Self-Employed - getting a GST/HST Number

[mcewen]

Most of the information here is good, but a bit needs to be clarified.

PST/RST, however, is required when selling "products", and there is no minimum -- if you sell a product, you have to collect PST. You need to get a Vendor Permit from your local tax office to collect PST. A Vendor Permit also makes you exempt from paying PST on items that you plan on reselling.

A VP does not exempt you from paying PST on items you plan on reselling. A PEC (or Purchase Exemption Certificate) does this. Call your local tax office for more information.

Technically speaking, the government can levy some pretty decent fines for failure to remit a PST return, even if you haven't collected any PST! That being said, I doubt they would, but it's always a possibility...

A 10% penalty on nil tax owing is still nil. The province (Ontario) does not fine for non-filing the PST returns if they are nil.

[yatyat]

so can you apply for a pst exempt number and a gst number if operate business under your own name and not registering for one? i have got my name approved and having a hard time deciding whether to register for it. also, the pst that i paid before the business is registered, would i be able to claim that back (it will be obvious that its related to the business).

thanks,

[yatyat]

bump.

[Spidey]

But what about here in alberta, where there is no pst, only gst?

We're lucky then. One less piece of paperwork to worry about.

I dont charge GST either. Sinmce I dont make $30,000 a year I dont botyher. Plus its incentive for people to hire me, as then they save the tax too

[blue_xii]

What if you collect GST from people but you don't exceed $30k in sales what happens then to that money? Do you just keep it as profit? Do you refund it? And here's the weird scenario, what if you make over 30k only after keeping the GST assuming you keep the GST you chraged for yourself.

[Bullseye]

What if you collect GST from people but you don't exceed $30k in sales what happens then to that money? Do you just keep it as profit? Do you refund it? And here's the weird scenario, what if you make over 30k only after keeping the GST assuming you keep the GST you chraged for yourself.

If you decide to not remit GST, then you also do not collect it! The CRA would be rather upset if you just pocketed it for yourself.

[nabeel]

also, the pst that i paid before the business is registered, would i be able to claim that back (it will be obvious that its related to the business).

This PST you paid before registering, is it inventory for resale? If not, assuming you're in Ontario, it can not be PST exempt.

[x21hx]

Regarding GST and overhead, I heard that you can also claim back gst to gas, car maintanence, business related entertainment, portion of hydro condo fees if you work at home, phone bill.

Is that right or was I mislead?

Thanks for the tips from the experts!

[nabeel]

Regarding GST and overhead, I heard that you can also claim back gst to gas, car maintanence, business related entertainment, portion of hydro condo fees if you work at home, phone bill.

That's right, that works for GST. They are called Input Tax Credits (ITCs). If you're GST registered, when you're reporting, you add up the GST paid and add up the GST collected and remit, or receive a refund for, the difference.

However, as someone mentioned, there's a minimum annual revenue level before you *have* to register for GST. That doesn't mean you have to hit that level to register, however.

Ontario does not allow you to claim ITCs for PST though. However, selling even $0.50 of PST-taxable products in a year requires you to register. In fact, even if you "regularly" bring in items for business use from out of province, you are required to register to self-assess PST on thos items.

[Jon Lai]

Do you need to be 18 to register for a GST number or as long as you have SIN# you're fine?