Do You Have to Charge GST or PST?

Jason writes,

"If... you only do one or two jobs a month, are you expected to charge PST and GST? One part of the Web site says you don't have to register for GST if you bring in less than 30,000 a year. Does this hold true for PST? Is there a certain amount you can invoice before adding PST to an invoice? Is it even legal to invoice without having a registered business? I have run into situations where businesses don’t mind paying an invoice without PST/GST as if it was okay. Can you do some odd jobs without PST/GST and just claim the income on your tax return?"

My Reply

Basically you are expected to charge GST/HST and or PST unless there is a special reason why you don’t have to, such as the GST rule you refer to, being a small supplier and not having to charge GST/HST if you make less than $30,000.

There’s no such rule about PST, though. If your products or services are not PST exempt in your province, you need to charge PST. The number of sales you make is irrelevant.

As for invoicing, there is no requirement to be a registered business to invoice. Many businesses are sole proprietorships that do not have to register because they operate under the owner’s legal name - and those businesses invoice too, of course. Here's how to invoice and an invoice sample that you can use.

More on GST/HST

More on PST