By now you should have received a cheque in the mail from CRA which is your Small Business Transition Support Payment for HST. If you aren’t sure why you received the money, it is as a result of the introduction of HST in Ontario on July 1, 2010. The Ontario Government introduced this one time payment to small businesses to help small businesses with costs related to the transition to HST and make the necessary changes to their systems. If you qualify as an eligible business you could receive a transition support payment of up to $1000.
How do you know if you are eligible for this HST Support Payment?
The following criteria are required:
- You were an active GST registrant at July 1, 2010
- You are not a financial institution
- You carry on business in Ontario and have a premises in Ontario through which you conduct your business
- You have GST/HST taxable supplies of less than $2 million dollars in a given 12 month period ending on or after January 1, 2009
The amount that you are eligible for is dependent on your taxable revenues for a twelve month period:
| Total Taxable Revenues for a 12 Month Period | Amount of Transition Support |
|---|---|
| $60,000 or less | $300 |
| greater than $60,000 but not greater than $200,000 | 0.5% of Taxable Revenue |
| greater than $200,000 but less than $2 million | $1000 |
The support payment you receive is considered as income and therefore taxable, so do ensure that you report it on your income statement.
If you haven’t received your payment and believe you are eligible, contact CRA at 1-800-959-5525.
