/HST or QST purposes or for both GST/HST and QST purposes:
In addition, a corporation or a partnership that is an SLFI only for GST/HST purposes and that is a specified member of a qualifying group can use this form to either jointly make or revoke the election with another member of the group to treat certain taxable supplies made between them as having been made for no consideration for GST/HST and QST purposes or only for QST purposes.