Do you know about a GST number? Owning a business requires a GST to claim GST/HST on the items you purchase. A goods and services number help to identify your business in Canada. It also recognizes other business dealings that your company has with the CRA. For instance, if your business has employees, you will use your GST for your payroll deductions account. This blog will provide you with guidelines about GST/HST and information about GST/HST Registration Process.
1. Defining the GST Number
The GST number, also known as a business number (BN), is a 15-digit tax number given to a legal entity by the Canada Revenue Agency during account registration. For example:
1 2 3 4 5 6 7 8 9 R P 0 0 0 2
3 Parts of GST Number:
The GST comprises three parts:
- The first part (123456789) is the nine-digit Business Number (BN) that identifies with your business.
- The second part (RP) is the two-letter identifier for the program type.
- The third part (0002) is the four-digit number that connects with the program account.
2. Why register for a GST Number?
All businesses need to register for their GST/HST in Canada. When starting a business, it is better to register for GST as soon as possible to claim GST/HST on the items that you buy for your business startup. You have to register for a GST for the following reasons:
- You are not a small supplier. A small supplier is a person whose income from all taxable supplies equals or less than $30,000.
- You make some taxable sales or supplies in Canada. Your taxable supplies must be your personal property sold other than in the course of a business.
3. How to Register for GST/HST Number?
To initiate the registration process for the GST, you have to apply to the Canada Revenue Agency. You can do registration in three ways. These are as follows:
You can register for GST through Business Registration Online (BRO). In addition, through the help of the business registration process, you can register for other CRA program accounts such as HST, payroll, corporation income tax, etc. The online registration process asks for your personal information, such as your social insurance number (SIN) and business number. A business number is a 9-digit number specified for a legal entity.
If you want to register for GST through an online method, you can do so by phone. For example, you can register by phone for a business number or CRA accounts (GST, income tax, payroll, etc.) by calling CRA at 1-800-959-5525.
You can register for GST/HST by email or fax to the nearest tax center.
Once the GST/HST number registration completes, you are free to collect and remit the HST or GST. For more information regarding how to collect GST/HST, you can view our other blog, How to start charging and collecting GST/HST
4. What is Business Registration Online (BRO)?
Business registration online is a secure portal to register for CRA programs online. You can register for the following program accounts through Business registration online:
- Corporation Income tax
- Payroll Deductions
- Information returns
- Registered charity
Let’s Wrap Up Our Discussion!
When you start your business, it is wiser to understand the procedure of GST/HST and to know how the GST impacts your business. As a business owner in Canada, it is mandatory to know about the requirements for GST, so you may not face any difficulty. If you register for a GST number for your business at startup, you can save yourself from filing penalties. For additional information about the registration process for the GST, you can contact us either online, or you may also visit our office situated in Mississauga.