Tax season is upon us, and many small businesses owners around Canada are busy getting their financial ducks in a row. At GoForth, we know tax time can be stressful or confusing, so we’ve compiled some tax-related blog posts that will hopefully shed some light on this topic for you.
Goods and Services Tax (GST) or Harmonized Sales Tax (integrated provincial taxes with the GST, also called HST) must be collected if your business’ yearly revenue is greater than $30,000. If that applies to your small business, you must charge customers or clients GST/HST on your taxable goods and services.
GST/HST exceptions and exemptions
For charities, non-profit agencies and universities, the GST/HST rules are a bit different – it’s charged if revenues exceed $50,000. Generally speaking, financial services are exempt for GST/HST purposes. Other exemptions include taxi and limousine operators. Make sure you double-check the GST/HST requirements for your specific business.
Province-specific tax requirements
In all provinces except for Alberta, Northwest Territories, Yukon and Nunavut, you may also need to collect and submit retail sales tax (also called Provincial Sales Tax — PST — or social services tax). Research your province’s tax requirements to find out whether or not your products or services mean you have to charge additional tax. Check registration procedures too.
Filing your small business’ taxes with the CRA is something all entrepreneurs worry about doing on time and correctly. But what do you do if you make an honest mistake with your taxes? What if you forgot to include something, didn’t know something was taxable, or made an incorrect entry?
Are you on LinkedIn? If so, we’d love to have you at the Canadian Entrepreneurship Group. The group was started by GoForth Institute for entrepreneurs either thinking of starting a small business, in the start up business phase, or wanting to grow their business – much like our small business training! The group is also great for for entrepreneurs and small business professionals looking to learn about the latest discoveries in Canadian small business research.
This month at the Canadian Entrepreneurship Group, we’ve been talking taxes. We discuss tax software for Canadian entrepreneurs and share some insights on GoForth Institute Essential Small Business Skills™ – Skill #92: Income Taxes.