{"id":432,"date":"2023-10-03T03:50:25","date_gmt":"2023-10-03T03:50:25","guid":{"rendered":"https:\/\/ownrblog-preprod.go-vip.net\/?p=432"},"modified":"2023-12-07T13:51:40","modified_gmt":"2023-12-07T13:51:40","slug":"do-you-have-to-register-for-the-gst-hst-what-you-need-to-know","status":"publish","type":"post","link":"https:\/\/www.ownr.co\/blog\/do-you-have-to-register-for-the-gst-hst-what-you-need-to-know\/","title":{"rendered":"GST\/HST Basics for Your Business"},"content":{"rendered":"

Now that your business is up and running, you might need to add an extra skill to your growing list: tax collector. That’s because once your sales ramp up, you may need to register for, collect, and remit the federal goods and services tax (GST) or, in some provinces, the harmonized sales tax (HST). Don’t worry, we’ve outlined it all for you below!<\/p>\n

Understanding the GST and HST registration requirements can be confusing. The requirements can differ based on where you’re located, how much \u2014 and what \u2014 you’re selling, and where your customers are located. Here’s a quick guide to help you figure out the requirements.<\/p>\n

GST vs. HST<\/h2>\n

The GST is the federal tax most businesses selling goods and services in Canada need to collect from their customers. The GST rate has been 5% since January 1, 2008.<\/p>\n

Some provinces today combine provincial sales taxes with the GST to create the harmonized sales tax, or HST. This means depending on your location, you may need to charge HST instead of GST.<\/p>\n

Do you need to register?<\/h2>\n

Your business must register for a GST\/HST account and charge GST\/HST if you answer \u201cyes” to two questions:<\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0 Does my business sell\u00a0taxable supplies in Canada?<\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0 Is my business generating over $30,000 and therefore not a small supplier?<\/p>\n

What are taxable supplies?<\/h2>\n

Most goods and services in Canada are taxable supplies \u2014 everything from car repairs, hotel accommodations, clothing and shoes, and legal and accounting services \u2014 and most have the full GST rate of 5% applied.<\/p>\n

Some goods and services are categorized as \u201czero-rated” supplies; this means they’re taxable\u00a0at the rate of 0%. Zero-rated supplies include basic groceries, prescription drugs, and some goods and services sold to customers outside Canada. Still other supplies are\u00a0non-taxable, like daycare services and residential rent.<\/p>\n

If your business sells taxable supplies in Canada (at the rate of either 5% or 0%), you must register for the GST\/HST . . . unless you’re a small supplier.<\/p>\n

What is a small supplier?<\/h2>\n

Being categorized as a small supplier depends on how much money your business makes. If your revenue from worldwide taxable supplies was equal to or less than $30,000 in both a calendar quarter and over the last year (the last four consecutive calendar quarters), your business is a small supplier.<\/p>\n

If you’re a small supplier, for the most part you don’t have to register for the GST or HST.<\/p>\n

Here’s how to calculate small supplier status:<\/strong><\/p>\n