Your GST/HST account represents a vital tool to communicate with the Canada Revenue Agency when your business deals with taxable sales and you’re not a small supplier. However, there may come a time in the future when you opt to close your GST/HST account.
Reasons to Close Your GST/HST Account
You have several good reasons to close your a GST/HST account. For example, you may choose to sell or close your business. Perhaps your business no longer makes taxable supplies that require GST or HST payments. Maybe your company does sell taxable items, but you sell less than $30,000 of them in four consecutive quarters. If a member of the partnership retires from the firm or a larger company buys your small business, you no longer need to have a GST/HST account.
In any of these cases, you should close the account with the Canada Revenue Agency to avoid having to file returns or having a delinquent account.
How to Close Your GST/HST Account
To close an account, phone the Canada Revenue Agency at 1-800-959-5525. You can also complete Form RC145, Request to Close Business Number (BN) Program Accounts, and mail it to your local tax centre.
You must supply the CRA with your business number, legal name of the business, cancellation date and reason for closing your GST/HST account. After you close the account, you may have to file two returns with the CRA. One return files on any sales for the reporting period that ended the day before you closed your account. The second return reports any GST/HST that starts on the day you close your account and stops on the last day of the month, but only if you have any tax to pay for that period.
QuickBooks lets you manage sales and create and send invoices that require you to collect taxes. When you run custom reports on these sales, you can determine if you still need an HST/GST account. QuickBooks Online can help you maximize your tax deductions. Keep more of what you earn today.