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Sales Taxes ->GST/HST -> Who must register to collect GST or HST?

GST/HST Registration - Who has to register to collect GST/HST?

Mandatory registrations

All businesses which provide taxable goods and services (including zero-rated supplies) in Canada must register to collect GST or HST, unless they are a small supplier.  This includes non-residents who are carrying on business in Canada.  However, there are situations where even a small supplier must register to collect GST or HST.  See our article on small suppliers.

Voluntary registrations

Businesses which sell GST taxable goods and services, and are "small suppliers" may voluntarily register to collect GST/HST.  In so doing, they will then be able to recover GST/HST that they have paid on their purchases.  New registrants may be also able to recover the GST/HST already paid on capital property and inventory that is on hand at the time of registration.  Search for new registrants the pdf version of CRA guide RC4022 General Information for GST/HST Registrants.

Registration not allowed

Business which sell only exempt goods and services may not register to collect GST, and thus may not claim any input tax credits for GST that they have paid.

Simplified method of accounting for GST/HST

Many businesses are eligible to recover their input tax credits by using the Simplified Method, which does not require separate record-keeping for GST/HST paid.  See the Canada Revenue Agency (CRA) information on the Simplified Method.

Invoicing requirements

When both GST and provincial sales tax are applicable to a sale, the amounts of each should be shown separately on the cash register tape or invoice.  For information on whether provincial sales taxes of another province must be charged by a vendor, see the article on the PST page re charging another province's PST.

The GST/HST account number (business number, registration number) must be included on receipts, invoices, contracts, or other business documents used when taxable goods or services of $30 or more are supplied by a GST/HST registrant.  For more detailed invoicing requirements for GST/HST registrants, see the CRA topic Collecting the GST/HST in the pdf version of CRA guide RC4022 General Information for GST/HST Registrants.

Sales to locations in other provinces

All vendors who are registered to collect GST are automatically registered to collect HST.  A GST registrant in a non-HST province who sells goods which are delivered to an HST province must collect the HST applicable for that province.  A registrant in an HST province who sells goods which are delivered to a non-HST province would collect GST, not HST.  For more information, see our article on Place of Supply Rules, which addresses sales of goods, services, and intangible personal property (IPP).

Note:  Associate, for GST/HST purposes, is used to describe a relationship where one person controls another.  A corporation is considered a person, as is a partnership or trust.  For example, an association may exist between two or more corporations, between an individual and one or more corporations, between an individual and a partnership or trust, or between a partnership and a corporation.  A person is associated with another person if each of them is associated with the same third person.

See also

How to register to collect GST/HST

Sales Tax Rates in Canadian Provinces and Territories

Canada Revenue Agency resources

Registering (opening) your GST/HST account - If you are not sure if you have to register to collect GST/HST

How to register a non-resident business

RC4027 - Doing Business in Canada - GST/HST Information for Non-Residents.

RC4022 - General Information for GST/HST Registrants - This guide also has a section on cancelling your GST registration.

Reporting Periods - Your annual sales determine how often you must file your GST/HST returns.

 

Revised: September 18, 2012

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