Do I need to register?

As a corporation you have to register for a GST/HST account if both these apply:

1. You are not a “small supplier”, meaning your revenues from worldwide taxable supplies was equal to or more than $30,000 over the last four consecutive calendar quarters, AND

2. You make sales in Canada

If you don’t meet this criteria right away, but somehow during the year ended up meeting these criteria, you can still register for a GST/HST account and start charging GST/HST on the sales that made you exceed $30,000 CAD.

How much do I charge on sales?

The following table shows the HST rates for each province:

Province	Federal portion	Provincial portion	Total Sales Tax to charge
Alberta	5%		5%
British Columbia	5%	7%	12%
Manitoba	5%	7%	12%
New Brunswick	15%		15%
Newfoundland and Labrador	15%		15%
Nova Scotia	15%		15%
Northwest Territories	5%		5%
Nunavut	5%		5%
Ontario	13%		13%
Prince Edward Island	15%		15%
Quebec	5%	9.975%	14.975%
Saskatchewan	5%	6%	11%
Yukon	5%		5%

What do I do with the HST I collected?

You have to pay it directly to the government on an annual basis, if your net sales tax owing is less than $3,000 CAD. Blinc’s professional CPAs can help you calculate and remit GST/HST for your company.

How is it calculated?

Net sales tax owing is based on:

1. How much GST/HST you charged (i.e. you made $10,000 in sales, 13% HST = $1,300 in sales tax owing to CRA)

2. How much GST/HST you paid on expenses (i.e. you spent $4,000 on a tool, 13% HST = $520 in input tax credits owed to you from CRA).

As a result, $1,300 in sales tax collected minus $520 in sales tax you paid for expenses = $780 net tax payable to the CRA.

This is the simplest of examples and there are many nuanced cases that may need you to pay more or less sales tax to the CRA. Our group of CPAs can help you with this saving you time and potentially penalties and interest.

Do I need to charge tax on everything?

There are certain sales that are exempt from GST/HST, including:

• a sale of housing that was last used by an individual as a place of residence
• long-term rentals of residential accommodation (of one month or more) and residential condominium fees
• most health, medical, and dental services performed by licensed physicians or dentists for medical reasons
• child care services, where the primary purpose is to provide care and supervision to children 14 years of age or under for periods of less than 24 hours per day
• most domestic ferry services
• legal aid services
• many educational services such as:
  • a supply made by a vocational school of a service of instructing individuals in, or administering examinations in respect of, courses leading to certificates, diplomas, licences or similar documents, or classes or ratings in respect of licences, that attest to the competence of individuals to practise or perform a trade or vocation, except where the supplier has made an election using Form GST29, Educational Services - Election and Revocation of the Election to Make Certain Supplies Taxable
  • tutoring services made to an individual in a course that is approved for credit by, or that follows a curriculum designated by a school authority
• music lessons
• most services provided by financial institutions such as lending money or operating deposit accounts
• the issuance of insurance policies by an insurer and the arranging for the issuance of insurance policies by insurance agents
• most property and services provided by charities and public institutions
• certain property and services provided by governments, non-profit organizations, municipalities, and other public service bodies including municipal transit services and standard residential services such as water distribution

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Thankfully Blinc is staffed with professional CPA accountants who can help you register, calculate and remit your GST/HST on sales. Sign up today!