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HST, Taxes

HST

When to register for and start charging the GST/HST

 

The harmonized sales tax (HST) is a consumption tax in Canada. It is used in provinces where both the federal goods and services tax (GST) and the regional provincial sales tax (PST) have been combined into a single value added sales tax.



Small supplier limit calculation for most businesses

IF


 You do not exceed the $30,000 threshold over 4 consecutive calendar quarters. 


THEN

 

You do not have to register. You may choose to register voluntarily if you make taxable sales, leases,or other supplies in Canada.  Your effective date of registration is usually the day you request your GST/HST account (or up to 30 days before that day).


IF


 You exceed the $30,000 threshold in a single calendar quarter. 


THEN

 

You must register for the GST/HST. 

Your effective date of registration is no later than the day of the supply that made you exceed $30,000.

You have to start charging GST/HST on the supply that made you exceed $30,000.


IF

 You exceed the $30,000 threshold over the previous 4 (or fewer) consecutive calendar quarters (but not in a single calendar quarter). 


THEN

 

You have to register for the GST/HST.

Your effective date of registration is no later than the beginning of the month after you are no longer a small supplier.

You have to start charging GST/HST on your taxable supplies starting on your effective date of registration.



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Example 1

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Example 2

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Example 3

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example 4

Additional Information

Contact Canada Revenue Agency at 1-800-959-5525


 https://www.canada.ca/en/revenue-agency.html 

Downloads

Download our HST calculator in order to assist you with your HST calculations.