Registration for GTS/HST Account:

by | Jun 9, 2022

Registration of  GST/HST account: Having your own business is satisfying in many ways like you achieve your goals, you get to be your boss, fulfill your dreams, and so on. But on the other hand, there are so many responsibilities in it. One of the many responsibilities is when you are required to charge taxes for goods and services etc. GST/HST registration is important to make sure your business is registered and you collect tax on your purchases. You can avoid penalties if you don’t register, but GST/HST is a huge part of our economy, so it’s important to be trained and prepared so you can charge GST/HST on everything you purchase for your business (including inventory).

At Yogi & Associates, we understand how important it is for all businesses to keep track of their transactions and be able to collect taxes from the government. So, we are here for you as we offer affordable and convenient services to help you in this regard.

1. What is a Small Supplier?

According to CRA, A small supplier whose annual GST/HST taxable sales are less than $30,000 or less than $50,000 for public service bodies (college, hospitals or organizations, etc.) 

Registration for GTS/HST Account:

2. How Does a Small Supplier Work?

Suppose, if a person owns a toy shop in Mississauga, and these are his taxable earnings shown in the table below:

Quarterly Ending June 30th $8,000
Quarterly Ending September 30th $5,000
Quarterly Ending September 31st $6,000
Quarterly Ending March 31st $10,000
Total $29,000

This person collects $29,000 earnings for all four consecutive quarters’ which means he doesn’t have to register for GST/HST. If he makes more than $30,000, then the tiny supplier exemption ends, which means:

  • GST/HST must be collected.
  • The business must register for GST/HST account within 30 days.
Registration for GTS/HST Account:

3. Advantages to Registration for GST/HST Account:

  • You can claim Input Tax Credits for all your business purchases.
  • You will get more clients to do business with as most of them do business only with companies registered for GST/HST.
  • You can also refund the taxes you paid on supplies or purchases you made for your business.

If you want to learn about Input Tax Credit (ITCs), you can see our article by clicking here: Input Tax Credits

4. Register for GST/HST Account:

A GST/HST number is a part of your Business Number (BN). For example:

                                                  123456789 RP 0002

  • The first nine digits are your Business Number that identifies with your business.
  • The following two letters, ‘RP,’ are program identifiers.
  • The next four digits identify CRA Program Account.

You must show your GST/HST number in all your contracts. You will deal with your business matters like paying taxes, reporting business, using your payroll deduction account under this same business number.

Registration for GTS/HST Account:

5. Registration for GST/HST Account: When?

Here’s a guide on registration of GST/HST account:

  • If your business is earning more than $30,000 in a single calendar quarter, you must register for GST/HST account. You should apply when your business exceeds $30,000 on the supplies.
  • Your business exceeds $30,000 over the previous four consecutive calendar quarters. You must register GST/HST at the beginning of the month after you are no longer a small supplier.

6. Registration for GST/HST Account: How?

Following are the ways for the registration of GST/HST account: 

You can contact Canada Revenue Agency in three ways:

  1. By online
  2. By mail
  3. By phone

1. By online:

It’s better to apply for GST/HST account online by going to Business Registration Online (BRO). The process is easy, and you can also register to corporate, payroll, and other taxes at this site.

2. By mail:

You can download a form from the CRA website, fill it out, and mail it in.

3. By phone:

You can call the CRA at 1.800.959.5525 and register your GST/HST account.

7. How to Start Charging GST/HST?

Once your GST/HST account is made, you can now charge GST/HST on goods and services you are selling. The tax rate depends on the province you are doing business in. after collecting GST/HST from customers, you must return GST/HST to CRA, and if you fail to do so, the CRA will take action against you.

“If people like you, they will listen to you, but if they trust you, they will do business with you.” -Zig Ziglar.

Registration for GTS/HST Account:

Bottom line:

Whether you have been in business for years or just starting it, tax regulations can be intimidating to understand the GST/HST process. Understanding how it affects your business can be daunting but don’t worry, Yogi & Associates are here for you to teach the ins and outs of numerous tax regulations. So feel free to give a call to our company in Mississauga as our team’s priority is to look up what you need and when you need it!