What is the income limit for GST rebate?

For someone to claim a GST rebate, this person needs to have an income of $44,000 or less in the previous period. In the case of a family with children, the net income should be $54,000 or less. The period always goes from July to June of each year, not January to December, as some people seem to think. In order to get a tax rebate, you need to file a personal income tax return first.

How do I know if I qualify for GST rebate?

It’s easy to know if you're eligible for GST credit. There are two main aspects to watch out for: age and how much money you made in the last year (from July to June). First, you need to be over 19 years old or have a spouse of this age. If you and your spouse are below 19 years old, you can receive rebates if you have a child. Then, you need to have an income of $44,000 or less in the last year, or $54,000 if you're married.

What happens if a supplier is not registered for GST?

Suppliers that are not registered may face some problems, as well as their clients. For instance, they may not charge GST at all, which means that they cannot claim GST, either. This means that you cannot issue an invoice for your supplies legally. For the customers, this means that they can’t use the invoices to claim back taxes. This is why it’s important to register if you have a business and do everything according to the law.

GST/HST Registration Requirements - GST & HST Tax Lawyer

Goods and Sales Tax and Harmonized Sales Tax (GST/HST) Registration Requirements – A Toronto Tax Lawyer Analysis

What Is GST/HST?

GST/HST is a consumption tax. HST is collected in provinces where the Federal sales tax and provincial sales tax (PST) have been combined into a single value added sales tax. The provinces which currently collect HST are New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and Prince Edward Island, while the other Canadian provinces collect GST and PST separately, except Alberta which collects only GST and does not charge or collect PST. GST/HST is levied under the Excise Tax Act and generally applies to all taxable supplies, which is the provision (sale) of property or services in any manner whatever that is made in the course of a commercial transaction, subject to some exceptions such as zero-rated and exempt supplies.

Essentially, whenever a good or service is provided commercially, GST/HST will generally apply. While it is the person who purchased the taxable supply that owes the GST/HST to the Canada Revenue Agency, the supplier is the one required to collect and remit the tax. Every person who makes a taxable supply in the course of a commercial activity in Canada is required to be registered unless exempted as set out below. Where a person is a GST/HST registrant, that person will need to collect GST/HST and remit it, effectively increasing the prices/cost of their supplies to the ultimate consumer.

There are 3 exceptions that allow a person not to be registered: 1) where the supplier is a small supplier; 2) where the only commercial activity is the making of supplies of real property by way of sale otherwise than in the course of a business; 3) where the person is a non-resident person who does not carry on business in Canada. Consult with one of our experienced Toronto tax lawyers and determine if you are meeting your obligations regarding GST/HST registration.

Exemptions for GST/HST Registration

hst registration ontario

The first GST/HST registration exemption is for small suppliers. A small supplier has the advantage of being exempt from registering for a GST/HST number and can carry out their commercial activity without collecting and remitting GST/HST. In order to qualify as a small supplier, a person must have revenues below $30,000 in the previous four calendar quarters. Where a person is a public service body, the person must have revenues below $50,000 in the previous four calendar quarters to qualify as a small supplier. Additionally, regardless of how much revenues were earned in the previous four calendar quarters, if in the current calendar quarter, the person earns revenues of $30,000 or greater, or $50,000 or greater in the case of a public service body, then that person will no longer qualify as a small supplier and will be required to become a GST/HST registrant.

The second GST/HST registration exemption applies where a person sells or transfers real property not in the course of a business. Basically, if a person who is not in the real estate business sells real estate, they are exempt from registering for GST/HST purposes.

The third GST/HST registration exemption applies to persons who might carry out a taxable service or transfer goods in Canada, but is a not a resident of Canada and does not carry on their business in Canada and therefore does not need to register for GST/HST purposes..However the 2017 Federal Budget has introduced new rules requiring that ride sharing or ride hailing services like Uber and Lyft will need to collect and remit GST/HST on fares even if they don’t meet the regular $30,000 threshold and would otherwise qualify as a small supplier. This will bring these services more in line with taxi services which are already required to collect and remit GST/HST. Call our top Toronto tax lawyer firm if you have any questions about GST/HST Registration or about the 2017 Federal Budget.

FAQ’s

What does permanent establishment of a person mean?

A permanent establishment of a person means they have general authority to contract for the corporation or have a stock of merchandise owned by the corporation from which they regularly fill orders received.

What are zero-rated supplies?

These refer to property supplies that are not taxed by GST/HST. However, GST/HST registrants are eligible to claim their ITCs payable on property and services acquired to provide these supplies.

How can a representative handle business taxes online?

A representative can handle business taxes online only when they are given the immediate access to your CRA account. You must already be registered with My Business Account. Another online method is your representative submits an authorizatiob request via EFILE. They should be a registered electronic filer in good standing.