![]() ![]() For example, if your business brought in more than $30,000 in sales between July 1 and June 30 of the following year, you’ve passed the threshold as a small supplier even though your sales were less than $30,000 in each calendar year.$30,000 within the previous four consecutive calendar quarters (not a calendar year).$30,000 in a single calendar quarter (three consecutive months), or.Examples of exempt services include child care fees and music lessons.Įxamples of each group type are available on the CRA’s web page, “Type of supply.” Do I have to pay GST/HST if I make less than $30,000?įor most businesses, the requirement to register for the GST/HST applies when you’re no longer a “small supplier.” This happens when your sales (before expenses) is more than:.Exempt- GST/HST is not collected and you cannot claim ITCs for any GST/HST paid.Those sales would be classified as zero-rated, as well. Another instance is if you are selling your services to businesses outside of Canada that are not registered.For example, if your business sells medical devices, such as hearing aids, no GST/HST is collected from your customers because these supplies are zero-rated.But as a registrant, you can claim ITCs for GST/HST paid to produce the goods/services. Zero-rated- GST/HST is not charged, collected, or remitted.As a registrant, you may also claim credits, called input tax credits (ITCs), for GST/HST paid to produce the goods and/or services. Taxable- GST/HST is charged, collected, and remitted.The CRA categorizes goods and services into three groups: To figure out the GST/HST rate your business should charge, you’ll need to know which supplies are taxable and at what rate. Essentially, it boils down to two factors: the type of supply you are selling and the amount of sales you have. Not all goods and services are subject to the GST/HST and not all businesses are required to charge, collect, and remit the tax. Does my small business need to collect GST/HST? On the other hand, with HST in New Brunswick, it will cost you $1.15. ![]() So, if you’re buying a bag of pretzels for $1.00, with GST in Alberta, it will cost you $1.05. ![]() (For additional information on the collection and remittance of PST, contact your provincial authority.) New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island charge 15%, whereas Ontario charges 13%. Harmonized sales tax (HST) is when the GST is collected together with the Provincial Sales Taxes (PST).Goods and services tax (GST), which is a 5% tax applied to most taxable items and services in all provinces and territories this includes British Columbia, Alberta, Manitoba, Saskatchewan, Quebec, Northwest Territories, Nunavut, and Yukon.For most businesses, when you offer goods and services, you are required to collect tax from your customers.īelow are the types of sales tax in Canada: ![]()
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