Canada

GST/HST registration in Canada

The Canadian goods and services tax/harmonized sales tax (GST/HST) applies to non-residents doing business in Canada. A GST/HST account number is part of a business number (BN). If you don’t have a BN yet, you will receive one when you register for your GST/HST account. A non-resident person is not necessarily considered to be carrying on business in Canada for income tax purposes simply because that person is considered to be carrying on business in Canada for GST/HST purposes. Small supplier does not need GST/HST registration. You are no longer a small supplier and you must register for the GST/HST if your total revenues from taxable supplies are over $30,000 ($50,000 for public service bodies) in a single calendar quarter or over four consecutive calendar quarters.

Even if you do not have to register for the GST/HST because you are a small supplier or because you do not carry on business in Canada, still you can choose to voluntarily GST/HST registration.

GST/HST returns and payment

When you register for the GST/HST, Canadian tax office will give you a reporting period. Reporting periods are the periods of time for which you file your GST/HST returns. For each reporting period, you have to prepare and send us a GST/HST return showing the amount of the GST/HST. You charged or collected from your customers and the amount of the GST/HST paid or payable to your suppliers. Your reporting period is determined based on the revenue from your total taxable supplies of property and services made in Canada in your immediately preceding fiscal year or in all preceding fiscal quarters ending in that fiscal year.

Canadian tax office can charge penalties and interest on any returns or amounts CRA has not received by the due date. Canadian tax office will hold any GST/HST refund or rebate you are entitled to until Canadian tax office receive all outstanding returns and amounts. If you are a sole proprietor or partnership, your personal income tax refund will also be held. If you are closing a GST/HST account, you must file a final return.

You must file a GST/HST return even if you have:

  • no business transactions
  • no net tax to remit

When a due date falls on a Saturday, a Sunday, or a public holiday recognized by the Canada Revenue Agency, your payment is on time if Canadian tax office receive it on the next business day.

GST/HST filing and payment deadlines

The filing deadline will be different depending on your GST/HST filing period.

See filing deadlines for the different filing periods:

  • monthly
  • quarterly
  • annually – (except for individuals with a December 31 fiscal year-end and business income for income tax purposes)
  • annually – (individuals with a December 31 fiscal year-end and business income for income tax purposes)

Deregister GST/HST account

When you are ready to close (deregister) your GST/HST account, you will need all the following information:

  • business number (BN)
  • legal name of the business
  • cancellation date
  • reason for closing the GST/HST account

Fill out Form RC145, Request to Close Business Number Program Accounts