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  • Apr 30th, 2018 11:04 am
[OP]
Member
Nov 20, 2014
380 posts
133 upvotes
Woodbridge, ON

Sole Proprietorship question

Hi guys,

For sole proprietorship company, we have to register for a HST number and charge HST if we earn over $30,000.

For the $30,000 amount, does this include the full time job I have as well? Since this is all being reported via my income tax, I would be over the $30,000.

Thanks!
6 replies
Newbie
Aug 10, 2016
28 posts
14 upvotes
I'm not 100% sure but I don't believe so. The income you generate as a business is separate from your income at your job (which is taxed already), even though you are claiming it as part of your personal income. The business has to follow proper accounting procedures and so its income would need to be over 30k in order to do it. For confirmation, you can always call CRA and ask them.
Newbie
Aug 8, 2017
40 posts
13 upvotes
I used to wonder about this very question myself, and have never seen it fully explained one way or another from an authorized resource.
Deal Addict
Feb 5, 2009
2808 posts
935 upvotes
Newmarket
Dxclo91 wrote:

For the $30,000 amount, does this include the full time job I have as well? Since this is all being reported via my income tax, I would be over the $30,000.

Thanks!
It only relates to self-employed income, you can have $200k in wages, $500K in investment income, and as long as your self employment income does not exceed $30K in four consecutive quarters you don't need to register for hst.
[OP]
Member
Nov 20, 2014
380 posts
133 upvotes
Woodbridge, ON
johnniemomo wrote: I'm not 100% sure but I don't believe so. The income you generate as a business is separate from your income at your job (which is taxed already), even though you are claiming it as part of your personal income. The business has to follow proper accounting procedures and so its income would need to be over 30k in order to do it. For confirmation, you can always call CRA and ask them.
Homerhomer wrote: It only relates to self-employed income, you can have $200k in wages, $500K in investment income, and as long as your self employment income does not exceed $30K in four consecutive quarters you don't need to register for hst.

Thank you for the information!
Deal Guru
User avatar
Mar 23, 2008
12633 posts
9239 upvotes
Edmonton
Keep in mind it's revenue, not "income" (revenue - expenses) that drives GST/HST reporting. Depending on your business model, there can be a significant difference between those two numbers.

C
Penalty Box
Jun 24, 2015
5295 posts
1624 upvotes
0 downvotes
yes Cneufield is right, my revenue was OVER 30G but my income was under, due to a lot of things like expenses for travel, hotels, rental cars, once i deduct that I am lower, so yeah i declared it anyways cus u never know, plus some businesses need proof of gst/hst registration before they even consider writing you a cheque, mostly to cover their arse
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