Many entrepreneurs ask this question when starting a new business.

You are not required to register for GST/HST until your annual revenues exceed $30,000. However, it is generally recommended to register as soon as possible for the following reasons:
• Without registration you cannot claim GST/HST input tax credits (GST/HST paid on business expenses).

If your GST/HST taxable expenses are higher than your GST/HST taxable sales you can claim a refund of the excess from Canada Revenue Agency.
• If you are not registered for GST/HST, you are broadcasting to everyone that you have a truly small business that generates less than $30,000 per year in sales. Do you really want everyone to know that?

Keep in mind that if your customers are other businesses, then the GST/HST that you charge on sales does not represent a direct cost for them. Most businesses expect to pay GST/HST and would be surprised if you do not charge it.
• Businesses that are required to register for GST/HST must remit it to Canada Revenue Agency – even if it has not been collected from the customer.

If you forget to register for GST/HST and your sales surpass the $30,000 level, you will find yourself being registered retroactively and having to pay GST/HST out of your own pocket.
Read more details about GST/HST here and plan to register as soon as you can.


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