How to Get a GST Number in Canada – Everything You need to Know about GST Registration
Since GST is a form of tax, we must now pay GST/HST on every purchase. The Goods and Services Tax (GST) registration process is mandatory. Through the Canada Revenue Agency’s (CRA) official website, you can register it online. You must fill out Canada GST Registration 2023 for this, and you can do so online. The applicant must fill out the form with accurate information. In order to register for Canada GST in 2023, you will also need to supply a few papers.
The national taxing body, the CRA, states that every Canadian business with gross revenues above CAD 30,000 must obtain a GST number. One of the largest changes to the indirect tax system, the GST was implemented to spur economic growth in Canada. The products and Services Tax, or GST, is a tax system in which the provision of products and services is subject to a single tax. One of the largest changes to the indirect tax structure is the GST/HST. I’ll now walk you through the steps for both GST registration and how to obtain a GST number in Canada.
What is Canadian GST/HST?
A goods and services tax number is a special tax identification number that firms can obtain from the Canada Revenue Agency (CRA). It is also known as a business number (BN) because, in addition to being used to collect, report, and remit GST and harmonized sales tax (HST), it also acts as a unique identification for any future business transactions your organization has with the CRA. You must open a GST/HST account if you make taxable sales of supplies, leases, or other items utilized in the course of your business that are used in Canada and are related to operating your business.
GST/HST- Mandatory vs. Exempt Business Requirements
Most businesses in Canada are required to have a GST number. All businesses in Canada are required to register for GST/HST, with the exception of small suppliers, who are exempt from registration requirements and do not need to apply for a GST/HST number. One is no longer regarded as a small supplier whenever their total overseas sales surpass CAD 30,000 during a four-quarter period. Similar rules apply to charities and public concerns, with a CAD 250,000 minimum barrier.
How to Register GST/HST Account in Canada?
Obtaining a GST or HST number is simple in Canada, and if you have enrolled in the CRA’s online My Business service, you can finish the process over the phone or online. Regardless of how you register, CRA will require you to give certain information and make decisions in advance.
Form RC1 can be printed and mailed to the closest tax service office or tax center. In Canada, you can also obtain a GST number by giving them a call at 1-800-959-5525. In order to register a GST/HST account in Canada, you need to bring the following items.
Information about you personally, including your SIN, complete name, birthdate, and postal code
Name, number, and description of the business
both a personal and email address
Amounts of supplies subject to GST
End of the fiscal year
Reporting timeframe and Revenue
Charging GST in Canada and Rate
As a registered GST/HST registrant, it is your duty to charge GST/HST on your taxable goods and services. The rate you charge will depend on the province or region in which the provision is made. As of right now, the rates are:
5% (GST/HST) in the Northwest Territories, Alberta, British Columbia, Manitoba, Nunavut, Saskatchewan, and Yukon
GST/HST in Ontario is 13%.
15% (GST/HST) in Prince Edward Island, Nova Scotia, New Brunswick, and Newfoundland and Labrador
Process to Collect GST/HST in in Canada
Once your GST/HST registration is complete and you have your GST number, you charge your clients GST/HST on the taxable goods and services you supply them. You may charge and collect simply Goods and Services Tax, or GST and HST, depending on the province in which your business is located, the kind of goods or services you provide, and the destination of the goods, if they are being exported.
GST/HST Account- Benefits
As you are aware, the GST is a comprehensive indirect tax that was created to unify indirect taxation. The first benefit of the GST was the elimination of the cascading effect from Canada. The prior tax’s cascading impact was eliminated with the implementation of the GST.
Online registration and return submission have been the norm for the GST program. This has greatly simplified and eased tax compliance. In contrast to the previous tax system, which required most operations to be completed in person, the GST system enables taxpayers to complete the same tasks online. Additionally, taxpayers can now finish these procedures with a variety of software programs that have been made available.
Only value addition at each level is subject to the indirect tax known as GST/HST, which has united Canada into a single common market. There are numerous advantages to the Goods and Services Tax (GST) adoption. Since its inception, Canadian taxpayers have experienced both the benefits and drawbacks of GST.