Construction GST/HST Filing · From $150/Filing
We Handle Your Construction GST/HST Filing
Construction GST/HST is the most complex HST in Ontario. Progress billing, holdback timing, subcontractor ITC verification, T5018 penalties, self-supply rules, new housing rebate. We handle all of it. Flat fee. Filed on time. T5018 included.
What Is Included in Our Construction GST/HST Filing Service
Everything your construction company needs for CRA-compliant HST filing and T5018 reporting. No hourly billing.
| Included | What We Do |
|---|---|
| GST/HST return preparation and filing | We prepare and file your GST/HST return (monthly, quarterly or annual) through CRA on your behalf, on time, every period. |
| Subcontractor ITC verification | We verify each subcontractor's HST registration number before claiming the ITC. No ITCs claimed on invoices from unregistered subs. |
| T5018 subcontractor payment filing | We track all subcontractor payments, collect business numbers and file T5018 statements by the deadline. No $2,500-per-statement penalties. |
| Progress billing HST timing | We report HST on each progress invoice in the correct filing period. Change orders and additional billings tracked separately. |
| Holdback HST deferral | We defer HST on the 10% statutory holdback until the holdback is released and paid, saving you cash flow on every project. |
| Deposit HST tracking | We calculate HST on deposits received (13/113 method) and report in the correct period. No timing discrepancies for CRA to flag. |
| ITC recovery on materials, equipment rentals and fuel | We claim ITCs on building materials, equipment rentals, vehicle fuel, tools, office expenses and professional fees. Every eligible dollar recovered. |
| Place-of-supply verification | For out-of-province projects, we verify the correct HST/GST rate (not Ontario's 13% by default) and apply it before invoicing. |
| New Housing Rebate and NRRPR | We calculate and apply the New Housing Rebate (federal + Ontario) or New Residential Rental Property Rebate for builder clients. |
| Annual T2 corporate tax return | Filed FREE for every construction GST/HST filing client. No additional charge. |
How It Works
Four steps. We handle the complexity. You build.
1
Connect
We connect to your QBO or Xero. If you do not have accounting software, we set it up with a construction chart of accounts.
2
Verify
We verify every subcontractor's HST registration, track progress invoices, holdbacks, deposits and change orders for the period.
3
Calculate
We calculate HST collected (with holdback deferral), ITCs on verified purchases, and determine net tax owing or refund.
4
File
We file your GST/HST return and T5018 statements through CRA, confirm filing and notify you of the amount owing or refund.
Construction GST/GST/HST Filing from $150 / Filing
Flat fee. Holdback accounting, sub verification, T5018 filing and T2 filed FREE.
The Construction GST/HST Rules We Handle for You
| Construction Scenario | HST Treatment | How We Handle It |
|---|---|---|
| New home construction | Taxable at 13% | HST on full contract value. New Housing Rebate credited to buyer at closing if applicable. |
| Residential renovation and repair | Taxable at 13% | All reno invoices include 13% HST. No exemption for homeowner-contracted work. |
| Commercial construction | Taxable at 13% | HST collected. Commercial customer claims ITC on their side. |
| Progress billing | HST due when invoice issued | Each progress bill reported in the period issued. Holdback portion deferred. |
| 10% statutory holdback | HST deferred until released | We defer the holdback HST until paid, saving cash flow on every project. |
| Deposits and advances | HST due when received | HST calculated at 13/113 on deposit amount, reported in the period received. |
| Self-supply (builder occupies or rents new unit) | Self-assess HST on FMV at first occupancy | We self-assess HST and simultaneously claim NRRPR or New Housing Rebate to offset. |
| Subcontractor invoices | ITC claimable if sub is registered | Registration verified before ITC claimed. Unregistered sub invoices flagged. |
| Out-of-province projects | Charge rate where property is located | We verify correct HST/GST rate per project location before filing. |
| Warranty work | No additional HST | Warranty callbacks tracked separately. No HST generated on no-charge warranty repairs. |
T5018 Filing: We Prevent the Most Expensive Construction Penalty
T5018 is a CRA information return unique to construction. Every subcontractor paid $500 or more in the fiscal year must receive a T5018 statement. The penalty for non-filing is $25 per day per statement, maximum $2,500 per statement. A general contractor with 30 sub-trades, one year late, faces $75,000 in penalties. We prevent this entirely.
| What We Do | How |
|---|---|
| Collect subcontractor business numbers at onboarding | Before the first payment, we obtain each sub's legal name, BN and HST registration status |
| Track all subcontractor payments throughout the year | Every sub payment coded and tracked in your accounting software by vendor |
| Prepare T5018 statements for every sub paid $500+ | Statements prepared with correct BN, legal name and total paid |
| File with CRA by the deadline | Filed within 6 months of fiscal year-end. No late penalties. Confirmation provided. |
Real Exposure: A mid-size GC with 40 sub-trades who misses the T5018 deadline faces up to $100,000 in CRA penalties. This is not theoretical. CRA has increased T5018 enforcement in Ontario construction. We file T5018 for every construction client as a standard part of our service, not as an add-on.
Explore our dedicated support for construction companies, including bookkeeping, tax planning and compliance: Construction Accounting & Tax Services
The 10 GST/HST Errors We Prevent for Construction Clients
| # | Error | What It Costs | How We Prevent It |
|---|---|---|---|
| 1 | Not collecting sub BNs before paying | T5018 penalty: $2,500 per missing statement | BN collected at onboarding, before first payment |
| 2 | Reporting HST on holdback before it is released | Accelerated HST liability, cash flow loss | Holdback deferred until release. Correct timing every period. |
| 3 | Not charging HST on residential renovation | CRA reassessment with interest and penalties | All reno invoices configured with 13% HST from day one |
| 4 | Claiming ITCs on unregistered sub invoices | Over-claimed ITCs reversed on audit | Sub registration verified before every ITC claim |
| 5 | Ignoring self-supply rule | Retroactive HST on FMV plus interest and penalties | Self-supply identified at project start, HST and rebate filed together |
| 6 | Not filing T5018 | $25/day per statement, $75,000+ for mid-size GC | T5018 filed on time for every client. Standard service. |
| 7 | Wrong HST rate on out-of-province project | Under-collection or over-collection of HST | Project location verified. Correct rate applied before invoicing. |
| 8 | HST on deposits not reported in period received | CRA timing discrepancy flag | Deposits calculated at 13/113 and reported when received |
| 9 | Missing equipment rental ITCs | $1,700+ per month in lost ITCs on heavy equipment | Rental invoices captured and ITCs claimed every period |
| 10 | Late HST filing | 1% penalty + 0.25%/month + 8% interest | Calendar managed. Filed before deadline every period. |
Transparent Flat-Fee Pricing
No hourly billing. No surprises. T5018 included at no extra charge.
| Service | Fee | Includes |
|---|---|---|
| GST/HST return filing (per filing) | From $150 | Return preparation, holdback accounting, sub ITC verification, deposit timing, CRA filing |
| Monthly bookkeeping + GST/HST | From $200/month | Full monthly bookkeeping, bank reconciliation, progress billing tracking, HST filing, payroll |
| T5018 subcontractor payment filing | FREE | Included for all construction GST/HST and bookkeeping clients. BN collection, statement prep and CRA filing. |
| Annual T2 corporate tax return | FREE | Included for all HST filing and bookkeeping clients at no additional charge |
| QBO or Xero setup (construction chart of accounts) | FREE | Configured with progress billing, holdback tracking, sub accounts and correct HST codes. Included at onboarding. |
| New Housing Rebate / NRRPR calculation | Included | Federal and Ontario rebate calculated and filed for builder clients as part of the HST service |
Know Your Exact Fee Before We Start
Flat fee, fixed in advance. 30-Day Money-Back Guarantee. 60-Day Fees-Matching Policy.
Construction GST/HST Filing — Cities We Serve
We file GST/HST returns for construction companies across every Ontario city and Canada. No distance limits, no extra fees.
Frequently Asked Questions
What does construction GST/HST filing cost?
From $150 per filing. Includes holdback accounting, subcontractor ITC verification, deposit timing, CRA filing and T5018 included at no extra charge. T2 filed FREE. 60-Day Fees-Matching Policy applies. Know Your Exact Fee →
Is T5018 filing included?
Yes. T5018 subcontractor payment filing is included for all construction GST/HST and bookkeeping clients at no additional charge. We collect BNs, track payments and file statements by the deadline.
How do you handle holdback HST?
We defer HST on the 10% statutory holdback under the Construction Act until the holdback is released and paid to you. This saves cash flow on every project. Many contractors incorrectly report HST on the full invoice including holdback, accelerating their liability unnecessarily.
Is residential renovation subject to HST?
Yes. All construction services on residential property are taxable at 13%. This includes renovations, repairs, additions, roofing, plumbing, electrical, HVAC and landscaping. We configure every client's invoicing to include 13% HST on all residential work. Construction Accounting →
What is the self-supply rule for builders?
If you build a new residential unit and occupy it or rent it to a tenant, you must self-assess HST on the fair market value at first occupancy. We identify self-supply situations at project start and file the self-assessed HST along with the New Housing Rebate or NRRPR to offset it.
Can I claim ITCs on subcontractor invoices?
Only if the sub is HST-registered and charged HST on their invoice. We verify every subcontractor's registration status before claiming the ITC. ITCs on invoices from unregistered subs are rejected by CRA on audit.
What is the New Housing Rebate?
A rebate for buyers of new homes. The federal portion refunds 36% of GST (max $6,300) on homes under $450,000. The Ontario portion refunds 75% of provincial HST (max $24,000) with no price cap. We calculate and apply the rebate for builder clients at closing.
What HST rate applies for out-of-province projects?
The HST/GST rate where the property is located. Alberta: 5% GST. Nova Scotia: 15% HST. BC: 5% GST plus 7% PST on certain materials. We verify the correct rate for every out-of-province project before invoicing.
What triggers a CRA construction GST/HST audit?
Missing T5018 filings, ITCs from unregistered subcontractors, holdback HST timing discrepancies, deposits not reported in the period received, residential reno invoices missing HST and bank deposits exceeding reported revenue. Our process prevents every one of these triggers.
Is the T2 really free?
Yes. Every construction GST/HST filing client receives their annual T2 corporate tax return at no additional charge. This is included in every engagement, not an upsell.
Stop Losing Money on Construction GST/HST. Let a CPA Handle It.
Gondaliya CPA provides construction GST/HST filing, T5018 compliance, holdback accounting and subcontractor tracking. From $150 per filing. T5018 and T2 filed FREE.
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GST/HST Filing from $150/Filing