Simple Rules and Policies about GST for New Business Owner

PART A - GST Registration Rules

1. A business that has sale over $30,000 must register GST within 30 days since its sale pass $30,000.

2. A company can choose a fiscal year-end when register GST#. If fail to choose, can be changed, but must finish the current period GST filing.

3. How to Register for GST

   1. Online through CRA Business Registration Online system

   2. Mail with Form CRA

   3. By telephone 1-800-959-5525

Effective registration date will only go back to 30 days, must start collect GST on effective registration date and claim ITC.

CRA will assign a reporting period after GST# is registered

• Annual reporting: both filing and payment due 3 months after fiscal year-end

• Quarterly Reporting: both filing and payment due 1 month after each quarter

• Monthly Reporting: both filing and payment due 1 month after each month3.

Individual who has GST#, should pay an installment by April 30th, and file return by June 15th

How to file GST Return: GST/HST Netfile Service

PART B - GST Policies

• GST is due on the date invoice is issued to client

• GST is collected at the earliest of date payment made by the client

• Indigenous People and foreigners don't pay GST

• All level of governments don't pay GST

• Food and Doctor prescriptions drugs, dental treatment has GST, but that is 0%

• Some supplies are GST exempt, such as daycare services, residential leasing

• A individual or company didn't register GST should not collect GST from their sales

• You are personally liable to CRA for any GST debt even if you operate your business via a company or the company has been closed.

• Must keep all invoices issued and expense receipts paid for 7 years after the taxation year