If you operate a business in Canada, the process for sorting out taxes might seem intimidating at first. Fear not, we have got you covered! One of the major steps toward compliance and business growth involves registration for a GST number. Whether you are a new or returning applicant wanting clarity on how to get your GST registration number, how to do it online, all the way to how to cancel such, this guide will walk you through it.
What is a GST Registration Number?
First, let’s get back to the basics. A “GST registration” number is assigned by the Canada Revenue Agency to those businesses that have registered for the Goods and Services Tax, or, as most know it, Harmonized Sales Tax. It forms part of the Business Number assigned to you by the government for the tracking of your tax payment and filing.
Who needs a GST registration number?
Here’s a simple guide to know when you should register for GST in Canada:
- You Earn Over $30,000 a Year:
– If your business makes more than $30,000 in total revenue over four calendar quarters (or in just one quarter), you must register for GST. - You Want to Register Voluntarily:
– Even if you make less than $30,000, you can register by choice.
– This can help you claim back the GST you pay on business expenses and look more professional to clients. - You Run Certain Types of Businesses:
– If you’re a rideshare driver, sell online, or provide certain services, you may need to register, even if you’re under the $30,000 limit. - You Sell in Canada but Live Outside the Country:
– If you’re a non-resident selling goods or services in Canada, you might need to register for GST based on your business activities. - You Operate in Certain Provinces:
– If you’re in provinces with HST (like Ontario or Nova Scotia), you’ll need to register if your revenue exceeds the limit.
Why should you register for GST?
Non-registration under GST attracts penalties, loss of opportunities in claiming a tax credit, and reputational risks, too. Here is why online registration under GST makes sense:
- Compliance: Fulfill your legal requirements and eliminate fines.
- Input Tax Credits: Claim credits for the GST/HST you pay on business expenses.
- Professionalism: Many clients consider a registered business to be more trustworthy.
Where to Get GST Registration Number
Getting a GST number is relatively straightforward and can be completed online, by telephone, or via post. Let’s check out all the avenues:
Online Registration
The easiest and quickest way is to register online. Go to the CRA’s page to register your business, and follow these steps:
Log In: Log in to the CRA My Business Account. Not registered yet? Create a business account-it only takes a few minutes and it is secure.
Create Account: Click “Register for a program” and GST/HST will appear in the list.
Business Information: Provide your business name, address, and estimated annual revenue.
Complete Registration: Verify your information and affirm it. You will instantly receive your GST registration number.
Need Help?
If you are not sure of this, you could contact the Incorp Pro at 647-945-8873 and we will be happy to assist you with the GST registration. The easiest way to register for GST is to do it online on Incorp Pro website. All you need to do is to complete a simple form and we will do the rest for you:
Step-by-Step Process to Register for GST Online
To make it even simpler, here’s a quick checklist for online GST registration:
- Have your Business Number BN ready. If you don’t happen to have one, then you can get that during the same process.
- Estimate your annual revenue to determine whether you will have to collect the GST/HST.
- Know what the applicable rate of GST/HST is for your province or territory.
- Log into CRA’s web portal. Register at the web portal by filling in the registration form provided therein.
And that’s it! You will immediately receive an acknowledgment of the receipt of the GST registration number after submission.
How to Cancel GST Registration
Sometimes, businesses need to cancel their GST registration. Maybe you are closing your business, or falling below the revenue threshold. Whatever be the reason, here’s how you do it:
Conditions for Cancellation
You can cancel your GST registration in the following cases:
- Your annual revenue has fallen below $30,000.
- You shut down operations or close a business.
- Your business merges or changes ownership.
Steps to Cancel the GST Registration
Inform CRA: Using your CRA My Business Account, log in and click “Cancel Registration”. Alternatively, call 1-800-959-5525.
Provide a Reason: Explain the reason for cancellation, such as ceased operations or decline in revenue.
File Final Returns: Submit any outstanding GST/HST returns and pay any taxes owing.
Receive Confirmation: CRA confirms cancellation upon processing and advises on further steps.
Advantages of Voluntary Registration under GST
If your business earns less than $30,000, you may ask why bother with GST registration online. Well, here are several solid reasons:
- Input Tax Credits: Claim back the GST/HST on all business-related expenditures, including office supplies, equipment, and advertising.
- Competitive Advantage: Huge clients would prefer dealing with a registered business.
- Future Growth: The more revenue you generate, the more time and headaches being pre-registered can save.
FAQs on GST Registration in Canada
1. What is a GST Registration Number?|
It is an identification number given to businesses registered under the Goods and Service Tax/Harmonized Sales Tax. It helps the CRA in tracking tax payment and compliance.
2. Where to Get a GST Registration Number?
You can get this online from the CRA portal, by telephone, or by mail. Online registration is the fastest way.
3. Do I have to pay GST if I make less than $30,000?
If your revenue does not exceed the $30,000 threshold over four consecutive calendar quarters, you are considered a small supplier and are not required to register for GST/HST. However, you may choose to register voluntarily if you engage in taxable sales, leases, or other supplies within Canada.
4. Who is eligible for GST?
In general, Canadian residents aged 19 or older are eligible for the federal GST credit, which is distributed quarterly to those who qualify. If you have a spouse or common-law partner, the credit will be issued for them as well. The payment will be made to the partner who files their tax return first.
5. Does my small business need to pay GST?
If your business earns more than $30,000 in gross revenue annually, you are required to charge and remit GST. However, if your business initially earns less than this amount, you are considered a small supplier and are not obligated to charge GST.
6. How to Cancel GST Registration?
Log in to the CRA account or call their helpline. Give a reason for cancellation and file pending returns before the process is complete.
7. Consequences of not registering.
If your sales exceed $30,000 and you fail to register, you may be liable for all back taxes, interest, and penalties.
Final Thoughts
You don’t have to worry about the registration process with Canada’s GST. Take the time to get registered for a new entrepreneur or an established business owner, while ensuring compliance, tax benefits, and success. Ready to get started? Go onto the CRA’s website today and complete your GST registration online. If you need help, Incorp Pro is here for you!
If you’ve got your GST number registration complete, keep it handy for invoicing, returns, and audits. And remember-if your situation changes, cancelling your GST registration is just as easy. Take control of your business’s taxes today and embark on an uninhibited path towards compliance and growth!