Registering for the Harmonized Sales Tax (HST) is an essential step for Ontario businesses expecting to make more than $30,000 in annual revenue. Here’s a detailed guide to help you through the registration process.
Step #1: Determine Your Eligibility
Ensure your business meets the criteria for HST registration. You need to register if:
Your total revenue exceeds $30,000 in any single calendar quarter or over four consecutive calendar quarters.
You operate a commercial activity in Canada and provide taxable goods and services.
Step #2: Gather Required Information
To register for HST, you'll need:
Business structure (e.g., sole proprietorship, partnership, corporation)
Social Insurance Number (SIN) or Business Number (BN)
Details about your business activities
Expected annual revenue
Step #3: Register for a Business Number (BN)
If you don't have a Business Number (BN), you must register for one. The BN is a unique identifier for your business and is required for HST registration. You can register for a BN through:
Online: Via the Canada Revenue Agency (CRA) Business Registration Online portal.
Phone: By calling the CRA at 1-800-959-5525.
Mail or Fax: By completing the Form RC1 and sending it to your nearest tax services office.
Step #4: Register for HST
Once you have a Business Number, you can register for HST through:
Online: Use the CRA Business Registration Online service.
Phone: Call the CRA’s Business Enquiries line at 1-800-959-5525.
Mail or Fax: Fill out Form RC1, Request for a Business Number, and mail or fax it to your nearest tax services office.
Step #5: Receive Your HST Number
After completing the registration process, you'll receive your HST number from the CRA.
This number will be used on invoices and for filing HST returns. It usually consists of your Business Number followed by the letters "RT" and a four-digit reference number (e.g., 123456789 RT0001).
Step #6: Start Collecting HST
Once you have your HST number, you must start collecting HST on your taxable sales and services. Ensure you:
Include HST on invoices: Clearly indicate the HST amount on your invoices and include your HST number.
Keep accurate records: Maintain detailed records of all sales, purchases, and HST collected and paid.
Step #7: File HST Returns
As an HST registrant, you must file HST returns and remit the collected HST to the CRA. The frequency of filing depends on your annual revenue:
Annual: For businesses with less than $1.5 million in revenue.
Quarterly: For businesses with revenue between $1.5 million and $6 million.
Monthly: For businesses with revenue over $6 million.
Filing and payment deadlines vary, so ensure you stay informed about your specific requirements.
Conclusion
Registering for HST in Ontario is straightforward if you follow these steps. Ensuring compliance with HST regulations is crucial for the smooth operation of your business. For detailed assistance and professional support, visit BALANCIFY, where our experts can help you manage all aspects of your business taxes.
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