Being self-employed I have a lot of questions about taxes, such as when and how should I charge GST/HST? Most small businesses will start as a “Small Supplier” and have no need to charge GST/HST. There are two scenarios which may effect your small supplier status and you will have to charge GST/HST:
- If you are lucky enough to make more than $30,000 in sales before expenses in one calendar quarter. You will have to collect GST/HST on the supply that made your revenue go over $30,000. You must register within 29 days of of producing the supply that made your revenue exceed $30,000.
- If your revenue does not reach $30,000 in one quarter but does exceed $30,000 over four consecutive quarters. You are a small supplier over this time and for one month after those four quarter. You’ll lose your small supplier status on the day you make the first supply after this period. You will have to register for the GST/HST within 29 days of this date.
Once you have your GST status determined, I recommend more involved bookkeeping software. When I started I used FreshBooks and it served my needs well. Since incorporating and my bookkeeping getting more involved I switched to Quickbooks for your bookkeeping.
How do I register for a GST/HST number?
The Government of Canada has a great resource, Register for a GST/HST account which provides direction on how to register online, by form or with a phone call to 1-800-959-5525. If you call be prepared with your business number, certain program accounts, and answer details from the form.