GST/HST for Small Business

Do you need a GST/HST number for your business?

For most businesses registering for GST (Goods and Services Tax) and/or HST (Harmonized Sales Tax) is mandatory.

However, businesses that are deemed Small Suppliers do not have to register. The Canada Revenue Agency defines a GST Small Supplier as a sole proprietorship, partnership, or corporation whose total taxable revenue before expenses are $30,000 or less annually.

Even if your business qualifies as a GST Small Supplier, you will want to register anyway. By registering for GST/HST you can ‘reclaim’ the GST/HST that you have paid on purchases for the business through GST/HST Input Tax Credits.

How does GST/HST work?

Once you have registered and have a GST number, you are responsible to charge your clients/customers GST/HST on taxable goods and/or services you supply.

The GST/HST you collect is remitted to the Canada Revenue Agency by completing a GST/HST return either quarterly or annually.

How do you get a GST/HST number?

To get a GST/HST number, you have to apply to the Canada Revenue Agency one of the following three ways;

  1. Online – http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/bro-ide/menu-eng.html
  2. Phone – 1-800-959-5525
  3. Mail or Fax – To your local tax centre

For more information on GST visit: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html

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