If you bill more than $30,000 per annum you are required to register for GST/HST.
Start collecting GST/HST
In the month following the quarter when a business exceeds $30,000 in sales, it must start collecting GST/HST.
Unfiled GST/HST returns
If you or your small Canadian business has unfiled GST or unfiled HST returns then provided that CRA has not contacted you about the unfiled returns you should be eligible for the Voluntary Disclosure Program and not be subject to prosecution or penalties. One of our professional Canadian tax lawyers at our Toronto tax law firm can advise you if you qualify to be a part of the Voluntary Disclosure Program.
If you have filed your GST/HST returns but have not paid the taxes owing our top Ontario tax lawyers can assist you in making payment arrangements with CRA before CRA seizes your accounts receivable or bank accounts.
FAQ’s Unfiled GST/HST Returns
My business is selling products outside Canada — do I have to charge GST/HST?
When the buyers of your products or services aren’t residents in Canada, you don’t charge them GST/HST on any taxable goods that they’re purchasing. These goods become zero-rated if you’re exporting them out of Canada. You don’t collect GST/HST, nor do you need to pay this over to the government.
Why is it important to put my GST/HST number on my invoice?
Including your GST/HST number on an invoice is a requirement of the CRA. It reassures your customers that you comply with GST/HST regulations and will pay the government accordingly. If you don’t include your GST/HST number on your invoice, you can’t charge the customer GST or HST.
I run several businesses, but not one of them exceed $30,000 in sales per annum — do I have to register for GST/HST?
To determine if you need to register for GST/HST, you must look at your income from all your businesses. If the combined income exceeds the $30,000 limit for a single calendar quarter or any four consecutive calendar quarters, then you must register for GST/HST. It’s important to note that a calendar quarter is a three-month-long period, beginning on either the first of January, April, July, or October.