• Last Updated:
  • Aug 15th, 2017 12:51 am
Aug 8, 2017
9 posts

Tax (Under 30K gross)

So, I am planning to step out into entrepreneurship.
I keep reading how having under $30,000K gross in any fiscal year, means I do NOT have to register, or collect TAX.

This almost seems in a way, too good to be true for potential customers. If I am correct, no matter what I sell, the customer does NOT have to pay ANY tax in any way if I choose not to collect?

I can understand this when I sell across the Canadian border to the US. But I am somewhat weary here of oversimplifying something when it comes from province to province sales. I don't want to find out the hard way, if I sell from Ontario to someone in BC (for example), there is something I'm supposed to add on to charge for the government/municipality/etc and will bite me later on.

Thanks in advance for any reply on this. I'm definitely no expert on taxes here, and have found these forums so far quite enjoyable to read through.

P.S. Why is it I never see small start-up companies advertising products as 100% tax-free? Would seem this should be logical?
3 replies
Jul 24, 2016
7 posts
If you aren't registered for HST you will not be able to claim HST(ITCs) paid on your expenses. Depending on the type of business you plan on starting the ITCs can be significant, especially if you carry inventory.
Aug 8, 2017
9 posts
I understand that, but it's not like I am in the thousands. At least not any time soon.
Jun 25, 2011
265 posts
If you are small supplier which means your prior quarters or the sale in any month will not throw you over $30K small supplier limit then you don't have to register for GST/HST or charge any Excise Tax. The downside is you won't be eligible to claim ITC. Some times it can act in your favor if you are small guy and you don't have to charge GST/HST which means you can compete at lower price than your competitor. Be careful with your $30K threshold though. If you exceed that limit in any quarter or any sales which you push over the small supplier limit then you will be on hook to remit GST/HST even if you did not collect it.