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.
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The HST Rules That Cost Ontario Contractors Thousands Every Year
No industry in Ontario faces more GST/HST complexity than construction. Progress invoices trigger HST the moment they are issued, not when the cheque clears. The 10% statutory holdback under the Construction Act lets you defer HST until release, but most contractors report it early and hand CRA tens of thousands in accelerated payments. Deposits owed HST at 13/113 the day they hit your bank. One subcontractor invoice from an unregistered trade and CRA reverses the entire ITC on audit. Miss a T5018 filing and you face $2,500 per statement in penalties, $75,000 or more for a mid-size GC.
We handle construction HST compliance end to end. Every filing includes subcontractor registration verification, holdback deferral tracking, deposit timing, progress billing reconciliation and a complete ITC recovery pass across materials, equipment rentals and fuel. T5018 filing is included FREE. T2 filed FREE. From $150 per filing, flat fee, no hourly billing.
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Our Construction GST/HST Filing Services
GST/HST Return Filing
Monthly, quarterly or annual HST return preparation and CRA filing. Progress billing, holdback deferral and deposit timing verified every period.
T5018 Compliance
Subcontractor BN collection, payment tracking and T5018 statement filing by the CRA deadline. Included FREE for all construction clients.
Holdback Accounting
HST on the 10% statutory holdback deferred until released and paid. Correct timing every period. Cash flow preserved on every project.
Subcontractor ITC Verification
Every subcontractor's HST registration verified before claiming the ITC. Unregistered sub invoices flagged. No ITCs reversed on audit.
Self-Supply and Rebates
Self-supply HST identified at project start. New Housing Rebate and NRRPR calculated and filed to offset. No retroactive surprises.
Progress Billing and Deposits
HST on progress invoices reported in the correct period. Deposits calculated at 13/113 and reported when received. Change orders tracked separately.
Construction GST/HST Filing by a Licensed CPA
Every aspect of construction HST handled correctly. From holdback deferral to T5018 compliance. AFFORDABLE flat-fee pricing.
Progress Billing and Holdback HST
Construction billing has unique HST timing rules. We apply them correctly on every project.
- Report HST on each progress invoice in the filing period the invoice is issued, not when payment is received.
- Defer HST on the 10% statutory holdback under the Ontario Construction Act until the holdback is released and paid.
- Track change orders and additional billings separately so HST is reported on the correct amount in the correct period.
- Calculate HST on deposits and advances at 13/113 and report in the period the deposit is received.
- Reconcile progress billing to bank deposits each period so CRA sees no discrepancy between invoiced and reported revenue.
Subcontractor ITC Verification
One unregistered sub invoice claimed as an ITC can trigger a full audit. We verify every one.
- Verify each subcontractor's HST registration number with CRA before claiming the input tax credit.
- Flag invoices from unregistered subcontractors and exclude them from ITC claims on the HST return.
- Maintain a verified subcontractor registry for your company so new subs are checked at onboarding.
- Document the verification for each sub so you have a defensible record if CRA requests support.
- Claim ITCs on all verified subcontractor invoices, equipment rentals, materials, fuel and professional fees.
T5018 Subcontractor Payment Filing
The most expensive penalty in construction. We prevent it entirely.
- Collect each subcontractor's legal name, business number and HST registration status before the first payment.
- Track all subcontractor payments throughout the fiscal year by vendor in your accounting software.
- Prepare T5018 statements for every subcontractor paid $500 or more during the fiscal year.
- File T5018 statements with CRA within 6 months of fiscal year-end. No late penalties. Confirmation provided.
- T5018 filing included FREE for all construction GST/HST and bookkeeping clients. Not an add-on.
Self-Supply Rules and Builder Rebates
Builders who occupy or rent their own new units face a self-supply HST obligation most miss entirely.
- Identify self-supply situations at project start so there are no retroactive HST surprises at occupancy.
- Self-assess HST on the fair market value of the unit at first occupancy as required by CRA.
- Calculate and file the New Housing Rebate (federal 36% of GST, max $6,300 on homes under $450,000).
- Calculate and file the Ontario New Housing Rebate (75% of provincial HST, max $24,000, no price cap).
- File the New Residential Rental Property Rebate (NRRPR) for units rented to tenants to offset the self-supply HST.
Place-of-Supply and Out-of-Province Projects
Ontario's 13% does not apply to every project. We verify the correct rate before you invoice.
- Verify the HST/GST rate based on the province where the construction property is physically located.
- Apply Alberta's 5% GST, Nova Scotia's 15% HST, BC's 5% GST plus 7% PST on certain materials, or the correct rate for any province.
- Configure invoicing templates with the correct tax rate per project so no manual override is needed.
- File GST/HST returns reflecting the correct tax rate for each project location across all provinces.
- Prevent over-collection or under-collection that triggers CRA review on cross-provincial construction work.
CRA Filing and Compliance
Filed on time, every period. No penalties. No interest. No audit triggers.
- Prepare and file the GST/HST return (GST34) through CRA for each filing period: monthly, quarterly or annual.
- Calculate net tax owing (HST collected minus ITCs) or refund amount and notify you before the filing deadline.
- Manage your filing calendar so no deadline is missed, preventing the 1% late-filing penalty and 0.25%/month compound interest.
- Respond to CRA notices, assessments and review letters related to your HST account on your behalf.
- File your annual T2 corporate tax return at no additional charge for every construction GST/HST filing client.
Free Construction GST/HST Filing Consultation
Free Construction GST/HST Filing Consultation
Case Studies: Construction GST/HST Filing
General Contractor, Vaughan (T5018 Penalty Averted)
A general contractor with 35 sub-trades had never filed T5018 statements. Two years of non-filing meant potential penalties of $175,000 ($2,500 x 35 subs x 2 years). We collected BNs from all 35 subcontractors, prepared 70 T5018 statements across both years and filed voluntarily before CRA enforcement. No penalties assessed. T5018 now filed annually as part of the standard engagement. Cost: $150/filing ongoing. Construction Accounting →
Home Builder, Brampton (Holdback HST Cash Flow)
A residential builder was reporting HST on the full invoice amount including the 10% statutory holdback on every progress bill. Over 4 active projects totaling $3.2M in contracts, the builder was accelerating $41,600 in HST payments unnecessarily. We restructured the holdback accounting to defer HST until release. Cash flow improved by $41,600 across the project cycle. Cost: $200/month bookkeeping + $150/filing. HST Filing Services →
Renovation Contractor, Mississauga (CRA Audit, Unregistered Subs)
A renovation contractor was claiming ITCs on invoices from 3 unregistered subcontractors. CRA audited and proposed reversing $18,400 in ITCs plus interest. We separated the verified sub invoices from the unregistered ones, demonstrated the contractor had no reasonable way to verify at the time, and negotiated the reassessment down to $6,200. Going forward, every sub is verified at onboarding. Cost: $400 CRA response + $150/filing ongoing. Get Started →
Condo Builder, Toronto (Self-Supply HST on Rental Unit)
A condo builder retained 2 units as rental investment properties. CRA assessed self-supply HST on the fair market value of both units at first occupancy: $156,000 in HST owing. We calculated the NRRPR (New Residential Rental Property Rebate) for both units and filed the rebate applications. Net HST liability after rebate: $31,200. The builder had not been aware of the rebate. Cost: included in the standard engagement.
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
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. |
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. |
Why Choose Gondaliya CPA for Construction GST/HST Filing?
Construction Specialists
We file HST for GCs, subs, builders and reno contractors across Ontario. T5018, holdback, self-supply and rebates built into every engagement.
Filed On Time, Every Time
Calendar managed. Deadlines tracked. No late-filing penalties. No T5018 penalties. Every period filed before the due date.
CRA Compliance
Every construction HST rule applied correctly. Holdback timing, sub verification, self-supply, deposits, place-of-supply. CRA notices handled.
AFFORDABLE Flat Fee
From $150 per filing. T5018 FREE. T2 FREE. No hourly billing. 30-Day Money-Back Guarantee. 60-Day Fees-Matching Policy.
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.
How It Works
Four steps. We handle the complexity. You build.
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.
Verify
We verify every subcontractor's HST registration, track progress invoices, holdbacks, deposits and change orders for the period.
Calculate
We calculate HST collected (with holdback deferral), ITCs on verified purchases, and determine net tax owing or refund.
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/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
Meet Your Construction HST Filing Specialists
Sharad Gondaliya, CPA
Founder & Managing Director
Gondaliya CPA Professional Corporation
Sharad manages all construction GST/HST filing engagements, T5018 compliance and CRA correspondence.
Vandana Goel, CPA
Senior Accountant
Gondaliya CPA Professional Corporation
Vandana handles holdback accounting, subcontractor ITC verification, progress billing reconciliation and HST return preparation.
What Our Clients Say
1300+ five-star reviews from business owners across Ontario and Canada.
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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.