GST Questions
When to register, choosing a reporting period, showing your GST number, and closing an account.
When to register for GST
When starting a business (incorporated or unincorporated), an important issue to consider is GST registration.
There are a number of specific issues and exceptions relating to when GST registration is required. However, the basic rules that apply to most entrepreneurs starting a business are:
- Is your business providing taxable supplies in Canada (selling goods or providing services)?
- Is your business considered a small supplier? As a basic rule, a small supplier is a business with less than $30,000 in total revenue (from worldwide taxable supplies from the business and those of your associates) in any single calendar quarter and in the last four consecutive quarters.
If your business is making taxable supplies, you can register for GST immediately, or follow the registration guidelines to determine the effective date of registration required (see the specific details and examples in the CRA links below).
If you decide not to register for GST when starting a business, it is important to understand when GST registration would apply to your business. There are specific deadlines for registration following supplies that take your business over the $30,000 small supplier threshold, and these must be met. It is also important to monitor when GST registration would be required, as there could be cases where GST must be retroactively removed from your revenue deposits, even though you have not yet registered.
What fiscal year and reporting period do I use when registering for a GST account?
When registering for a GST number, it is really important to tell the CRA accurately which fiscal period (fiscal year) and filing frequency (reporting period) you want.
Fiscal year: For self-employed individuals, the fiscal year for GST purposes should normally be December 31. For corporations, the fiscal year selected for GST registration should match the fiscal year-end chosen for the corporation. Talk to your accountant about the best fiscal period for your business.
Reporting period: The reporting period for GST is most often the registrant’s choice, unless certain revenue thresholds apply. For simplicity, businesses with revenues of less than $1,500,000 can choose a monthly, quarterly or annual reporting period. Each choice has implications that will affect your business for years to come.
Presentation of your GST number
When you are registered for GST, you must charge GST on your taxable supplies, and your GST number must be on the receipt or invoice you give your customer. The same applies to invoices from your vendors: make sure GST input tax credits (GST paid) are recorded in your bookkeeping only from receipts or invoices that show the vendor’s GST number.
How do I cancel or close my GST account?
To close your GST account, you need all of the following information:
- Business number (GST number)
- Legal name of the business
- Effective cancellation date
- Reason for closing the GST account
See the CRA links below for more information about closing a GST account (or making changes to it).
Do not close your GST account without first getting professional advice. Closing the GST account may trigger a deemed disposition of assets, and there are often other items on a business’s balance sheet to consider before cancelling a GST account.
CRA links for more information
More answers
Deadlines, payments & slips
Tax Deadlines
When personal and corporate returns are due, and when interest and penalties start.
Read the answer →Tax Instalments
Whether you need to pay personal or business tax instalments, and when.
Read the answer →Payments to the CRA
Ways to pay a balance owing to the Canada Revenue Agency electronically.
Read the answer →Filing T4s
Who must file T4 slips, the filing deadline, and where to get help.
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