Does my business have to collect sales taxes?
Most businesses in Canada have to collect the goods and services tax (GST)/harmonized sales tax (HST) on taxable supplies of property (goods) and services made in Canada, including many supplies of real property, like buildings and land, and intangible personal property, such as intellectual property rights, admissions and digitized products downloaded over the Internet.
The HST applies in the provinces that have harmonized their sales tax with the GST. These provinces are New Brunswick, Nova Scotia, Newfoundland and Labrador, Ontario and Prince Edward Island.
The GST is imposed on the supply of taxable property and services in the remaining provinces and territories, with the addition of a provincial sales tax or a retail tax depending on the jurisdiction. There is no provincial sales tax in Alberta or in Canada’s three territories.
Do I have to register for the GST/HST?
Generally, if you provide taxable property and services in Canada and your total taxable revenues exceed $30,000 in any single calendar quarter or in four consecutive calendar quarters, you will have to register for the GST/HST.
What are total taxable revenues?
Your total taxable revenues are all amounts earned from worldwide sales of taxable supplies for you and your associates, including the supply of zero-rated (taxable at zero percent) property and services. Supplies of goodwill, financial services and sales of capital property are excluded from this calculation.
Taxable supplies refer to the sale of property and services in the course of a commercial activity that are subject to the GST/HST.
Zero-rated supplies include things such as basic groceries (milk, bread and vegetables), agricultural products, prescription drugs and certain medical devices, feminine hygiene products, exports and many transportation services where the origin or destination is outside Canada.
How do I register for the GST/HST?
You generally received a GST/HST account number when you request a business number with the Canada Revenue Agency. You can also register voluntarily if you are not a resident of Canada.
Do I have to collect provincial sales taxes?
Businesses operating in provinces with the HST only have to register with the federal government and collect the harmonized tax.
However, if you sell taxable supplies in Saskatchewan, you may be required to register with the provincial government to collect the provincial sales tax.
Tax exemptions for small vendors vary from province to province. In Manitoba and British Columbia, for example, small vendors with total taxable revenues exceeding $10,000 are required to collect provincial taxes. There are no exemptions for small suppliers in Saskatchewan.