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December 12, 2016 / by riyadeol / Uncategorized / No Comments

Registering for a GST/HST account

Do you have to register?

You have to register for a GST/HST account if you meet both of these conditions:

  • you provide taxable (including zero-rated) property and services in Canada in the course of your commercial activity
  • you no longer qualify as a small supplier

To find out if you are small supplier, go to Small supplier limit calculation.

You have to register for a GST/HST account if you operate a taxi or limousine operator, even if you are a small supplier.

Special rules also apply for charities and public institutions and public service bodies that are not charities.

Even if you are not required to register, it might be beneficial for you, as you may be able to claim some input tax credits on the GST/HST paid and payable on your business purchases and expenses.

For more information, see Mandatory GST/HST registration and You do not have to register if:

  • you are a small supplier that does not carry on a taxi or limousine business
  • your only commercial activity is the sale of real property other than in the course of a business (although you do not have to register in this case, your sale of real property may still be taxable and you may have to charge and collect the GST/HST)

How do you register?

There are three ways you can register:

  • online
  • by telephone
  • by mail or fax

You can register for a business number (BN) and one or more Canada Revenue Agency (CRA) program accounts at the same time.

What is your effective date of registration?

Your effective date of registration for the GST/HST depends on whether your registration is mandatory or voluntary. You must begin to collect the GST/HST and may be eligible to claim input tax credits starting on that effective date.

Mandatory registration

Your effective date of registration is usually the date you have to register, which is when you meet both these conditions:

  • you provide taxable (including zero-rated) property and services in Canada in the course of your commercial activity
  • you no longer qualify as a small supplier

If you operate a taxi or limousine service, your effective date of registration is the day you begin to operate that service.

Voluntary registration

The effective date of your voluntary registration is usually the date the CRA receives your application. We will also accept an earlier effective date, if it is within 30 days of receiving your application.

What happens after you are registered?

Once you have registered a new GST/HST account, the CRA may contact you for information. Having complete and correct information on file for your business allows us to serve you better.

As a GST/HST registrant, you are required to and responsible for:

  • charging the customers GST/HST
  • filing a GST/HST return
  • paying the GST/HST (including instalment payments)
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