By the time July rolls around, many business owners are thinking about vacations, summer schedules, and catching up after a busy first half of the year. But for many businesses and bookkeepers, there is another important date approaching: the July 31 HST filing deadline.

HST deadlines have a way of arriving quickly. A few missing invoices, an unreconciled bank account, or an incorrectly coded expense can turn a routine filing into hours of extra cleanup.

Whether you are a small business owner managing your own books or a bookkeeper supporting multiple clients, taking time to review your HST return before submitting can help prevent costly mistakes, CRA adjustments, and unnecessary follow-ups.

Here are some of the most common HST filing pitfalls to watch for before July 31.

Who Has an HST Deadline on July 31?

Filer Type	Reporting / Payment Period	July 31 Obligation
Quarterly Filers	Q2 (April 1 – June 30)	File Return & Pay Balance Owing
Monthly Filers	June (June 1 – June 30)	File Return & Pay Balance Owing
Annual Filers (Calendar Year)	Q2 Instalment (April 1 – June 30)	Pay Quarterly Instalment (if net tax > $3,000)
Annual Filers (April 30 Year-End)	Fiscal Year Ending April 30	File Return & Pay Balance Owing

6 Common Pitfalls to Steer Clear Of

1. Assuming “No Revenue” Means “No Filing Required”

If your business had zero sales or spent the quarter in prep mode, it’s tempting to think you can skip filing.

The Reality: If you have an active GST/HST account with the CRA, you must file a return for every period, even if it’s a “Nil Return.” Failing to file on time can trigger non-filer notifications, freeze refunds, or prompt the CRA to issue an estimated assessment with arbitrary tax owing.

2. Forgetting the 50% Limit on Meals and Entertainment ITCs

Input Tax Credits (ITCs) let you recover the HST paid on legitimate business expenses. However, not all expenses qualify for a 100% credit.

The Reality: The HST paid on client meals, coffees, and entertainment expenses follows the same rule as income tax deduction limits: you can only claim a 50% ITC. Claiming the full amount is one of the most common audit adjustments made by the CRA.

3. Claiming ITCs Without Valid Vendor Registration Numbers

If you are audited, the CRA doesn’t just look at the expense total; it checks whether your vendors are legitimately registered to collect tax.

The Reality: For purchases totaling $100 or more, if you claim an ITC on an invoice that lacks the supplier’s 9-digit GST/HST registration number (or if the number provided is fake or inactive), the CRA will disallow the credit.

• The Fix: For large purchases or new recurring vendors, double-check registration numbers using the free CRA GST/HST Registry online tool.

4. Botching Interprovincial “Place of Supply” Rules

With remote work and e-commerce, selling across provincial borders is easier than ever, and so is picking the wrong tax rate.

The Reality: HST rates vary significantly by province (e.g., Ontario is 13%, Nova Scotia is 14%, and Alberta charges 5% GST only). Under CRA Place of Supply rules, you generally charge the tax rate of the customer’s location (where the goods or services are delivered or consumed), not your own business’s home base.

5. Trying to Mail a Paper Return

If you are still filling out paper GST34-2 returns by hand, it’s time to switch tools.

The Reality: Electronic filing via CRA NETFILE or My Business Account is mandatory for almost all GST/HST registrants. Filing on paper when required to file electronically can result in a penalty ($100 for the first offense).

6. Missing the Q2 Instalment Payment

If you file annually, you are required to pay quarterly instalments throughout the current year if your net tax owing was $3,000 or more in the previous fiscal year and is expected to be $3,000 or more in the current fiscal year.

The Reality: July 31 marks the deadline for the 2nd quarterly instalment for calendar-year filers. Skipping this instalment won’t trigger a late-filing penalty since the return isn’t due yet, but the CRA will charge daily-compounding interest on the underpaid instalment amount from August 1 onward.

Pro Tip for Bookkeepers & Owners: When claiming ITCs, support documentation rules depend on the total purchase amount:

• $500 or more: All of the above, plus the buyer’s name (your business name) and a brief description of the goods or services purchased.

• Under $50: Supplier name, transaction date, and total amount paid.

• $50 to $499.99: All of the above, plus the explicit GST/HST amount (or an indication that tax was included at a specific rate). Note: The supplier’s 9-digit registration number is mandatory if the total is $100 or more.

Final Checklist Before You Submit

• Double-check that all sales from April 1 to June 30 are accounted for in your software.
• Review expenses to ensure meals & entertainment ITCs are capped at 50%.
• Verify that out-of-province sales carry the correct provincial tax rates.
• File electronically using CRA NETFILE, My Business Account, or directly via your accounting software.
• Confirm that payment is scheduled or processed on or before July 31 to avoid daily interest charges.