What income Tax Form do I use for my business?
Should I charge HST, how do I get an HST number?
Most businesses that operate in Ontario and have sales (revenues), totaling more than $30,000 over 4 consecutive quarters must register for and charge HST. If your total annual sales are less than or equal to $30,000, you are considered to be a small supplier and are not required to register and charge HST (including International sales). Depending on the nature of your business you may still choose to register as you will be able to claim input tax credits (ITCs) to recover the GST/HST you pay or owe on your business purchases. You may also find that some clients may only do business with businesses registered for HST.
When you register for HST you are given a unique Business Number (BN). If you have not obtained a BN, you do not charge HST. Once you have registered you have to remit at the required intervals even if you have zero sales.
For further information, visit the CRA web site or call +1(800)959-5525
Do I need to charge my International customers sales tax or HST?
If you sell goods or services to customers outside of Canada, you are not required to collect GST/HST or PST, provided they take delivery of the goods or services outside of Canada. The service must be wholly used outside of Canada. If non-resident customers, such as tourists, make purchases within your province or territory, they are required to pay the GST/HST and PST. In some cases, they may be eligible to receive a GST/HST rebate.
What taxes do I charge for out of province sales?
When you sell and ship or deliver taxable goods and services to out-of-province/territory customers, the sales tax that applies in your customer’s province or territory is generally applicable.
How do I file HST to Canada Revenue Agency (CRA)?
Starting a new business? Watch videos that can help you understand the basics, from GST/HST to filing your returns. CRA Business Video Gallery
Do I charge HST / GST to indigenous people?
The Canada Revenue Agency (CRA) wants you to be aware of GST/HST requirements that apply to you as an Indian, an Indian band, and band-empowered entity, under the Indian Act. We recognize that many indigenous people in Canada prefer not to describe themselves as Indians. However, the term Indian is used because it has a legal meaning in the Indian Act.
What expenses can I “write off”?
You can generally deduct business expenses – if they are incurred to produce income. If you claim expenses, you must be able to back up your claim. You do this by keeping all your business-related vouchers and receipts, and by recording all your expenses in a journal. Examples of expenses you can deduct:
- accounting/legal fees
- advertising expenses
- professional fees and dues
- license costs
- interest and bank charges
- meals and entertainment* (check rules)
- maintenance, repairs and vehicle expenses
- use of a workspace in your home
- inventory and costs of goods sold
Related information is available at the CanadaBusiness web site. See also the CRA’s ‘Business and Professional Income T2125’ tax guide. This form is attached to your Personal Income Tax Return.
Incorporations file T2 form on their fiscal year end.
