If you have incorporated your business in Ontario and are now providing goods or services in Canada, you will need to register for the Harmonized Sales Tax (HST) or the Goods and Services Tax (GST). This is a legal requirement for all businesses that earn more than $30,000 in revenue annually.
Here is what you need to know about registering for HST/GST as an incorporated business in Ontario.
What is HST/GST?
HST is a combined federal and provincial tax that is applied to most goods and services sold in Ontario. GST is a federal tax that is applied to most goods and services sold in Canada.
If your business has a physical presence in Ontario and you provide taxable goods or services, you must charge HST on your sales. If your business is located outside of Ontario but provides taxable goods or services in the province, you may still need to register for HST/GST.
Why do you need to register?
Once you register for HST/GST, you will be required to collect the appropriate taxes from your customers and remit them to the Canada Revenue Agency (CRA) on a regular basis. If you do not register and collect the appropriate taxes, you may face penalties and interest charges.
Additionally, registering for HST/GST allows you to claim input tax credits (ITCs) for the HST/GST paid on business expenses, which can help reduce your tax liability.
How to register for HST/GST
To register for HST/GST, you can complete the registration process online through the CRA’s Business Registration Online (BRO) service, or you can submit a paper application. You will need to provide the following information:
- Your business number (BN)
- Your legal business name and operating name (if different)
- Your business address and phone number
- The type of business you are registering (corporation, sole proprietorship, partnership, etc.)
- The date you started or acquired the business
- Your estimated annual sales and revenue
Once you have registered, you will receive a GST/HST account number and will be able to start collecting and remitting the appropriate taxes.
It is important to note that even if you are not currently earning more than $30,000 in revenue, you may still choose to voluntarily register for HST/GST. This can allow you to claim input tax credits and can also help you appear more professional to potential customers and clients.
Contact a lawyer
If you are unsure whether you need to register for HST/GST or have questions about the registration process, it may be helpful to consult with a business lawyer. A lawyer can help ensure that you are in compliance with all legal requirements and can provide guidance on how to structure your business to minimize your tax liability.
Contact Falcon Law PC at 1-877-892-7778 or info@falconlawyers.ca for assistance with registering for HST/GST or any other legal needs related to your incorporated business in Ontario.
