GST and HST for small businesses

operating_expensesDoes your small business need to charge GST/HST?

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.

For more about GST and HST, check out our blog post: Tip of the Month: Small Business and GST.

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