As a business owner in Canada, when you reach $30,000 in gross revenue in your last four quarters, you have to register for the Goods and Services Tax (GST) / Harmonized Sales Tax (HST) and in some cases the Provincial Sales Tax (PST – QST in Quebec).
Registration for GST only
For Alberta, Nunavut, Northwest Territories and Yukon.
Registration for GST/HST
For Ontario, Prince Edward Island, New Brunswick, Nova Scotia and Newfoundland and Labrador.
Registration for GST/HST and PST
For British Columbia, Manitoba, Saskatchewan, Quebec
During the registration process, you will have to choose between the regular method and the quick method and will also have to choose a reporting period.
Regular method – bookkeeping is done by compiling your revenues and expenses, taxes separately.
Quick method – bookkeeping is done by compiling your revenues and expenses, taxes included (not everyone can use this method).
Reporting period – annually or quarterly
Once you registered you are responsible for collecting the appropriate taxes from your clients.
We have created a very easy course that covers everything you need to know about the sales taxes.
Once you have completed the course, you will:
- Know if you need to register for the GST/HST or PST;
- Know and when and how to register;
- Know how to charge the tax;
- Know what to do with the taxes collected;
- Know how much to return to the government and when.