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COVID-19 Update: GST, HST and Duty Payments Deferred to June

Posted March 30, 2020

Why It Matters

As part of a sweeping aid package to assist businesses dealing with the consequences of the COVID-19 pandemic, the Canadian government on Friday announced that the month-end payment of duties and taxes on imports will now be deferred until June.

According to a statement released by the Prime Minister’s Office: “The deferral to June of GST/HST payments, as well as customs duties owing on imports, will generally apply to remittances that become due in March, April, and May. These amounts would normally have been due to the Canada Revenue Agency and the Canada Border Services Agency as early as the end of this month. This measure will take effect immediately, through existing authorities.”

CN 20-11 – Extension of Timeframes for Payment of Customs Duties and GST (COVID-19):

Outlines the authority pursuant to subsection 33.7(1) of the Customs Act enabling the government to allow businesses to defer to June some paymtns of the GST/HST amounts collected on their sales, as well as customs duties owing on their imports.

Note: The extension to June 30, 2020 covers all payments due to Agency (customs duties and GST on regular imports, re-assessments, penalties, etc.). This also includes charges on the statement of account of March due on April 1, 2020.

Late Accounting

CBSA has already provided a 45 business day grace period for late accounting penalties. No application is required and applies to transactions released from March 11, 2020 through May 14, 2020, inclusively.

Entries Must Still be Filed

There is no change to the accounting timeframes prescribed by the Accounting for Imported Goods and Payment of Duties Regulations. Importers are still required to submit accounting declarations for imported goods released on minimum documentation within the required timeframes.

Need More Information?

If you have any questions or concerns about this or other regulatory changes related to COVID-19 and how they might impact your business, don’t hesitate to contact one of our trade experts today.

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