CLIENT RESOURCES – TAX NUMBERS
As a client of TheStable.ca you are required to pay the 13% Harmonized Sales Tax (HST) we are obligated to charge on all fractions of horses, monthly fees and incidentals. You must pay this tax even if you reside outside of Ontario.
By registering for a GST/HST number, you can recoup some/all of these taxes if you treat your business with TheStable.ca as a small business.
The following has been prepared by business writer Susan Ward and highlights some of the benefits of registering for a GST/HST number.
If you wish to register for a GST/HST number:
>>> download the fillable RC1 form here.
We have pre-filled some of the fields for you. Mandatory fields are marked with xxxxxx. Once completed, you will mail or fax the form to one of the tax centers listed in the link at the top of the application form.
You can also complete an online form here (unless you are a resident of Quebec or reside outside of Canada). NOTE: Americans do not need to list their social security number on the form; leave it blank.
What Is a GST Number?
The GST number is essentially a tax number assigned to your business by the Canada Revenue Agency (CRA). It’s also known as a Business Number (BN) because it’s not just used for collecting, reporting and remitting GST/HST but also for any other business your business does with the Canadian Revenue Agency (CRA).
For instance, you will use your “GST” number for your business’s corporate income tax if your business is structured as a corporation, and for your payroll deductions account if your business has employees.
You will also use your GST number (Business Number) in the course of doing business. Once you have one, you need to show your GST Number on all of your invoices.
Does Your Business Need a GST Number (Business Number)?
Most businesses do. Goods and Service Tax and Harmonized Sales Tax (GST/HST) registration is mandatory for all businesses in Canada except for those deemed small suppliers.
The Canada Revenue Agency defines a GST Small Supplier as a sole proprietor , partnership , or corporation whose total taxable revenues before expenses are $30,000 or less annually. ( Read the complete Small Supplier definition.) Note that provincial sales taxes or proceeds from the sale of capital property are not included in the threshold amount.
Note also that the Small Supplier GST registration rule doesn’t apply to all types of businesses; taxi and limousine operators, for instance, and non-resident performers who sell admissions to seminars, performances or other events, must always register for the GST.
But even if your business does qualify as a GST Small Supplier and you don’t have to, you will probably want to register for the GST anyway. If you register for the GST/HST, you can them “reclaim” the GST/HST you’ve paid on business purchases, on everything from capital property through office supplies, through GST/HST Input Tax Credits . So it’s wise to register for the GST right away when you’re starting a business so you can claim the GST/HST on the items you’re purchasing for startup. (Because of the way GST/HST reporting and filing works, you won’t be able to claim the GST/HST on these business expenses retroactively.)
How Does GST/HST in Canada Work?
Once your GST/HST registration is complete and you have your GST number (Business Number), you charge your customers and/or clients GST/HST on the taxable goods and services you supply (sell) to them. Whether you charge and collect just GST or GST and HST depends on what province your business is located in, what kinds of goods and/or services you are providing and, if your business involves shipping goods, where those goods are going.
**Ontario charges 13% HST
The GST/HST you collect is remitted to the Canada Revenue Agency by completing a GST/HST return identified with your GST number either quarterly or annually. (Remember; the CRA refers to this number as a Business Number (BN).)
When you are completing your GST/HST return, you can claim Input Tax Credits (ITCs) for the GST/HST you paid or owe “on purchases and expenses you use, consume, or supply in your commercial activities” (General Information for GST/HST Registrants, Canada Revenue Agency), in effect getting back the GST/HST you paid.