September 24, 2018

GST and HST basics – how to do right by the CRA and your business

Entrepreneurs and small business eventually grow to a level where they need to start charging a Goods and Service Tax (GST) and/or a Harmonized Sales Tax (HST). Some companies put off charging these taxes until their company reaches the threshold of $30,000 sales over the last four consecutive quarters. One reason a company may not sign up immediate is because some customers cannot claim the tax back. Taxes cannot be collected at a later date, so companies making over the minimum need to register with the CRA and start applying the tax according to the CRA’s guidelines.

Key Takeaways:

  • Proper collection of the GST and HST depends on such factors as the customer’s location, and the business’s annual revenue.
  • A business has to decide not only which tax to collect, but when to start collecting and how often to file.
  • Business owners who aren’t sure of their GST/HST responsibilities should call their accountant or the CRA.

“The CRA will wait for your return, but they don’t want to wait for your money.”

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