Does Your Business Have to Register for GST/HST and/or PST?
Saturday June 27, 2009
Maybe.
In terms of GST (the Goods and Services Tax)
...everyone in Canada who sell goods and services in Canada must charge customers GST HST unless your business qualifies as an exception.
Being a small supplier is one of these exceptions.
However, even if you do qualify as a small supplier, you may want to register for GST/HST anyhow, because if you're not a GST/HST registrant, you won't be able to claim any Input Tax Credits and get back the GST/HST you've paid out in the course of doing business.
How to Register for the GST/HST.
As for PST (Provincial Sales Tax)
You have absolutely no choice. If you live in a province that has a provincial or retail sales tax (as PST is sometimes called) and the goods or services you sell are not PST/RST exempt, you have to register for, collect and remit it. It's not a matter of having to make a particular amount of sales or revenue before you have to register.
How To Charge & Remit The Retail Sales Tax In Ontario explains the basic process using the example of a small retail business in Ontario. This provincial sales tax explanation also applies to small businesses in B.C., Saskatchewan and Manitoba.
Provincial Sales Taxes provides links to provincial tax information for particular provinces.
More on GST/HST and PST/RST
In terms of GST (the Goods and Services Tax)
...everyone in Canada who sell goods and services in Canada must charge customers GST HST unless your business qualifies as an exception.
Being a small supplier is one of these exceptions.
However, even if you do qualify as a small supplier, you may want to register for GST/HST anyhow, because if you're not a GST/HST registrant, you won't be able to claim any Input Tax Credits and get back the GST/HST you've paid out in the course of doing business.
How to Register for the GST/HST.
As for PST (Provincial Sales Tax)
You have absolutely no choice. If you live in a province that has a provincial or retail sales tax (as PST is sometimes called) and the goods or services you sell are not PST/RST exempt, you have to register for, collect and remit it. It's not a matter of having to make a particular amount of sales or revenue before you have to register.
How To Charge & Remit The Retail Sales Tax In Ontario explains the basic process using the example of a small retail business in Ontario. This provincial sales tax explanation also applies to small businesses in B.C., Saskatchewan and Manitoba.
Provincial Sales Taxes provides links to provincial tax information for particular provinces.
More on GST/HST and PST/RST
- Starting a Business: Register for the GST explains how GST/HST works and the GST/HST registration process.
- Common Questions About the GST/HST is a handy guide to the ins and outs of charging the GST, filing and remitting the GST, and dealing with the GST as a non-resident.
- The PST (RST) for Small Businesses explains how Provincial Sales Tax works.
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