Goods and Service Tax | Toronto Tax Lawyer

Defining Goods and Service Tax (GST)

As a business owner in Canada, you must be aware of your obligations related to the GST, also known as the Good and Services Tax. The GST is a consumption sales tax meaning that the person who is buying the product has to pay the tax rather than the seller paying it. The party buying a service or good subjected to this tax must therefore, pay in on each affected transaction.

This GST tax is also a form of percentage consumption tax, meaning that the total amount of tax charged depends on the cost of the service or good in question prior to taxes. Although the consumer has to pay the GST tax, that money must then be remitted to the government by the seller. The GST is applied to many services and goods changing hands between businesses, organizations, and individuals, although some items are exempted.

what is GST

Since it is the responsibility of the seller in order to account for this sales tax, knowing how much to collect and how it must be remitted are crucial. The insight of an attorney can make a big difference in managing this information. An attorney can also be helpful if there are audits or objections surrounding the GST, since an attorney can review your records and ensure that you have everything in order in the event that you need to defend yourself to the CRA. A lawyer’s knowledge about this process can make things much easier for you and give you confidence that you’re prepared if a problem does emerge.

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FAQ’s

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.

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.

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.

The secret to flip houses successfully in Toronto is to research the market well and know the laws. You need to find a cheap house that’s underpriced and renovate it, selling it for a good profit quickly. It’s also important to know how much you will spend on taxes, too. Before you flip a house, you should know that it’s a good idea to contact a professional for tax services. Taxes can be an unknown cost if you’re not well-informed.