Depending on your business you may have to register GST/HST account.
Mandatory GST/HST account registration
You have to register for a GST/HST account if:
- you provide taxable supplies in Canada; and
- your business total amount of all revenues (before expenses) is more than $30,000 in four consecutive calendar quarters.
Voluntary GST/HST account registration
If you are a small supplier, which means your business gross annual revenue is less than $30,000, and you are making taxable supplies of goods and services in Canada, you can register voluntarily.
If you decide not to register for the GST/HST,
- You do not charge the GST/HST to your customers
- You cannot claim an input tax credit (ITC) to recover the GST/HST paid or payable on your purchases and operating expenses
If you decide to register for the GST/HST,
- Your effective date of registration is usually the date you applied to be registered. However, the CRA will accept an earlier effective date, if the date is within 30 days of the date of the application for registration.
- You have to charge, collect, and remit the GST/HST on your taxable supplies of goods and services
- You have to file GST/HST returns on a regular basis
- You may claim ITCs to recover the GST/HST paid or payable on your purchases and operating expenses
- You have to stay registered for at least one year before you can cancel your registration (unless you stop your commercial activities).
You cannot register for a GST/HST account if you provide only exempt goods and services.
What do you need to decide while registering for a GST/HST account
You have to choose has a fiscal year for GST/HST purposes. The CRA use this fiscal year to determine when your GST/HST returns are due. In most cases, you can choose your GST/HST fiscal year the same as a calendar year, which begins on January 1 and ends on December 31.
When you register for a GST/HST account, the CRA assign you a reporting period. If you annual revenue is less than $1,500,000, you will be assigned annual reporting period. You also have the option to file monthly or quarterly by making an election.
How do you register for a GST/HST account?
You can register electronically through the link http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/bro-ide/menu-eng.html
You can register for a business number (BN) and CRA program accounts by calling 1-800-959-5525.
By mail or fax
You can register for a business number (BN) by using Form RC1, Request for a Business Number and mailing or faxing it to your local tax centre.