3 Reasons Why You are Getting A GST/HST or QST Refund

When filing your GST/HST and QST returns you might find that you have a refund.  This could be a recurring situation or could happen infrequently.  Some reasons why this might happen:

1. Expenses exceed sales:.  Businesses in the beginning stages often have more expenses than actual sales.
2. Sales are Zero Rated: There are several reasons why you may not have to charge sales taxes on your sales, most notably if you are selling internationally.  In this case, while you have not collected any GST/HST or QST, you are still able to claim the sales taxes paid on expenses.
3. Large purchases: You might have made a large, business related purchase eg. machinery, furniture, computers etc. which you are may claim on your sales tax returns.
4. QST Refund Only: If your business is resident in Quebec, but sells to other provinces, you are not required to charge QST.  However you are still making taxable purchases in Quebec.  In this case QST paid might exceed QST collected.