GST/HST Account: Who Qualifies and What You Get
Learn if your business needs a GST/HST account to collect sales tax and how to manage your reporting obligations.
A GST/HST account allows your business to collect sales tax from customers and send those funds to the government.
Who it's for
You are required to have this account if your business earns more than $30,000 in annual revenue.
What you get
Registering gives you the legal authority to collect sales tax on your goods or services. It also allows you to claim input tax credits, which let you recover the tax you paid on your own business expenses.
What it costs you
While there is no fee to register, it requires a commitment of your time. You will need to file regular reports and make remittances, which is the process of sending the tax you collected to the government. Depending on your business, these reports are usually due on a quarterly or annual basis.
The catch to know
You must register for an account even if you have not started collecting tax from your customers yet, provided you meet the revenue threshold.
How to apply
- Determine if your annual revenue exceeds the required threshold.
- Gather your business identification and financial details.
- Follow the registration process on the official government website.
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses.html