GST HST Preparation and Filing in Perth Ontario Canada

If you are a newly self-employed Canadian, or if you are thinking about starting your own business or making extra money through a side, you may be wondering about the tax regulations and repercussions that will apply to your case. In addition to providing additional information on your tax return, you may be required to open a GST/HST account and register as a GST/HST Registrant. This means that, depending on your business model, you’ll be required to collect and remit sales tax to the Canada Revenue Agency on a quarterly or annual basis.

The Goods and Services Tax (GST) is a 5% tax levied on the majority of taxable items and services in all provinces and territories across Canada, with the exception of provinces and territories where an agreement has been reached to collect GST in conjunction with Provincial Sales Taxes (such as Quebec) (PST). In that case, the Goods and Services Tax and Provincial Sales Tax are repealed and replaced by a Harmonized Sales Tax (HST). Provinces and territories that have been recognized as “participating”

In Alberta, for example, a $1.00 bag of pretzels will cost you $1.05 at the checkout because the province does not levy any provincial sales taxes. In Ontario, for example, where there is a Harmonized Sales Tax (HST), a $1.00 bag of pretzels would cost $1.13, because the HST is currently 13 percent.

Even if you are not compelled to register for the GST/HST, there are a few circumstances in which enrolling voluntarily makes sense. One rationale for starting early is to have a head start on effective record-keeping. Another reason to apply is if you anticipate your business will quickly fulfill the Small Supplier requirement of $30,000 in sales rather than profit.

If you manufacture or sell zero-rated supplies, voluntarily registering for the Goods and Services Tax (GST) or the Harmonized Sales Tax (HST) is a good idea. Although GST/HST is not required on sales, ITCs can be claimed. Furthermore, if you have to invest a significant amount of money to get your firm up and running, voluntarily registering may result in a refund of GST/HST paid through ITCs on the first several returns, which can be used to accelerate the business’s growth.

If you are required to register for your self-employment firm, understanding the nuances of the GST/HST registration process may help you avoid fines and interest.

Most property and services supplied in or imported into Canada are subject to the GST/HST.

Taxable supplies (other than zero-rated)

The following are examples of taxable, other than zero-rated, supplies.

• sales and rentals of commercial real property;
• sales and leases of automobiles;
• car repairs;
• taxi or commercial ride-sharing services;
• legal and accounting services;
• publications such as books, magazines, and periodicals;
• rights to operate franchises;
• hotel accommodation; and
• barber and hairstylist services.

Barrie, Belleville, Brampton, Brant, Brantford, Brockville, Burlington, Cambridge, Clarence-Rockland, Cornwall, Dryden, Elliot Lake, Greater Sudbury, Guelph, Haldimand County, Hamilton, Kawartha Lakes, Kenora, Kingston, Kitchener, London, Markham, Mississauga, Niagara Falls, Norfolk County, North Bay, Orillia, Perth, Oshawa, Ottawa, Owen Sound, Pembroke, Peterborough, Pickering, Port Colborne, Prince Edward County, Quinte West, Richmond Hill, Sarnia, Sault Ste. Marie, St. Catharines, St. Thomas, Stratford, Temiskaming Shores, Thorold, Thunder Bay, Timmins, Toronto, Vaughan, Waterloo, Welland, Windsor, Woodstock. Get your GST done correctly the first time. GST Audits, GST Filing Help, keeping up-to-date GST amounts easy for regular access and for filing at tax time. What is GST? GST (Goods and Services Tax) is a federal tax.