How and When Should I Register for a GST Number?

Understanding when and how to register for a GST number is essential for any business operating in Canada. The Goods and Services Tax (GST) is a federal tax applied to most goods and services sold in the country. If your business earns more than $30,000 in gross revenue in a single calendar quarter or over four consecutive quarters, you must register for a GST number.

To register, visit the Canada Revenue Agency (CRA) website, where you can complete the registration online, by mail, or through a representative. When registering, you’ll need to provide your business number (if you have one), information about your business structure, and your estimated annual revenue.

It’s advisable to register as soon as you anticipate exceeding the $30,000 threshold to avoid penalties. Once registered, you must charge GST on applicable sales and file regular GST returns to remit the collected tax to the CRA.

Additionally, being registered for GST allows you to claim input tax credits for GST paid on business-related purchases, helping to reduce your overall tax burden. Consulting with a tax professional can help ensure compliance and maximize your tax efficiency.