Should you register?
You have to register for GST/HST if:
you provide taxable supplies in Canada; and
you are not a small supplier.
Small supplier
You are a small supplier and do not have to register if you meet one of the following conditions:
If you are a sole proprietor, your total revenues from taxable supplies (before expenses) from all of your businesses are $30,000 or less in the last four consecutive calendar quarters and in any single calendar quarter.
"In all cases, total revenues from taxable supplies means your worldwide revenues from your supplies of goods and services that are subject to GST/HST (including zero-rated supplies), or that would be subject to the tax if supplied in Canada"
Keep reading:
http://www.cra-arc.gc.ca/E/pub/gp/rc4022/rc4022-e.html .
You have to register for GST/HST if:
you provide taxable supplies in Canada; and
you are not a small supplier.
Small supplier
You are a small supplier and do not have to register if you meet one of the following conditions:
If you are a sole proprietor, your total revenues from taxable supplies (before expenses) from all of your businesses are $30,000 or less in the last four consecutive calendar quarters and in any single calendar quarter.
"In all cases, total revenues from taxable supplies means your worldwide revenues from your supplies of goods and services that are subject to GST/HST (including zero-rated supplies), or that would be subject to the tax if supplied in Canada"
Keep reading:
http://www.cra-arc.gc.ca/E/pub/gp/rc4022/rc4022-e.html .
Effective date of registration
The effective date of your GST/HST registration depends on when you exceed the small supplier threshold amount of $30,000 ($50,000 if you are a public service body). If you exceed the threshold amount in one calendar quarter, you are considered a registrant and must collect GST/HST on the supply that made you exceed the threshold amount. Your effective date of registration would be the day you made the supply that made you exceed the threshold amount. You have 29 days from this day to apply for registration.
However, if you do not exceed the threshold amount in one calendar quarter, but you do over four consecutive calendar quarters, you are considered to be a small supplier for those four calendar quarters and a month following those quarters. Your effective date of registration would be the day the first supply was made after you cease being a small supplier. You have 29 days from this day to register for GST/HST. .
The effective date of your GST/HST registration depends on when you exceed the small supplier threshold amount of $30,000 ($50,000 if you are a public service body). If you exceed the threshold amount in one calendar quarter, you are considered a registrant and must collect GST/HST on the supply that made you exceed the threshold amount. Your effective date of registration would be the day you made the supply that made you exceed the threshold amount. You have 29 days from this day to apply for registration.
However, if you do not exceed the threshold amount in one calendar quarter, but you do over four consecutive calendar quarters, you are considered to be a small supplier for those four calendar quarters and a month following those quarters. Your effective date of registration would be the day the first supply was made after you cease being a small supplier. You have 29 days from this day to register for GST/HST. .
Voluntary registration
If you are a small supplier and you are engaged in a commercial activity in Canada, you can choose to register voluntarily, even though you are not legally required to do so. If you register voluntarily, you have to charge and remit GST/HST on your taxable supplies of goods and services, and you can claim ITCs for the GST/HST you paid or owe on purchases related to these supplies. You have to stay registered for at least one year before you can ask to cancel your registration. For more information, see Cancelling your registration.
If you choose not to register, you cannot charge your customers GST/HST, and the GST/HST you pay on your business purchases becomes a cost for which you cannot claim ITCs. .
If you are a small supplier and you are engaged in a commercial activity in Canada, you can choose to register voluntarily, even though you are not legally required to do so. If you register voluntarily, you have to charge and remit GST/HST on your taxable supplies of goods and services, and you can claim ITCs for the GST/HST you paid or owe on purchases related to these supplies. You have to stay registered for at least one year before you can ask to cancel your registration. For more information, see Cancelling your registration.
If you choose not to register, you cannot charge your customers GST/HST, and the GST/HST you pay on your business purchases becomes a cost for which you cannot claim ITCs. .
"Auditors reply: Good, you are correct and do not need to register for a GST#."
Either the auditor did not understand the question (may have misunderstood the "less than $30,000") or ....
Since you do not believe the information clearly spelled out on the CRA website, do yourself a favour. Call CRA (toll free), give them the facts (annual sales of taxable products $60,000 of which only $15,000 within Canada for example) and ask: do have have to be GST/HST registered?
Can I get that in writing, please! ;-) .
Either the auditor did not understand the question (may have misunderstood the "less than $30,000") or ....
Since you do not believe the information clearly spelled out on the CRA website, do yourself a favour. Call CRA (toll free), give them the facts (annual sales of taxable products $60,000 of which only $15,000 within Canada for example) and ask: do have have to be GST/HST registered?
Can I get that in writing, please! ;-) .
"taxable" does not mean Canadian sales.
taxable can be zero rated (taxable products taxed at the 0% rate when exported).
Why argue? .
taxable can be zero rated (taxable products taxed at the 0% rate when exported).
Why argue? .
