Do you Have to Pay for a Business Number in British Columbia?

[qualityplussizeclothing]

I have a friend who said when he lived in a different province, he got a free business number.

As far as I know though from researching, You have to pay a name approval and business number free which totals just over $70.

I was just wondering if anyone knew of a way you can get a Business Number for free or if my friend is just mistaken.

I was also curious if many people get a business number so they can order wholesale inventory to sell.

Thanks

[femmefan1946]

I think you are looking for a Retail Sales Tax registration number.

I had one of these in Ontario, but it was free when I registered many years ago. It allowed me to charge my customers sales tax and remit those taxes to the provincial government.

From the point of view of the government, it is the remittance of those taxes that is the important part.

Most companies that are selling to re-sellers will want that number because they can claim back the GST or HST that they paid themselves, when they sell to you.

If they are not asking for the number at all, you are paying retail. If they ask and you don't have one, your terms may be stricter, since their profit will be smaller. But they will probably not refuse you.

I believe the magic number is $30,000 gross annually before you are required to register to collect and remit taxes.

But if you are grossing that much from your business, you should consult an actual tax expert rather than listening to strangers on the internet.

Free advice is worth every penny you pay for it.

Oh. One place you can get useful free advice is in the Blue Pages of your telephone book. The paper one. If you don't have one, go to the Public Library. Phone the provincial sales tax office and ask for brochures and application forms. If you decide this is not necessary at this point in your business, they are not going to be following up on it.

[qualityplussizeclothing]

Hey thanks for the reply.

I know that I will have to register for a GST number once (if ever haha) I start making 30k a year, but right now I'm just starting out and I have the money and everything ready and I have found wholesalers to buy from but they all require a business number in order for me to order from them.

I was just curious if I had to pay for a business number for sure or if there was another way. I don't need a GST number yet as far as I know so I cant just get one of those for free.

[reallynicestamps]

Call the BC Service One office.

If there is a cost, it is a business expense for your taxes.

Remember that most of your costs of doing business are deductible.

Keep careful records, including records of when you get sales and when you are staring into the abyss. In the long run, it will make it easier to ride out the roller coaster that is retail.

And congratulations on finding suppliers who are REAL WHOLESALERS!

[pierrelebel]

"register for a GST number once I start making 30k a year"

Registration for GST/HST is required once your annual worldwide revenues (sales and shipping charges) reach Cdn$ 30,000

Many Canadian sellers do register with GST/HST and find it financially advantageous even if their annual revenues are well below the $30,000 level.

This would apply if you purchase goods for resale and a large portion of your sales go outside Canada.  Once GST/HST registered, you are entitled to 100% refund of all the GST/HST you pay on your purchases and business related expenses while you must remit the tax payable on your taxable sales made to customers located in Canada (rate varies by province).

While you may not need GST/HST registration at this time, you should set up a good bookkeeping system to keep track of your purchases, sales and business related expenses.  Income tax applies from the first dollar of net profit you make - no minimum.