Glossary
Paying collected sales tax to the Canada Revenue Agency.
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Short answer: A GST/HST remittance is the payment of collected sales tax to the Canada Revenue Agency, minus input tax credits, on your filing schedule. A business collecting $12,000 in HST with $4,000 in input credits remits $8,000. Missed remittances bring penalties and collection action, which funders watch for.
Key facts
Related: Business Funding Glossary: 70 Terms Explained · Factor Rate Explained: How MCA Pricing Works · What Business Funding Costs in Canada, Compared · Business Funding Comparisons for Canadian Owners · Business Funding Calculators in Canadian Dollars
Paying collected sales tax to the Canada Revenue Agency.
Businesses registered for GST/HST collect tax on sales and remit it, minus input tax credits, on a filing schedule.
Missed remittances bring penalties and collection action.
A business collecting $12,000 in HST with $4,000 in input credits remits $8,000.
Applies to most registered Canadian businesses.
Reviewers watch for remittance payments and arrears.
A large balance may include tax owed.
Glossary terms are most useful next to the decisions they affect. If you are comparing offers, read the pages on factor rates, payback amounts and the repayment cap together. If you are preparing an application, the documents checklist and requirements pages explain what is read. And if a term in an agreement is unclear, ask the funder to explain it in writing before you sign; a good funder will.
Filing frequency depends on revenue: smaller businesses may file annually or quarterly, larger ones monthly. Whatever the schedule, setting aside the tax as it is collected prevents the remittance from becoming a cash crisis.
Remittances appear in bank statements as payments to the Receiver General, and on CRA notices of assessment. Refunds, when input tax credits exceed tax collected, appear as deposits from the government and should not be mistaken for sales revenue.
Most funding terms come back to two questions: how much will I repay in total, and how will each payment affect my cash in a normal month and a slow one. When you meet an unfamiliar term in an offer or agreement, translate it into those two answers before deciding whether it matters. If a funder cannot explain a term in plain language and with your own numbers, treat that as useful information about the offer.
These terms often appear alongside gst/hst remittance in offers, agreements and conversations with funders:
A reviewer looks for regular remittance payments on your statements and asks whether any balance is owed to the CRA. Large balances sitting in the account may include tax collected but not yet remitted, which is not money the business can spend. Showing your filing frequency and the date of the last remittance answers both questions quickly.
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
No. It is held for the government.
See the related guides and the comparison pages, or apply and ask.
No. It is educational information, and agreements vary.
Educational information only. It is not legal, tax or accounting advice.
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