If you are starting a business or have an existing business and need to register for GST/HST, you are just minutes away from exactly what you need!
Most businesses in Canada have to register for GST/HST number. For some businesses registration is mandatory, while other businesses can register voluntarily. This can be complicated, but don't worry, we make it easy!
Learn about GST/HST Number
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Step 1 - What is the GST/HST Number
Most persons and organizations engaged in commercial activities in Canada who have worldwide, taxable sales of more than $30,000 over any four or fewer consecutive calendar quarters must register for and collect the Goods and Services Tax (GST) or Harmonized Sales Tax (HST). All taxi and limousine operators must register for GST/HST, regardless of their revenues.
What is the Federal Business Number (BN)?
The BN is issued by the Canada Revenue Agency (CRA) and is used to unify all accounts a business may have with the federal government. The BN is used to operate corporate income tax, import/export accounts, payroll deductions and GST/HST among others.
When should I apply for the Federal Business Number (BN)?
Registration should take place after the company has been registered. We can assist you with both, the business registration and the GST/HST
registration at the same time.
General Information about GST/HST
The GST/HST applies to most transactions from manufacturing to marketing and sales. Businesses and organizations registered for the GST/HST are referred to as registrants. In general, each provice has a specific rate for GST or HST. The rate from 5% to 15% applies to most goods and services. The GST/HST is not charged on the following items:
- Basic groceries
- Prescription drugs
- Some medical devices
- Municipal public transit
- Health and education services
- Legal aid
- Most financial services
- Child care
- Music lessons
- Residential rents
Businesses do not collect the provincial portion (eight per cent) of the HST for:
- Qualified prepared food and beverages sold for a total of $4 and under
- Print newspapers
- Children's clothing and footwear
- Children's car seats and car booster seats
- Feminine hygiene products
- Books (including audio books)
GST/HST registrants who provide taxable goods or services have to charge and collect the GST/HST on their sales. If the GST/HST collected is greater than the GST/HST paid or payable, the difference is sent to the CRA. If the GST/HST collected is less than the GST/HST paid or payable, a refund can be claimed.