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ARTICLE · 28 OCTOBER 2025

Canada Updates Voluntary Disclosure Program (VDP) For GST/HST: New Rules Take Effect October 1, 2025

Rotfleisch & Samulovitch P.C.
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The Canada Revenue Agency (CRA) has announced significant changes to the Voluntary Disclosures Program (VDP) as it applies to GST/HST.

CanadaTax
David Rotfleisch
David Rotfleisch
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Overview

The Canada Revenue Agency (CRA) has announced significant changes to the Voluntary Disclosures Program (VDP) as it applies to GST/HST. The updated rules apply to applications received on or after October 1, 2025, and are designed to simplify the process while incentivizing earlier voluntary compliance. GST/HST registrants, businesses, and their advisors need to understand the revised framework to assess their risk and compliance strategies effectively.

Unprompted, Prompted Applications and New Streamlined Process

The VDP allows taxpayers and registrants to correct past reporting errors without criminal prosecution and with potential relief from penalties and interest. Under the prior system, categories such as the Limited Program and General Program were used to determine the level of relief available. The 2025 revisions modernize the program by introducing clearer categories — unprompted and prompted applications — and by streamlining the application

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