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Does Your Business Need to Register for GST/HST and/or PST?

Everyone in Canada who sell goods and services in Canada must charge customers GST/HST unless your business qualifies as an exception ( either you sell zero-rated goods/services or you exempt services/goods) . The best place to check to see if your business falls into one of these exceptions is to go to http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/gnrl/txbl/menu-eng.html  The CRA site adequately explains which activities qualify. The list isn’t long so, for most business and service providers, you will probably have to collect and remit GST. However, there is one other exception:  the “small supplier”

Generally speaking, if you have gross revenues (before expenses) of less than $ 30,000 per year, you qualify as a small supplier and do not need to charge your customers GST/HST. Yay!  However, you also do not get to claim back any input-tax credits on GST/HST that you pay out (boo!) which means that your costs are higher compared to a similar business that is GST registered.

If you are unsure as to whether you qualify as a small supplier, or whether you need to (or should) register for the GST/HST, the you should contact someone that can review your situation and give you the low-down.

As for the PST….you have no choice if the goods or services that you sell are not PST exempt. There is no small supplier limit. BC is current reverting back to the PST so many businesses are scrambling to revise their pricing, change their point-of-sale and accounting systems, get ready to enter the confusing realm of the BC PST.  For a list of what the impact of changing over will be, follow this link http://www.pstinbc.ca/media/2013_GST_PST_List_WEB.pdf.pdf

And, as always, if you need some help, we are just a phone call away!

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