After returning from traveling I wanted the flexibility/freedom involved with being an independent contractor. As a newly self-employed individual my taxes are now my responsibilities and this has lead to a lot of questions, when and how should I charge GST/HST? Unfortunately I couldn’t get a straight answer on when to start charging but after a lot of searching I found a this article by Susan Ward that explains it in simple English and for a self-employed contractor like myself leaves very little to questions.
Most of us will start our business as a small supplier and have no need to charge GST/HST, there are 2 scenarios where you lose your small supplier status and therefore need to charge GST/HST:
1) If you are lucky enough to make more then $30,000 in sales (before expenses) in one calendar quarter (3 months) then at this point you are considered a GST registrant. You will have to collect GST/HST on the supply that made your revenue go over $30,000 and have to register within 29 days of the day that you made the supply that made your revenue go over $30,000.
2) If your revenue does not top $30,000 in one calendar quarter but does exceed $30,000 over four consecutive calendar quarters (one year), you are considered to be a small supplier over that time and for one month after those four quarter. After that you lose your small supplier status on the day you make the first supply after this period and have to register for the GST/HST within 29 days of this date.
To register for GST/HST you can visit the CRA site at:
Once you have for GST issues sorted I highly recommend using FreshBooks for your book keeping.
Let me know if anyone out there has different information or can offer additional insight.