Guelph Solar Mechanical Inc., installers of photovoltaic PV solar panel systems, solar thermal hot water systems and solar pool heaters in Guelph, Kitchener, Waterloo, Cambridge, Puslinch and Wellington County, Ontario.
Here is some helpful info for clients who have installed a MicroFIT system. You can always feel free to contact us for more information as well!
1. First Year
In your first year with a solar installation, you will receive a package from the CRA with information on filing for your first solar tax return. This is to get back the HST that you paid on your system. If you registered quarterly, you will receive this in the first quarter, if you registered yearly, you will receive this in the first year. Thereafter, you can use the Quick Tax Method below.
2. Second Year and Following: Quick Tax Method: Calculating HST Repayment can be Easy
Guelph Solar does not provide tax advice - but one of our veteran solar microFIT families (Thanks Marilyn!) has shared how the use the Quick Tax Method after the second year to easily complete their on line HST reporting and save on taxes. Under the standard HST report (vs the Quick HST report) you remit almost all of the 13% HST that you collect from your Hydro company to the CRA. Using the Quick Method you only need to remit about 8% to the CRA - and it is easy!
If you have any doubts, call the CRA to make sure you are doing your HST reports correctly - but here are Marilyn's steps:
Go to CRA website. You don’t need to log into your business account
Click on ‘Businesses’
Under ‘Online Services’, click on GST/HST Netfile
Click on ‘Ready to File’ box; at the bottom of the page, click on ‘Continue’
Enter your Business # and reporting period and answer all questions ‘No’;
click on ‘Next’
On line 101 - enter the total income, including HST, for the reporting period
(quarterly or annually)
On Line 105 - multiply the amount in Line 101 by 8.85% and enter the amount
On Line 108 - multiply the amount in Line 101 by 1% and enter the amount
Click on ‘Calculate’ box at the bottom of the page
Click on ‘Finish’
Print Confirmation Form
You can now set up 'direct pay' from your financial institution