total (gross) worldwide taxable revenue, including the taxable revenues
of all your associates, in the immediate preceding four consecutive
calender quarters is more than $30,000 (this includes revenue from
most zero-rated goods and services) or exceeds $30,000 in one calender
you do not have to register if your taxable revenue is $30,000 or
less you may be eligible to do so voluntarily. Generally, you cannot
register for GST if you are providing only exempt goods and services.
As a registrant you charge GST on the goods and services you provide
that are taxable at 5%. You can claim a credit, called an input
tax credit (ITC), to recover the GST you paid or owe on purchases
and expenses you use in your commercial activities.
There are generally three sections of GST that businesses fall into:
Taxed at Zero (zero-rated)
Taxed at 5%
Businesses who are exempt cannot charge GST on sales or claim GST
paid on expenses back from the government. If a business is involved
in an exempt income activity only, they are not required to register
for GST. Some examples of GST exempt activites are residential rents
and most medical services.
Taxed at Zero (zero-rated):
Businesses who are taxed at zero do not charge GST, but can claim
GST paid on expenses back from the government. Some examples of
activity that is taxed at zero include some groceries and farming
Taxed at 5%:
Businesses who are taxed at 5% both charge GST and claim GST paid
on expenses back from the government. Most businesses fall into
Businesses must calculate their net GST remittance or refund on
a periodic basis: monthly, quarterly or annually, depending on sales
volumes. The basic reporting period is the fiscal year of the business.
Businesses can choose either the calender year or their taxation
year as their fiscal period.
businesses whose total annual sales exceeds $6 million must file
a monthly return. Businesses with sales of between $1,500,000 and
$6 million must file a return every quarter and may elect to file
monthly if desired. Businesses with $1,500,000 or less in total
sales must file an annual return with quarterly installments. It
should be noted that quarterly installments are not required by
CRA where net GST remittable is less than $3,000 in total for the
year. Annual filers may also choose to file on a quarterly or monthly