If you’re starting a new business in Ontario or expanding your current operations, understanding the Harmonized Sales Tax (HST) is crucial. The HST combines the federal Goods and Services Tax (GST) and the provincial sales tax into a single, streamlined tax. Registering for HST is a necessary step for many businesses, especially those with a significant turnover or those making taxable supplies. This blog post will guide you through the process of registering for HST in Ontario, providing useful tips along the way.
Who Needs to Register for HST?
Before embarking on the registration process, it’s essential to determine if your business needs to register for HST. You must register if:
- Your total taxable revenues exceed $30,000 in the last four consecutive quarters.
- You provide selected taxable supplies, such as professional services or retail sales.
- You want to claim Input Tax Credits (ITCs) for the HST you paid on purchases related to your business.
- You operate a charity or a non-profit organization and make taxable supplies.
If your revenue is below the $30,000 threshold, you may still choose to register voluntarily. This could benefit your business by allowing you to reclaim HST on your business purchases.
How to Register for HST in Ontario
Registering for HST in Ontario can be done online, by mail, or by phone. Here’s how to navigate each option:
1. Online Registration
The easiest and fastest way to register is through the Canada Revenue Agency (CRA) website. Follow these steps:
- Visit the CRA’s HST page.
- Find the section for new registrants and select the option to register online.
- Log in using your CRA My Business Account. If you don’t have an account, you’ll need to create one, which may take a few days to process.
- Fill out the required information about your business, including the type of business, contact information, and financial details.
- Review your application and submit it. You should receive confirmation of your registration shortly thereafter.
2. Registration by Mail
If you prefer to register by mail, you can still do so by completing Form GST20, “Business Number (BN) Registration.” Here’s how:
- Download and print Form GST20 from the CRA’s website.
- Fill out the form, providing all necessary information about your business.
- Mail the completed form to the address specified on the form. Make sure to send it via a secure mailing method to ensure it’s received.
- Allow a few weeks for processing. The CRA will send you a confirmation of your registration by mail.
3. Registration by Phone
If you’re not comfortable using the internet or mail, you can also register by phone. Here’s what to do:
- Call the CRA’s Business Enquiries Line at 1-800-959-5525.
- Have the necessary business information ready, such as your Social Insurance Number (SIN), business structure details, and revenue information.
- A CRA representative will assist you in completing your registration over the phone.
What Happens After Registration?
Once your application is approved, you will receive a Business Number (BN) and an HST registration number. These will be required on all invoices and receipts you issue, and you’ll need to use this number when filing your HST returns.
Reporting and Remitting HST
After you’re registered, you must start collecting HST on your taxable supplies. It’s important to keep track of the HST you collect and the HST you pay on your business expenses. You can then file your HST returns, typically every quarter or annually, depending on your revenue and filing options selected during your registration.
As a registrant, you will also be required to charge the correct HST rate. In Ontario, the HST is 13% (5% federal GST + 8% provincial portion). Make sure to stay updated on any changes to tax regulations that may occur.
Conclusion
Registering for HST in Ontario is a straightforward process if you follow the right steps. Whether you choose online, by mail, or by phone, being well-prepared will ensure a smooth registration experience. Remember to keep accurate records and comply with reporting requirements to maintain good standing with the CRA. If you have any questions or uncertainties during the registration process, consider reaching out to a tax professional for personalized assistance.
