Tax Registration - GST/QST and GST/HST
Do I need to register for sales tax?
Here are some general guidelines as to who should register.
| GST - Goods and Services Tax/ QST - Quebec Sales Tax |
| GST is a federal sales tax levied on taxable goods and services. If you are selling non-taxable goods, then you cannot register. If you are a small supplier (sales less than $30,000) then registration is not mandatory. Registration is affected when you apply for the Federal Business Number (BN). The GST is calculated at a rate of 5%. |
| QST - If you supply taxable services or property, then you must collect QST and remit this to the government. If you do not expect to make a profit or are supplying tax-exempt property or services, then you cannot register for these taxes. Small suppliers (sales less than $30,000) can register for these taxes but they do not have to. The QST is calculated at a rate of $7.5%, including GST. |
| Therefore, the rule of thumb is that if your head office is in Quebec and your sales are in excess of $30,000 you need to register for GST/QST |
| GST/HST - Harmonized Sales Tax |
| Effective July 1, 2010 Ontario and British Columbia have moved to a harmonized sales tax thus eliminating the PST. Instead, your corporation will apply for GST/HST. The HST will be applied on most supplies of goods and services made in Ontario at a rate of 13%, consisting of the 5% federal portion and an 8% provincial portion. HST participating provinces as of July 1, 2010 are British Columbia (12%), Ontario (13%), Nova Scotia (15%), New Brunswick (13%), and Newfoundland and Labrador (13%). |
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Please note: GST/QST applications take 2-3 business days for processing. GST/HST applications are usually processed within 1-2 weeks depending on volumes at the government offices. This is a guideline.
** Plus applicable taxes
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