As a small business owner, do you know when your business should start collecting HST?
The Canadian Revenue Agency (CRA) states that you have to register for an HST account if:
You make taxable sales, leases, or other supplies in Canada
And you are not a small supplier
This could be confusing, especially if you do not know if your goods or services are taxable or what qualifies as a small supplier.
A general rule of thumb is that once your business sales exceed $30,000, your business is no longer considered a small supplier and you are required to register and collect HST.
While sales tax is charged on most goods and services, there are some that are exempt. Basic groceries, agricultural products, prescription drugs, long-term rentals of residential accommodation and legal aid services are some examples of exemptions. For a more comprehensive list of exempt goods and services visit the CRA website here.
Here are some more in-depth examples of when your business should register and start collecting HST and the date you need to start collecting HST.
You are an expert in your field, we are an expert in ours. Let Keenans Accounting Service support your business with all of your bookkeeping and accounting needs, including your government remittances for HST. Give us a call at 705-526-7628 to arrange a consultation by phone or via Zoom meeting. Contactless, secure document dropoff and pickup are available at our offices in Downtown Midland.