GST and HST are sales taxes that most businesses that offer goods or services in Canada charge customers. These businesses remit the GST or HST they collect to their provincial government.
Businesses that offer taxable supplies and make more than $30,000 in a calendar quarter are mandatory to register a GST/HST account. Small businesses aren’t required to register for one, but they can choose to do so. Take the following steps to determine if you should register for a GST/HST account:
- Decide if you’re going to charge GST/HST. If you choose to charge GST/HST, you should register for a GST/HST account.
- Calculate the amount of input tax credit (ITC) you can claim from the GST/HST you paid on your purchases.
- If the amount of ITC is worth the effort of filing your GST/HST return on a regular basis, you should register for a GST/HST account.