Annual vs quarterly HST filing for Ontario small businesses
CRA assigns your GST/HST reporting period when you register, based on your expected sales. Small businesses usually start as annual filers, but you can choose to file more often. Here is how the thresholds work and what changes if you switch.
Estimate your yearly HST remittance first
Last reviewed October 2026 · Educational information, not tax advice.
How CRA assigns your reporting period
| Annual taxable supplies | Assigned period | Optional |
|---|---|---|
| $1,500,000 or less | Annual | Monthly or quarterly |
| More than $1,500,000 up to $6,000,000 | Quarterly | Monthly |
| More than $6,000,000 | Monthly | None |
Sources: Canada.ca: Make changes to your GST/HST account (reporting period) and RC4022. You can ask for a more frequent period through My Business Account or with Form GST20. CRA does not automatically move you to a less frequent period if your sales drop, so you have to ask.
Annual filing: pros and cons
- Pros: one return a year; HST you collect stays in your account longer; less admin for a busy sole proprietor.
- Cons: a large single payment if you do not set money aside; quarterly instalments anyway once your net tax reaches $3,000; refunds (for example in a year with big equipment purchases) arrive only once a year.
Quarterly filing: pros and cons
- Pros: smaller, regular payments that match the HST you just collected; no separate instalment schedule; faster refunds when your ITCs exceed the HST you collected; mistakes surface sooner.
- Cons: four returns a year, each due one month after the quarter ends, and four chances to miss a deadline.
Worked example
An Ontario consultant on the Quick Method expects $80,000.00 of sales, which the calculator turns into a yearly remittance of $7,655.20.
| Annual filer (prior-year net tax ≥ $3,000) | Quarterly filer | |
|---|---|---|
| Returns per year | 1 (due June 15 for a sole proprietor with a December 31 year-end) | 4 (one month after each quarter) |
| Payments per year | 4 instalments of about $1,913.80, plus any balance by April 30 | 4 payments, each based on that quarter's sales |
| Instalment interest risk | Yes, if instalments are late or short | No instalments |
For a business with steady income, the cash outlay ends up similar. The real differences are admin time and how closely you want payments to track your actual sales. A seasonal business (a landscaper, for example) may prefer quarterly filing so payments follow the busy months rather than last year's average.
Quick Method and your reporting period
The Quick Method works with any reporting period, but the election deadline differs: annual filers must elect by the first day of the second fiscal quarter, while monthly and quarterly filers elect by the due date of the return for the period they start in. See how to elect the Quick Method.
Frequently asked questions
Can a small business choose to file HST quarterly instead of annually?
Yes. If CRA assigned you an annual period because your taxable supplies are $1.5 million or less, you can elect a quarterly or monthly period through My Business Account or with Form GST20.
Do annual HST filers pay quarterly anyway?
Often. If your net tax for the previous fiscal year was $3,000 or more, you may have to pay quarterly instalments, then file one return at year-end.
Will CRA change my reporting period automatically if my sales go down?
No. CRA moves you to a more frequent period when your sales go over a threshold, but you have to ask to move to a less frequent period.
Sources
- Canada.ca: Make changes to your GST/HST account (reporting period)
- CRA Form GST20, Election for GST/HST Reporting Period
- CRA RC4022, General Information for GST/HST Registrants
- Canada.ca: Remit (pay) the GST/HST by instalments
Rates and thresholds are taken from the CRA pages above. CRA can change them, so check the source before you file.