When is GST/HST registration voluntary?
- if you are a for-profit business AND your revenue does not exceed $30,000 in a single year
- if you are a “public service body” AND your revenue does not exceed $50,000 in a single year
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.
When 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.
When is GST/HST registration mandatory?
- Your revenue exceeds the threshold amount in a single year – defined as 4 consecutive quarters.
- Once you cross the threshold, you 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 eligible to claim “Input Tax Credits” for any GST/HST you pay on business purchases.
- You 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 liable.
More questions? Need help with your GST/HST?
More information about GST is available from the CRA website
We can help you keep your books up to date and file your GST/HST Tax Returns for you.