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Canada GST/HST Remittance Checklist for Restaurants (2026): Avoid Tax-Time Cash Shock

A practical GST/HST checklist for Canadian restaurants in 2026. Covers registration threshold, remittance timing, ITC basics, and weekly reserve math.

Published Feb 14, 2026
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Most restaurant tax problems in Canada are cash-timing problems, not math problems.

You know tax is due. But if GST/HST sits in the same account as operating cash, remittance month can still feel like a shock.

Quick Take

  • Statistics Canada reported all-items CPI +2.4% in December 2025.
  • The same release showed food purchased from restaurants +8.5% year over year.
  • CRA’s general small supplier threshold is CAD 30,000 in taxable revenue.
  • CRA says monthly and quarterly GST/HST filers generally file and pay 1 month after period-end.
  • CFIB (January 2026) shows cost pressure still broad: taxes/regulation and wage costs remain top concerns.

This is why a weekly tax reserve routine belongs in your operating system.

The 4-Part GST/HST Control Stack

  1. Registration status check
  2. Weekly collected-tax reserve transfer
  3. Input tax credit (ITC) capture discipline
  4. Filing deadline calendar with owner visibility

If one block breaks, cash pressure appears later and feels “sudden.”

Core Weekly Formula

Weekly tax reserve transfer = Output tax collected - eligible ITCs accrued

Then keep the reserve separate from operating spend.

Worked Example

One reporting period snapshot:

  • Output tax collected: CAD 1,560
  • Eligible ITCs: CAD 910
Net remittance exposure = 1,560 - 910 = CAD 650

If you wait until filing month, that CAD 650 competes with payroll and suppliers. If you reserve weekly, it is already funded.

Deadline Rules Owners Miss

CRA baseline reminders:

  • Monthly/quarterly filers: return and payment generally due one month after period end
  • Annual filer (individual with Dec 31 year-end and business income): return due by June 15, payment due by April 30

Put these dates in your calendar at the start of each fiscal year.

Community Signal

In Canadian small-business threads, owners repeatedly ask about late registration risk, backdated exposure, and remittance anxiety. The pain is usually avoidable when reserve habits start early.

20-Minute Weekly Checklist

  • Post taxable sales and output tax for the week
  • Post eligible ITCs from valid records
  • Transfer net tax reserve to a separate bucket
  • Reconcile reserve vs expected remittance
  • Confirm next filing/payment due date
  • Reprice low-contribution items if tax + wage pressure narrows cash

KitchenCost helps owner-operators connect recipe-level contribution and weekly reserve planning, so remittance month is controlled, not chaotic.

Sources (checked on 2026-02-14)

Frequently Asked Questions

When does a small restaurant usually need to register for GST/HST?

CRA's general rule is that you are a small supplier if total worldwide taxable revenues are CAD 30,000 or less over the relevant test period. Above that threshold, registration obligations can apply.

When are GST/HST returns and payments due?

For monthly and quarterly filers, the due date is generally one month after the end of the reporting period. Annual filers have specific deadlines that depend on filing profile.

What is the fastest way to prevent remittance-time cash stress?

Run a weekly tax reserve transfer instead of waiting for filing month. Treat collected tax as a liability, not operating cash.

Why do owners get surprised even with steady sales?

Because foodservice prices, wages, and tax liabilities can all rise while net cash conversion weakens. Without weekly reserve discipline, remittance month feels like a sudden hit.

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