Once you have your business pretty well organized then you have to start to look at what are going to be your responsibilities in respect to your taxes and related to topics. This may include what your obligations are for paying GST/HST Tax Canada. If your business includes the sale of taxable products or services and this also includes if you are going to be exporting them then you may have to open a GST/HST account.
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As with always, tax regulations can be quite overwhelming and frustrating to understand. Something as simple as what a supply is often leads some new businesses to confusion. This is why in most cases no matter what the size of a business is, they will seek out a Toronto chartered accountant to assist them along with a quality bookkeeper.
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It doesn’t matter whether you are the sole owner of your business or whether you have a partnership or are an incorporated entity, you possibly could be responsible for GST/HST collection and remittance. The first thing you need to determine if any of the goods or services that you are offering are exempt. You will soon discover that there are a very few supplies that come under the exemption rule. Not only do you need to know which are taxable but you need to know the rates as well.
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You will also find that you will, come across the term called zero rate goods and services. So what you are looking at here is three different areas which are taxable, zero rated, and supplies that are exempt all together.
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Your scope of business also plays an important part as well. For example, if you are a charity then the rules are going to be different for your business, as in most cases charities are exempt. However again the rules are quite complex and your Toronto chartered accountant will be able to give you specific instructions.
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If you have a very basic business that isn’t too complicated then of course it helps that to keep the GST/ HST more manageable. However, many times a business will work with coupons and gift certificates which creates a price reduction and this can cause some confusion as to how to judge the rate for the GST/HST.
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To get your business started off right call us here at 416-398-1700 and let us figure out where you stand with your GST/HST obligations. Plus, we can tell you about our bookkeeping services that will help you stay organized with your business year round, which makes it a whole lot easier come tax time.
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