If you are going to start a business in Canada, you must have an HST number to be in line with Canada Revenue Agency (CRA) requirements. Knowing how to get an HST number ensures you can legally charge and remit the Harmonized Sales Tax (HST). This article gives you the step-by-step procedure on how to obtain an HST number in Canada, who it is for, and why it is advantageous.
If you’re handling small business registration in Ontario or navigating other tax obligations like T4 box 85 or rent deductions, having the right information is crucial.
What is an HST number in Canada?
An HST number is a unique number the CRA issues to businesses that need to collect and remit HST. Businesses located in provinces with HST, such as Ontario and Nova Scotia, employ an HST number. If your business generates over $30,000 per year in revenue, your company must register for an HST number.
Though your income is below the threshold, you can opt in to claim input tax credits on business costs. Efficient tax handling, like processing business rental expenses, is the secret to seamless day-to-day operations.
Who must register for an HST Number?
Any business earning more than $30,000 annually is required to register for an HST number. Sole proprietorships, partnerships, and corporations qualify. Businesses that undergo small business registration in Ontario need to make this registration a priority for compliance.
Voluntary registration also works in favor of smaller revenue businesses, as it supports tax credits and credibility. Compliance with HST is no less important than understanding T4 summaries or rent deductions when filing for taxes properly.
Step-by-Step Guide: How to Get an HST Number in Canada
Step 1: Verify Your Eligibility
If you earn over $30,000, you need to register for an HST number. Preparing for future growth is also a valid reason to pre-register. It is just as vital as maintaining adequate T4 reporting or being aware of rental business expenses for tax efficiency.
Step 2: Gather Information Required
To register for an HST number, you need:
- Business name and location
- Sole proprietorship firm, partnership, or company
- Social Insurance Number (for individual proprietors)
- Yearly estimated revenue
Giving correct information prevents delays, such as ensuring your T4 box 85 records are right.
Step 3: Online Application for GST Number
The easiest way of Online registration for GST numbers in Canada is through the CRA’s Business Registration Online (BRO) portal:
1. Visit the CRA website and select “Business Registration Online.”
2. Choose “Register for a GST/HST account.”
3. Give your company details and apply.
Web registration is the quickest option, just like using a computer aids in capturing business expenditures or viewing your T4 slip information.
Step 4: Confirm and Use Your HST Number
Once it is approved, your HST number will be in the format of 12345 6789 RT0001. You will need to utilize this number for bills and HST return filing. Utilize the GST number search tool, where necessary to verify your registration.
Handling Your HST Number
Once you register, you will have to charge and remit HST on taxable sales. Proper record-keeping helps with compliance and tax audits. For companies handling Ontario small business registration, keeping your HST number up to date helps with legal compliance.
How to Find Your GST Number in Canada
If you’ve lost your HST number, retrieve it by:
- 1. Signing in to your CRA My Business Account.
- 2. Reaching the CRA Business Enquiries line.
- 3. Using the GST number lookup.
Keeping your HST number in line is as important as proper documentation on your T4 slips or handling rent deductions.
Common Mistakes to Prevent
If you’re applying for an HST number, avoid these errors:
- Delaying Registration: Late registration can attract penalties.
- Supplying Inaccurate Information: Inaccurate information results in processing delays.
- Failure to Charge HST: Once you’re registered, you have to charge and pay HST.
Accurate registration, such as handling T4 summaries or rental business expenditures, is essential for financial openness.
Final Thoughts
Canadian businesses must know how to get an HST number. Proper registration not only results in legal compliance but also enables businesses to claim tax credits. By doing all of this, you can register and maintain your HST number successfully. For more help, small business registration services in Ontario can assist you with and walk you through managing related tax obligations, such as rent deductions.