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Can I close my GST account if my business situation changes?

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Question: Can I close my GST account if my business situation changes?
Answer:

Yes, you may close (deregister) your GST account.

If, for instance, your small business' revenue drops below the $30,000 annual threshold which means that you have to charge GST, you can close your GST account and reclaim your small supplier status according to the Canada Revenue Agency. However, you must have been a GST registrant for at least one full year before they will close your account.

(Remember that to be a small supplier,your total taxable revenues (before expenses) from all your businesses must total $30,000 or less in the last four consecutive calendar quarters and in any single calendar quarter.)

You may also close your GST account and stop charging and remitting GST if you sell or close your business, or if you are no longer making taxable supplies. See Deregistering (closing) your GST/HST account on the Canada Revenue Agency's website for details.

To close your GST account, you will need to complete Form RC145, Request to Close Business Number Accounts (BN) and send it to your tax services office or call the Business Window at 1-800-959-5525.

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