Can You Use the CRA Voluntary Disclosures Program for Unreported GST/HST in Canada?
This answer covers Canadian federal tax law, which applies in every province.
Yes, you may be able to use the CRA's Voluntary Disclosures Program (VDP) to correct unreported GST/HST, but only if you come forward before an audit or investigation has started against you or a related person. GST/HST Memorandum 16-5-1 applies to applications received on or after October 1, 2025, and Memorandum 16-5 applies to earlier ones.
Relief depends on whether your application is unprompted or prompted. Unprompted applications get 75% interest relief and 100% penalty relief, while prompted ones get 25% interest relief and up to 100% penalty relief. Qualifying wash transactions can receive 100% relief of penalties and interest in either case. The tax itself must still be paid, with the application or through a payment arrangement request, and the CRA may not approve that arrangement.
Supporting documents are required for the most recent four years, and the CRA may ask for older periods. If records are missing, make reasonable estimates. Relief is not available for changing elections, insolvency, or input tax credit increases with no matching tax liability increase. Submit your application by one method only: online, by fax or by mail. A lawyer or accountant can confirm whether your situation fits.
Key takeaways
- Unprompted GST/HST applications get 75% interest relief and 100% penalty relief, while prompted ones get 25% interest relief and up to 100% penalty relief.
- The tax itself must still be paid, either with the application or through a payment arrangement request that the CRA may not approve.
- Supporting documents are required for the most recent four years, and you should make reasonable estimates if records are missing.
- An audit or investigation already started against you or a related person means the disclosure is not voluntary, so timing matters.