How to Report Zero-Rated GST Exports?

biztyke · ‎April 27, 2023

Hey everyone, I’m in a bit of a bind, and I can’t call the CRA for answers because they are on strike, so am hoping someone here can help.

My situation is as follows: I am filing taxes for the first time for the new online marketing business I started last year. In case it’s important to note, the business and tax return are officially in my name and tied to my SIN rather than a business name and number. The two clients I have are both based in Europe and pay me in euros. As the services I provide should all be zero-rated, I have not charged any of them GST nor have I registered for a GST number.

As a result, my accountant, who uses ProFile, doesn’t know how to report that my income is zero-rated, and ProFile automatically flags the field where the GST should be. I don’t want to file my taxes in their current state lest the CRA sees it as a red flag that I earned a substantial income yet did not charge any GST.

After doing some research into this, I learned (and communicated to my accountant) that I need to fill out a GST return form. However, can I do this without having a GST number? Do I need to register for a GST number even though all of my income is zero-rated?

How can I make things clear (using ProFile or any other methods) to the government? What options do I have here?

Any advice on this will be greatly appreciated, as I’ve spent hours the past few days trying to figure this out.

Thanks in advance!

janisbossenberry · ‎April 27, 2023

If you are supplying services to non-residents, and if you have confirmed that they are zero-rated supplies, then yes, you must register for a GST number. You are considered to be performing taxable services, it is just that they are taxable at 0% instead of 5% or whatever HST rate your province has. Being a GST registrant then allows you to claim back ITC'c for any GST/HST you have paid on your expenses.

There is no need to report show that you have zero-rated, exempt, or fully taxable sales on the tax return business statement. You simply report all of your income.

However, if your gross annual revenue (zero-rated or otherwise) is less than $30,000, you do not need to register, cannot claim ITC's, and that fact that some or all of your services are zero-rated is irrelevant.

biztyke · ‎May 09, 2023

Hey, thanks so much for your input and spelling it all out for me. I thought I replied shortly after but was so busy at the time I guess I forgot. Anywho, I got everything sorted, registered for a GST account (which was backdated to last August) and everything should be groovy from here on in. Thanks again.