Do I have to make HST installment payments during the year if I file annually?

Yes, most annual HST filers are required to make quarterly installment payments to the CRA during the year, even though they only file a single return at year end. The installment amounts are generally calculated based on the previous year's net tax divided into four equal payments, due at the end of each fiscal quarter.

If your net tax for the prior year was less than a specified amount (currently $3,000), you are not required to make installments — you simply pay the full amount with your annual return. If you are a new registrant with no prior year's net tax, installments are typically not required for the first year.

Failing to make required installments results in installment interest charges, even if you pay everything owing when you file your annual return on time. The installment interest calculation is based on the difference between what you paid and what you should have paid at each quarterly due date. The CRA sends reminder notices, but it is your responsibility to calculate and pay on time even if you do not receive a notice.