Self-Employed - getting a GST/HST Number
I thought someone in here might be able to help me. Presently I work from home, self-employed contractor/freelancer. I am considering adding a new type of business (still in the "thinking stages", but one where I will mainly still be working from home. The difference is that I will be selling a final product; and as such would have to charge tax on the sale.
I've been looking on different Business and Canadian government Web sites and my book keeper is presently away, or I'd ask him (heh). Does anyone know right off if I would be required to register as a business in order to apply for a GST/HST number?
Required to register and collect GST
Just to clarify, you have to collect GST on goods and services.
You MUST register and collect when your sales (of good and services) are more that $30,000. per year.
You can register if your sales are less than that, but generally, if you are providing services, it is not in your best financial interest.
:?: if you are providing services, it is not in your best financial interest.
If you are registered for GST, you can claim back the GST you pay out to operate your business (buying inventory, overhead ) and this is deducted from the gst you collect on your sales and you remit only the difference.
If you are selling your own services, as opposed to selling products, you are not paying out as much GST. You really have to crunch the numbers to see if it is worthwhile for you to register.
You must also consider who your customer is. If you are selling to other GST registered businesses, they don't care, because they will just claim back any GST they pay out. But if you are dealing with "consumers" or non-registrants, do you really want to add 7% to your price if you dont have to?