Registering Your Business for Sales Tax

In Canada, there are two different kinds of sales taxes, a goods and services tax or GST and a provincial sales tax or PST.

Some provinces (Ontario, New Brunswick, Newfoundland, Nova Scotia, and PEI) have harmonized their PST with the GST and charge HST (Harmonized Sales Tax). British Columbia, Saskatchewan, Manitoba, and Quebec have not harmonized their PST & GST so it’s two separate taxes. 

You do not have to register for the GST/HST until your sales are over $30,000. However, if you are serious about being in business or have to buy lots of equipment or other goods before starting your business, then register as soon as you have your business registered. This also goes if your sales are mostly business to business. Remember that the HST is just the GST with the PST added onto it; it’s the same tax and is remitted along with any GST you charged.

PST is a tough one as every province has different registration requirements, and on what items they charge PST. Definitely check into the province where your business is located and see if you need to be charging the PST. 

British Columbia and Manitoba require anyone selling into those provinces to register for the PST if you sell regularly into that province. Saskatchewan suggests you register, however, doesn’t require it. Quebec only requires you to register if you have an address there, an employee, or operations, such as production or marketing activities. 

To learn more about registering and charging sales tax visit https://canadabusiness.ca/government/taxes-gst-hst/federal-tax-information/overview-of-charging-and-collecting-sales-tax/