How to Register for HST/GST Number

Registering for a GST/HST number feels like the initial step for becoming a successful entrepreneur.

Jan. 23, 2022

Almost every business in Canada requires an HST (Harmonized Sales Tax) number to identify their company. The registration process saves you from paying interest and penalties. Once a business gets its HST/GST number, the business owner must go for the collection and calculation of HST on all its supplies purchases. But before taking a deep dive, you must know specific terms like GST/HST and HST/GST number. The following blog will assist you with the registration process for HST/GST number. 

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“Try not to become a man of success, but rather try to become a man of value.” -Albert Einstein

What is the GST/HST number?

It is a unique tax identification number assigned by the Canada Revenue Agency (CRA) that helps throughout your business proceedings. It is pretty similar to the business number (BN). 

A business company needs GST/HST numbers for collecting and reporting GST (Goods and Services Tax) and HST (Harmonized Sales Tax). However, the essential food items and some real estate services do not come in the GST/HST tax. 

The HST/GST registration process

You need to register for GST/HST if your company has taxable sales or supplies of goods and services within Canada. Once you get registered, you can charge GST/HST for most of your services. You can do the registration of GST/HST through various methods such as:

Online

You can register your GST/HST number online through Business Registration Online (BRO). There are many advantages of doing registration online. You can also register for other CRA program accounts such as import-export, payroll deductions, corporation income tax, etc. Once done with GST/HST registration, you can go for other registrations that you desire. 

By mail or fax

Another way to register your GST/HST number is by mail or fax. In this procedure, you have to fill out an RC1 form that you can quickly get online from Forms and Publications. The RC1 record stands for ‘Request for a Business Number and Certain Program Accounts.’ Please fill up the form and mail it or send it by fax to any nearby tax services offices. 

By telephone

You can get registered for many CRA programs by telephone. Just call on the Business inquiries line. You should be aware of all the information about the RC1 form because you may get asked several questions about this form and other CRA program accounts that you want to open.

The need to register for GST/HST number

Most of the businesses in Canada require a GST/HST number. The HST registration number is essential for all the sole proprietors and corporations whose total taxable revenues exceed $30,000 in 12 months. When your business has crossed $30,000, you must register within 29 days. CRA will not stop you from business proceedings if you still do not register. Instead, it will access your bills. And you will lose 13% of your sales and pay for the penalties. Therefore, people prefer to do business with companies registered for the GST/HST.

Final Words!

While starting a new business, it is better to register for GST/HST number. It helps you claim the GST/HST on the products you purchase for business setup. If you do not fit as a small business supplier and provide taxable goods and services, you need to charge, gather and remit the GST/HST. However, some businesses cannot claim as a small supplier, just like a taxi operator who must have to register for GST/HST no matter how small the annual income is. 

Laila Batool

Executive Journalist

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