The HST number is the official number you need before calculating HST tax as a self-employed or small business owner. You can get your HST number from the Canada Revenue Agency (CRA).
You may be confused and have many unanswered questions, such as what an HST number is and how to obtain one in Canada. Therefore, our GST/HST and corporate tax services are available in Mississauga if you need assistance with your company taxes.
1. What Is HST Tax?
The harmonized sales tax (HST) in Canada is a consumption tax. Usually, the residents and local businesses pay HST tax. It “harmonizes” (combines) various provincial sales taxes with the federal goods and services tax imposed on the entire country. Five Canadian provinces use HST tax:
| Provinces | HST Tax |
| 1. Newfoundland/Labrador | 15% |
| 2. New Brunswick | 15% |
| 3. Nova Scotia | 15% |
| 4. Ontario | 13% |
| 5. Prince Edward Island | 15% |
2. What Is HST Number?
Before beginning to charge HST as a freelancer, self-employed person, or small business owner, you must obtain an HST (Harmonized Sales Tax) number. Even though you are eligible to charge HST, you cannot start doing so until you have officially obtained your HST number.
3. Can Anyone Get An HST Number?
A GST/HST account must be opened by sole proprietors, independent contractors, consultants, small business owners, and entrepreneurs with gross sales or revenues of $30,000 or more in a single quarter or over four quarters (a calendar year).
However, a small supplier doesn’t need to register an HST number. A small supplier can be a sole proprietorship, partnership, or corporation. Its total taxable revenues before expenses are $30,000. Or less annually.
Tip 💡
Even if you qualify as an HST small supplier, you may still want to register for the HST number in Canada. It allows reclaiming the HST you’ve paid on business purchases. For instance, capital property, office supplies, and GST/HST input tax credits.
4. How To Register For HST Number In Canada?
Usually, you have to contact the CRA to get an HST number. Moreover, you can use one of the following methods:
Online process
You can get your GST number in Canada online through Business Registration Online. BRO online registration has many advantages. You can apply for other CRA program accounts. Including corporate income tax, payroll, and import and export taxes.
“Almost every business in Canada needs an HST number.”
By mail
Another way to get your HST number in Canada is by sending mail to the CRA.
By phone
You can call CRA at 1-800-959-8281 to get your HST number in Canada.
Fast Fact!
British Columbia (BC) introduced the HST in 2010, but decided to do away with it three years later. Following an estimated 55% of citizens of the province voted against the system, the province restored its provincial sales tax system.
Once the registration task for your HST number is done, you can gather and remit the GST/HST. For this, check our article, When Do You Charge GST/HST: 2022 Free Guide.
5. When Should You Apply For HST Number in Canada?
It is best to apply for an HST number before you start your business. This way, you can claim the GST/HST on the items you purchase for your startup expenses. If your company exceeds the small supplier threshold ($30,000), you must apply for HST account. You need to register for HST account within 29 days.
In addition, some businesses must have an HST number in Canada, even if they are small suppliers. Such as people who operate taxis and limousines for non-resident entertainers. (who sell tickets for seminars and other events).
6. Need Help With Your GST/HST Taxes?
Examine your current business situation. When it comes to organizing your HST taxes, do you really do it well? Is maintaining your tax information taking too much of your time?
It’s a huge step to provide anyone access to your company’s financial information. Do thorough research before hiring an HST administrator. Also, keep in mind that Yogi & Associates can assist.
The Bottom Line!
In short, the HST number in Canada is the most basic and necessary form of business in Mississauga. This is especially important if you have a company. In addition, you need a Canadian HST number to deduct wages.
We hope you have all the information you need to get an HST number in Canada. We are here to help you. So, feel free to contact Yogi & Associates. Moreover, you can get our corporate tax services in Mississauga, Brampton, and surrounding areas.
