Canada GST Registration

Canada GST Registration

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Register your business now with Canada Revenue Agency and obtain your Canada Business Number easily over the Internet. Company Formations simplifies to the maximum the task of registering your new business for the GST “Goods and Services Tax” in Canada, by offering an easy online GST registration service in three easy steps.

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A professional and reliable service
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Canada GST/HST Registration

Goods and Services Tax (GST) is a 5% tax charged on most goods and services sold in Canada. GST is administered by the Canada Customs and Revenue Agency (CRA).

All businesses in Canada, whether incorporated or unincorporated, must register under the GST, if they are providing taxable goods and services in Canada and their worldwide taxable sales in any consecutive 12 month period exceeds $ 30.000.

Five provinces (Nova Scotia, New Brunswick, Newfoundland, Ontario and Prince Edward Island ) harmonized their provincial sales tax with the GST to create the harmonized sales tax (HST). The HST applies to the same base of goods and services as the GST, but a rate of 13% (Ontario, New Brunswick, Newfoundland, 14% (Prince Edward Island) and 15% (Nova Scotia). Of this, 5% is the federal part and 8%, 9% or 10% is the provincial part.

Although the consumer ultimately pays the GST/HST, generally businesses are responsible for collecting and remitting it to the government. Businesses that must register or that register voluntarily for the GST/HST are called registrants.

As a GST/HST registrant, you charge 5% GST or 13% HST on the taxable goods and services (other than zero-rated) you sell, lease, transfer, or provide in some other way.

Registrants can claim a credit to recover the GST/HST that is paid or payable on purchases used to provide taxable goods and services.

This credit is called an input tax credit and can be claimed for the GST/HST paid or payable for goods or services acquired or imported for use, consumption or supply in their commercial (taxable) activities.

GST/HST registrants who provide taxable goods or services have to charge the GST or HST on their sales. If the GST/HST charged is greater than the GST/HST paid or payable, the difference is sent to the Canada Revenue Agency.

Registrants in Quebec send their payment to the Ministère du Revenu du Québec. If the GST/HST charged is less than the GST/HST paid or payable, a refund can be claimed.

Examples of goods and services taxable at 5% or 14% – 15% include:

commercial rent;
sales and leases of automobiles;
clothing and footwear;
legal and accounting fees;
hotel accommodation; and
Zero-rated goods and services

If you provide zero-rated goods and services, you do not charge GST to your clients but you can claim input tax credits. Zero-rated goods and services include:

basic groceries such as milk, bread, and vegetables;
certain prescription drugs and medical devices;
most farm products and livestock;
most fishery products; and
Exports (most goods and services taxable at 5% or 14% in Canada are zero-rated when exported).
Exempt goods and services:

When you provide exempt goods and services, you do not charge GST/HST to your client and you cannot claim input tax credits. In general, when you provide only exempt goods and services, you cannot register for GST/HST. Examples of exempt goods and services include:

long-term residential rents and residential condominium fees;
day-care services provided primarily to children 14 years old and younger;
most medical and dental services;
most financial services; and
legal aid services
You have to register for GST/HST if you are in one of the following situations:

You are an operator of taxi or limousine services (regardless of your revenues).

Your worldwide revenues (and those of your associates) from taxable goods and services are more than $30,000 in your last four consecutive calendar quarters or in one single calendar quarter.

If you are a public service body (charity, non-profit organization, municipality, public college, university, school authority, or hospital authority), this limit is $50,000. Special rules also apply to charities and public institutions.

You are a non-resident who enters Canada to charge admission directly (the admissions are not made by a resident promoter or ticket agent) to audiences at activities or events in Canada. This rule does not apply if the admissions relate to a convention where at least 75% of the attendees are non-residents of Canada.

You solicit orders in Canada for prescribed goods to be sent to Canada by mail or courier, and your worldwide taxable sales (and those of your associates) are more than $30,000 over the past four consecutive calendar quarters or in a single calendar quarter ($50,000 if you are a public service body). Prescribed goods include printed materials, such as books, newspapers, periodicals, and magazines, and an audio recording that relates to those publications and that accompanies the publications when they are sent to Canada.

Voluntary registration

Generally, you do not have to register for GST/HST if your worldwide revenues are $30,000 or less ($50,000 for public service bodies). If you do not exceed these limits, you are considered a small supplier. However, you can register voluntarily. You may want to do so for the following reasons:

You want to claim input tax credits to recover the GST/HST you pay or owe on your business purchases.

You are starting your business activities and you want to register before your total worldwide revenues of taxable goods and services exceed $30,000 or $50,000.

Your clients may do business only with registered businesses.

If you decide to register voluntarily, you have to charge, collect, and remit GST/HST on your sales of goods and services that are taxable at 5% or 13%. You will also have to file GST/HST returns on a regular basis.