Are You Eligible for the $496 GST/HST Refund in 2023?

The GST/HST refund is given to low- and modest-income families in Canada. Here’s how you can use the tax credit to invest in growth stocks.

| More on:
question marks written reminders tickets

Image source: Getty Images

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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nuvei. The Motley Fool recommends Docebo. The Motley Fool has a disclosure policy.

More on Tech Stocks

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

1 of the Best Canadian AI Stocks (With Dividends) to Buy Now

OpenText is an AI stock that trades at a significant discount to consensus price target estimates in June 2024.

Read more »

online shopping
Tech Stocks

3 Reasons to Buy Shopify Stock Right Now

Improving earnings quality, sustained cash flow growth, and another reason support a buy-the-dip thesis on Shopify (TSX:SHOP) stock today

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Tech Stocks

2 Canadian Growth Stocks I’d Stash in a TFSA for the Long Run

Here's why Constellation Software (TSX:CSU) and Shopify (TSX:SHOP) are two top Canadian stocks long-term investors should consider.

Read more »

Wireless technology
Tech Stocks

Predictions for the Top Canadian Tech Stocks in June 2024

Whether it's the growth of artificial intelligence or e-commerce, these three tech stocks offer massive growth in June and beyond.

Read more »

Golden crown on a red velvet background
Dividend Stocks

These 5 Stocks Have Unstoppable Dividend Growth

These five stocks can form a diversified stock portfolio of dividend aristocrats from the TSX.

Read more »

Online shopping
Tech Stocks

Up 42% from 52-Week Lows, Is Shopify Stock Still a Buy?

Shopify (TSX:SHOP) stock looks like one of Canada's best growth stocks. And right now, it looks like it's on sale,…

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

NVIDIA’s Historic Stock Split: Too Late to Invest?

Open Text Corp (TSX:OTEX) is a Canadian AI stock that uses NVIDIA (NVDA) chips.

Read more »

A microchip in a circuit board powers artificial intelligence.
Tech Stocks

“Goldilocks Conditions”: How AI Adoption Is Fuelling Stock Market Gains

Conditions look just right for the "Goldilocks Effect," and AI stocks are fuelling the way. But this could be the…

Read more »