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Canada Restaurant GST/HST Remittance Checklist (2026): Keep Tax Cash Out of Your Margin

A practical remittance checklist for Canadian restaurants and cafes. Separate tax cash from operating cash, avoid remittance shocks, and protect weekly margin decisions.

Published Feb 14, 2026
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Many operators are not losing margin only on food. They are losing it by spending tax cash before remittance day.

If your GST/HST money sits in the same account as operating cash, this guide is for you.

Quick Summary

  • Tax collected is not revenue.
  • Move GST/HST cash weekly into a separate reserve account.
  • Reconcile POS tax totals against bookkeeping monthly.
  • Keep price and margin logic on pre-tax sales.

Why This Matters in 2026

Statistics Canada (December 2025, released 19 January 2026) shows:

  • All-items CPI: +1.8% YoY
  • Food purchased from stores: +0.6% YoY
  • Food purchased from restaurants: +8.5% YoY

The same release notes base-effect impact from the temporary GST/HST break period. That means headline inflation and restaurant cash pressure can move differently.

When contribution is already tight, a remittance surprise becomes a cash crisis.

Core Formula

netTaxPayable = GST/HST collected - eligibleITCs
taxReserveTransfer (weekly) = netTaxPayable to date - taxReserveBalance

Do not wait for filing week to calculate this.

Rate Reality (Canada)

CRA rate guidance (current):

  • Ontario: 13% HST
  • Alberta: 5% GST
  • Nova Scotia: 14% HST
  • Newfoundland and Labrador: 14% HST

If you operate in multiple provinces, one flat tax assumption is a reporting risk.

Worked Example (4-Week Snapshot)

Assumptions:

  • Pre-tax sales: CAD 86,000
  • Tax collected (blended footprint): CAD 9,280
  • Eligible ITCs: CAD 1,940
  • Current tax reserve balance: CAD 5,400
netTaxPayable = 9,280 - 1,940 = CAD 7,340
requiredTransferNow = 7,340 - 5,400 = CAD 1,940

If you skip that transfer, the filing period starts with an avoidable cash gap.

Weekly GST/HST Checklist (15 Minutes)

  1. Export POS tax-collected total.
  2. Update ITC purchases logged this week.
  3. Recalculate net tax payable to date.
  4. Transfer shortfall to tax reserve account.
  5. Flag province/rate mismatches in POS settings.

Monthly Control Check

  • POS tax report vs accounting ledger match
  • ITC documentation completeness
  • Reserve account balance vs projected payable
  • Filing calendar confirmed (monthly/quarterly/annual)

Common Mistakes

  1. Treating tax collected as operating revenue.
  2. Using one blended tax rate across provinces.
  3. Reconciling only at filing deadline.
  4. Running pricing and food-cost analysis on tax-inclusive sales.

KitchenCost helps you keep recipe and menu costs current, so tax reconciliation does not hide pricing mistakes.

Try KitchenCost.

Sources (checked on 2026-02-14)

Frequently Asked Questions

What is the core GST/HST remittance formula?

Use net tax payable = GST/HST collected - eligible input tax credits, then transfer that amount to a separate tax reserve account on a fixed schedule.

Why do restaurants run into remittance surprises?

Because tax collected at checkout is treated like operating cash and spent before filing time.

Should pricing math use tax-inclusive sales?

No. Build margin and food-cost math on pre-tax sales first, then apply GST/HST at checkout.

How often should owner-operators review GST/HST cash?

Weekly for reserve transfers and monthly for full reconciliation against POS and accounting records.

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