GST/HST registration is mandatory in some cases. It is voluntary in others.
You don’t have to register for GST/HST if:
Your revenue does not exceed $30,000 in a single year. If you are a “public service body” the threshold amount is $50,000.
In this case you are considered a “small supplier” and do not need to register.
Keep in mind that a “single year” is any 4 consecutive quarters. You will need to calculate this amount at the end of each quarter to ensure that you haven’t crossed the threshold.
If you are not registered for GST/HST, you don’t charge it to your customers. You also cannot claim back any “Input Tax Credits” on your purchases.
You may choose to register for GST/HST if you want to – but it is not mandatory in this situation.
You MUST register for GST if:
Your revenue exceeds the threshold amount in a single year – defined as 4 consecutive quarters.
Once you cross the threshold, you will have 29 days to register and begin collecting GST/HST.
After you register for GST/HST, you must collect it on all taxable sales. You are also eligible to claim “Input Tax Credits” for any GST/HST you pay on your business purchases.
You will also need to file a GST/HST return – monthly, quarterly or annually.
You must wait one year before unregistering the GST/HST account if you are no longer using the account.
Have any more questions? Need help with your GST/HST?
We can help you keep your books up to date and file your GST/HST Tax Returns for you.
Contact Ina for a free consultation.
More information about GST is available from the CRA website