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

Who has to register to collect GST/HST?

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 below.  A small supplier is a supplier whose worldwide annual GST/HST taxable supplies (including zero-rated supplies), including the supplies (sales) of all associates (see below), are less than $30,000, or less than $50,000 for public service bodies (colleges, non-profit organizations, charities, hospitals).  However, the calculation of annual revenue is not just done on a calendar year basis.  At the end of each calendar quarter, total gross revenues for the past 4 consecutive quarters (i.e., for the past 12 months) should be totalled.  If this total exceeds $30,000, the business must register to start collecting GST.

A small supplier must register to collect GST or HST if they carry on a taxi business, according to s. 240(1.1) of the Excise Tax Act of Canada.  Also, according to s. 240 (2), any person "who enters Canada for the purpose of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity or an event is required to be registered" to collect GST.  

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.

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.

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.