Register for GST/HST Account: When and How? A Complete 2024 Guide

by | Jun 9, 2022

Having your own business in Mississauga is promising, such as achieving your goals, being your boss, and so on. But, it comes with many duties. One of them is managing your GST/HST account. So, we are all aware that it is critical to register for GST/HST.

Furthermore, keeping track of your bookkeeping records is significant in running a business. This way, you’ll know exactly how much tax you must collect/charge. So, if you believe it is challenging to manage your books, you can also use our bookkeeping services.

We understand it is to manage your taxes to keep your business running. So, if you need help managing your taxes or bookkeeping financial matters, please contact Yogi & Associates!

1. What is a Small Supplier?

A small supplier has annual taxable sales of less than $30,000 or $50,000 for public service bodies. Some examples are colleges, hospitals or organizations, etc.

2. How Does a Small Supplier Work?

Suppose a person owns a toy shop in Mississauga, and these are his taxable earnings shown in the table below:

Quarterly Ending June 30th $8,000
Quarterly Ending September 30th $5,000
Quarterly Ending September 31st $6,000
Quarterly Ending March 31st $10,000
Total $29,000

This person collects $29,000 in earnings for all four consecutive quarters. This means he doesn’t have to register for GST and HST. If he makes more than $30,000, then the tiny supplier exemption ends, which means:

  • GST/HST must be collected.
  • The business must register for GST/HST account within 30 days.

3. Advantages of Register for GST/HST Account:

  • You can claim Input Tax Credits for all your business purchases.
  • You will get more clients to do business with as most of them do business only with registered companies.
  • You can also refund the taxes you paid on supplies or purchases you made for your business.

If you want to learn about Input Tax Credit (ITCs), you can see our article by clicking here: Input Tax Credits

4. Registration for GST/HST Account:

A GST/HST number is a part of your Business Number (BN). For example:

                                                  123456789 RP 0002

  • The first nine digits are your Business Number that identifies with your business.
  • The following two letters, ‘RP,’ are program identifiers.
  • The next four digits identify CRA Program Account.

Additional Information:

You must show your GST/HST number in all your contracts. You will deal with your business matters like paying taxes, reporting business, and using your payroll deduction account under this same business number.

5. When to Register for GST/HST Account?

Here’s a guide to registering your account:

  • You must register your account if your business earns more than $30,000 in a single calendar quarter. You should apply when your business exceeds $30,000 on the supplies.
  • Your business exceeds $30,000 over the previous four consecutive calendar quarters. You must register at the beginning of the month after you are no longer a small supplier.

6. How to Register for GST/HST Account?

Following are the ways to register your account:

1. By online.
2. By mail.
3. By phone.

By Online:

Applying online by going to Business Registration Online (BRO) is better. The process is easy, and you can also register for corporate, payroll, and other taxes at this site.

By Mail:

You can download a form from the Canada Revenue Agency website, fill it out, and mail it in.

By Phone:

You can call the CRA at 1.800.959.5525 and register your account.

7. Requirements to Register for GST/HST:

Your GST/HST business needs to be registered with the CRA. You must include the following:

1. Your last name.
2. The SIN of the person or entity that owns or manages your company.
3. Your birth date.
4. The title of your business.
5. Your business type (e.g., corporation and sole proprietor).
6. The place where your company is located.
7. A unique postal code for identification.
8. Company Number.
9. Postal Address.
10. A description of the central business activities.

8. How to Start Charging GST/HST?

Once your account is made, you can charge GST/HST on goods and services you sell. The tax rate depends on the province you are doing business in. After collecting taxes from customers, you must return them to CRA. If you fail to do so, the CRA will take action against you.

9. Improve your Bookkeeping Records:

Improving your bookkeeping records is an essential factor in running a successful business. You can manage your finances if your books are up to date. For example, you can calculate your GST/HST and the amount you must charge or collect. 

As a result, keep accurate bookkeeping records at all times. It will make your financial situation more manageable. Still, you can visit us anytime if you have too much on your plate and cannot manage your bookkeeping matters. We are here to provide you with our bookkeeping services!

Bottom line:

Whether you’ve been in business for years or getting started, GST/HST process can be challenging. Understanding how it affects your business can be complex. But don’t worry, Yogi & Associates is here to teach you the ins and outs of many tax regulations. So, feel free to contact our Mississauga office, as our team’s top priority is to find what you need when you need it!


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