If you’re starting a business in Canada or expanding an existing one, you may need to register for a Goods and Services Tax (GST) or Harmonized Sales Tax (HST) number. This article will guide you through the process of obtaining a GST/HST number, ensuring your business complies with Canadian tax regulations.
Table of Contents
Why You Need a GST/HST Number
In Canada, businesses must collect GST/HST on taxable supplies if their annual taxable revenues exceed $30,000. A GST/HST number allows you to charge this tax, file returns, and claim input tax credits for the GST/HST you pay on business expenses. Registering for a GST/HST number is essential for businesses that meet the revenue threshold or wish to benefit from input tax credits.
Steps to Obtain a GST/HST Number
1. Determine Eligibility
Before applying for a GST/HST number, confirm that your business needs to register. You are required to register if your taxable revenues exceed $30,000 in the past four consecutive calendar quarters or if you want to reclaim GST/HST paid on business expenses.
2. Gather Required Information
Prepare the following details before starting the registration process:
- Business Number (BN): If you don’t have one, you’ll need to apply for it as part of the GST/HST registration.
- Legal Business Name: The official name under which your business operates.
- Business Address: Your physical business location.
- Nature of Business: A description of the products or services you offer.
3. Register Online
The most convenient method to register for a GST/HST number is online:
- Visit the Canada Revenue Agency (CRA) website.
- Access the CRA’s online business registration service.
- Follow the instructions to apply for a GST/HST number.
4. Register by Mail
If you prefer a paper application:
- Complete Form RC1, “Request for a Business Number.”
- Download the form from the CRA website or request a copy from a CRA office.
- Mail the completed form to your local tax services office.
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GST/HST Credit Payment Dates 2023-2024: Netfile, Cheques and Paper Returns
GST/HST Payment Dates 2024: Eligibility Criteria & Payment Amounts Explained
5. Register by Phone
For personalized assistance:
- Call the CRA’s business inquiries line at 1-800-959-5525.
- A representative will guide you through the registration process and provide the necessary forms.
6. Receive Your GST/HST Number
After you submit your application, you will receive a GST/HST number as part of your Business Number (BN). This number is essential for invoicing, filing tax returns, and claiming input tax credits.
Maintaining Compliance
Once you have your GST/HST number, ensure that you comply with all reporting requirements. This includes:
- Charging the correct GST/HST rate on taxable supplies.
- Filing regular GST/HST returns.
- Keeping accurate records of your business transactions.
By following these steps, you can successfully obtain a GST/HST number and ensure that your business remains compliant with Canadian tax regulations.
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