The Canada Revenue Agency, or CRA, offers low-income families to benefit from the GST/HST (goods and services tax and harmonized sales tax) refund. Basically, the GST/HST credit is a non-taxable amount paid four times each year to individuals and families with low and modest incomes. The tax credit helps offset the GST taxes paid while purchasing goods or services in Canada.
Are you eligible for the GST/HST tax credit this year?
A single person earning below $52,255 is eligible to apply for the GST/HST refund. For a single parent with two children, the limit increases to $62,175, while for a married couple with three children, the adjusted family income should be below $65,595. Further, the recipient should be a Canadian resident over the age of 19.
If you are single, you could receive up to $496 for the 2022 base year. These payments will be made between July 2023 and June 2024. For married couples, the payout rises to $650, while you will get an additional $171 for each child below the age of 19.
Invest the tax credit in quality growth stocks
Once you receive these tax credits, it’s advisable to invest the proceeds to buy and hold quality growth stocks such as Docebo (TSX:DCBO)and Nuvei (TSX:NVEI) to benefit from compounded gains over time.
An enterprise-facing learning platform provider, Docebo, reported revenue of US$41.5 million in the first quarter (Q1) of 2023, an increase of 29% year over year. Its subscription sales rose 33% to US$38.8 million, accounting for 94% of total revenue.
Docebo enjoys a gross margin of 81%, allowing it to invest aggressively in organic growth. It ended Q1 with an adjusted profit of US$3.2 million, compared to a loss of US$1.8 million in the year-ago quarter.
With annual recurring revenue of $165 million, Docebo should generate stable cash flows across business cycles. Moreover, its widening customer base and rising customer spending will act as long-term tailwinds.
The number of Docebo customers has risen to 3,506 from 2,947 in the last 12 months, while the average contract value has surged to US$47,034 from US$43,875. Analysts remain bullish on DCBO stock and expect it to surge 30% in the next 12 months.
The bull case for Nuvei stock
A fintech TSX stock trading 70% below all-time highs, Nuvei operates in the fintech space. Unlike other high-growth tech stocks, Nuvei reports consistent profits and is forecast to end 2023 with adjusted earnings of $2.83 per share, indicating a forward earnings multiple of 14.6, which is very cheap.
In Q1 of 2023, Nuvei increased sales by 20% to US$256.5 million, while the total volume processed on its platform grew 45% to US$42.4 billion.
The company continues to reinvest heavily to enhance its portfolio of products and services. For example, its tech investments were up 40% year over year, while capital expenditures are within its forecasts.
Nuvei also added alternative payment methods taking the total to 615, which easily allows customers to accept familiar digital payment methods. Analysts tracking NVEI stock expect shares to increase by 60% in the next 12 months.
