If registration is required, how to register? Is registration good for business or not? If there is no need to register, will there be a lot more things to do? So what's the best way to deal with it? See what the accountant says.
- HST is sales tax, and the HST account is naturally used to collect and declare income tax.
As a boss, your primary goal is to make a profit. However, when your company’s annual income exceeds 30,000, you need to collect HST sales tax from buyers and use your HST account to transfer every transaction you collect. HST is reported to CRA. Of course, HST can also generate tax refunds. To give a simple and boring example, if you set up a purchasing agency, your main business in Canada every year is shopping, and you pay a large amount of HST to other merchants, which will be refunded to you by the CRA when you declare.
- When should HST be filed every year?
HST can be filed by month, quarter, or year. Except for the rigid requirements imposed by the government on individual large taxpayers, under normal circumstances, companies can choose on their own. We recommend that you refer to the company's operating conditions and business types. For example, for the purchasing agency mentioned just now, we recommend that you submit monthly reports to get your tax refund as soon as possible.
Finally, don’t forget that you must apply to the CRA for an HST account opening invitation within 30 days after receiving the business number. Once you receive the invitation, the account can be approved on the same day. But if the impressively efficient CRA has not heard from you more than 20 days after your application, you can call directly to ask for help.