If you are a resident of Canada, you may be eligible for an important tax credit: the GST/HST credit. We always advise our clients who file their first tax return in Canada to apply for GST/HST credit even if they have no income. 

We have realized that many individuals, specially newcomers, are not aware of GST/HST credit. Therefor, we have prepared this post, which is reviewed by our professional accountant, to explain what the GST/HST credit is and how to apply for it. 

What is the GST/HST Credit?

The GST/HST credit is a tax-free quarterly payment that helps individuals with low to modest incomes offset the GST or HST that they pay on purchases. To be eligible for the GST/HST credit, you must be a resident of Canada for income tax purposes, have filed your tax return, and meet certain income requirements. You should usually be 19 years or older to be able to apply for GST/HST credit.

The amount of the credit that you receive will depend on your income and family situation, and will be paid out to individuals quarterly (every four months in a year)

How to apply for GST/HST as a new resident of Canada?

To apply for these credits, as an individual with no children, you need fill out the RC151 form which is downloadable from the Canada Revenue Agency (CRA) website or request a paper copy of the form by calling the CRA’s individual tax enquiries line at 1-800-959-8281. Once you have filled out the form, you can mail it to the CRA or drop it off at a local Service Canada location. Alternatively, you can apply for the credit through your CRA’s My Account service.

If you have children, you need to fill out the RC66 form is required with a proof of birth for your children. 

For more information about how to apply and other information, you can check the CRA website through this link. If you still have questions about the form, you can contact our accountant who would be happy to assist.