When Do You Need to Register for the Harmonized Sales Tax (HST)?

What is the HST?

The harmonized sales tax (HST) is a tax that businesses are required to charge on their sales.. In turn, businesses must remit all HST monies collected to the Canada Revenue Agency.

However, If you’re a new business or small supplier, you may not have to register for the HST. But as your business expands, this requirement can change.

Am I Required to Register My Business?

Whether you are required to collect HST depends on your level of revenue. If you exceed the amount stipulated by CRA, you have to register if you’re a:

• Consultant
• Contractor
• Entrepreneur or partnership
• Sole proprietor
• Small business owner of a limited company

The HST policies have exemptions and specific applications. The experts at TaxAssist Accountants will help you stay abreast of your obligations, such as completing the application. Consult these professionals for invaluable guidance. They will even interact with the CRA on your behalf.

Who Else Needs to Register?

Canada’s Excise Tax Act clarifies who’s required to register for HST. The Act highlights how and when you apply as well. Some general rules for registering, with a few exceptions, include those who:

• Make taxable transactions and aren’t a small supplier;
• Have a taxi business;
• Are a supplier of a prescribed property and using this address to conduct business;
• Enter Canada to be a supplier of admissions to an event or activity.

Fortunately, the specialists at TaxAssist Accountants know all the rules and exceptions. Their attention to detail helps you avoid penalties or interest you may accrue otherwise. Don’t throw money away because of errors, time constraints or lack of knowledge.

When Do I Register?

If you qualify, you have to register for the HST before the thirtieth day of the month that you make your first taxable transaction. This timetable may not be applicable in certain situations, such as:

• If you’re considered a small supplier;
• If your interactions make sales of real property in ways unrelated to business;
• You’re not a resident or business operator in Canada.

There are other obligations to fulfill as your business evolves or changes. So to sleep soundly without worry, hire an accounting firm that’s familiar with these specifications.

The Benefits of Hiring TaxAssist Accountants for Your HST Returns

Running your business takes time and attention. TaxAssist Accountants can prepare required forms of your HST return. Our staff can also help you with your record-keeping.

They work to find any HST allowances you’re eligible for that may lower your tax burden. You then have time to concentrate on managing your business. Contact TaxAssist Accountants today to help you register for the HST.

Date published Feb 13, 2022

This article contains general information only and should not be relied upon for accuracy or completeness. You should seek appropriate tax or accounting advice from a qualified accountant before you take, or refrain from taking, any steps based upon this article. This article should not be construed as tax, accounting or other professional advice and QX Franchise Limited (Master Franchisee for TaxAssist in Canada) disclaims liability for any loss, howsoever caused, arising directly or indirectly from reliance on the information in this article.