Canuckbusiness

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When do I have to register for GST/HST?

What is the GST/HST process for small businesses?

Imagine yourself as a modern Sheriff of Nottingham, without pillaging rights, and you will have a good idea of the process. First, you charge your customers GST/HST on what they buy from you (tax the serfs). Then, at the end of the period, you take the total amount of GST you collected and deduct any GST you paid when buying stuff for your business (horses and ale for your men). Then you submit the balance to Prince John, I mean the government (or get a refund if you paid out more in GST/HST than you collected).

Do I have to register for GST?

If your business meets one of these conditions you MUST register and begin collecting GST/HST for the government.

    1. If sales from your business exceed $30,000 for any single 3-month period (one quarter).
    2. If sales from your business exceed $30,000 for any consecutive 12-month period (4 quarters).
    3. If you are a taxi or limousine operator whose fares are regulated by law, no matter how much your sales are.

Voluntary registration

You can register even if you make less than $30,000 in sales. Why would you wish to do this? The only reason I can think of is your business purchased a lot of things in its start-up phase and you wish to get the HST/GST back on these things. Otherwise it is probably going to be a waste of time.

Here’s a link for more details.

 

September 22, 2011 - Posted by | Random Questions, Running Your Business, Starting Your Business

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