Success Tips


What is the GST Credit in Alberta, and How Do I Qualify?

Jan. 25, 2019

In a survey conducted by the Toronto Daily Bread Food Bank, it was discovered that 25% of users hadn’t filed taxes, and those statistics are similar across Canada and even in Alberta.

The same survey estimated that as many as 10% of low-income families in Canada are not getting the GST credit they are entitled to.

The only thing required to receive this credit is to file your taxes and be in a certain income bracket, but you don’t need to be below the poverty line to get it. If you think you could make more ends meet at home, learn more on what the GST credit is in Alberta, and how you can qualify right here.

What is the GST Credit?

The GST credit in Canada is the term for the credit received after the purchase of goods and services. When you buy products or services in Canada, you may be charged a tax called the GST, the Goods and Services Tax. Some Canadians can get some of that money back through a GST credit.

In Canada, the tax system is termed “progressive” meaning, the wealthy Canadians pay the most taxes in the country. The lower income families receive credits to offset the cost of living and offset some of the taxes they pay year-round with general, everyday purchases.

In Alberta, the rate of GST is 5%. That means if you purchase, say, one stick of gum at $1.00, you are going to pay $1.05 for that gum.

The GST credit is a credit you receive four times a year, through a cheque from the government, that compensates you for some of your GST costs throughout the year.

The GST credit is issued as a cheque in the first week of January, April, July, and October. It is usually issued on or around the fifth of the month, or on the closest business day to that date.

This is a cheque that could be very useful to low-income brackets in Canada, which is what it is intended for. But the unfortunate thing is that low-income households in Canada are the least likely to file taxes, and may not even know they are eligible for this income four times a year.

Book a free 30-minute success check with tax professionals to determine where your tax situation stands. Eligibility for the GST rebate is easier than you think.

Eligibility for the GST Rebate

The most important step in determining if you are eligible for the GST rebate is filing your tax returns. You can not receive the GST credit without it, under any circumstance.

You must also be a Canadian resident, and at least 19 years old. There is a separate application for the GST credit for new Canadian residents.

If you have had a spouse or previous common-law partner, or are a parent with a child, you also may be eligible for the GST credit.

How much you will receive as a GST credit will determine on your personal income. Once you file your taxes, the Canadian Revenue Agency (CRA) will determine from that number how much you will get.

You will be notified one way or another by the CRA if you are eligible for the GST rebate, and how much you will receive in Alberta.

There is no penalty for applying for the GST rebate in Alberta, even if the CRA determines you do not qualify. A Canadian online family benefits calculator can help to give you an idea on your GST credit amount before you file your taxes.

Be Proactive With Taxes

Whether you are a business looking to earn more, or an individual tax filer in Canada, it’s important to be proactive with your tax returns. When you are, you could actually see more income throughout the year.

Businesses benefit from the GST credit because it helps lift their customers out of poverty, and contributes to the stimulation of the local economy. At the same time, Canadian households can enjoy the benefits of the GST credit for the same reason.

That cheque that arrives in the first week of January, April, July, and October, could be perfectly timed for that household that needs just a little bit extra to make ends meet in that specific week or month. Be proactive with your tax returns and contact full-service Alberta tax professionals to ensure you receive the GST credit this tax season.

Categories : Business Tips

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