April 7, 2020
How to Register for GST HST PST across Canada

How to Register for GST HST PST across Canada


in this video I am going to show you how to
register for the GST HST and PST across Canada. This information is taking
from our online course Your Business Set up Blueprint, learn how to start a
business in Canada. It is available on our website at cspoitras.com. Once you’ve
decided that you can register for a tax account there are some decisions you
have to make. You’ll have to decide if you’re going to use a regular method or
the quick method and which reporting period you’re going to use. So let’s look
at that. The regular method is when you actually record your revenues and your
expenses before tax. So for instance if you’re in Ontario and you
buy stamps, $10 before tax and $1.30 for the tax. In Quebec the taxes are
separate, we have GST and PST and in Alberta you have GST only. Now one of the
advantages of using the regular method is if you end up paying more taxes on
your expenses than the taxes you collected from your customers you end up
with the tax credit so if you have a lot of expenses, the regular method is the
one for you. The quick method you just put everything together so tax is
included so the stamps from Ontario $11.30 Quebec $11:48 and Alberta $10.50 now
there are some people that cannot use the quick method and they are charitable
organizations cannot and there are some certain profit or not-for-profit
organizations that cannot also you can find out on the link that I’ll give you
in a minute. businesses who offer legal services
accountants actuaries businesses who offer financial or fiscal services and
businesses who do bookkeeping or prepare tax returns. Now how the quick method
works, is you’re going to charge the appropriate tax rate for your province
and then you are only going to give back a percentage to the government. So the rate
is based on your province or territory. If you’re not in Quebec you go to
this document and if you’re in Quebec you go to
this one. Now the advantage to that is you put all your totals together and at
the end of the year you’re not going to give as much back. So if I’m in Ontario
and I have 13% that I’m collecting for my customers, at the end of the year all
I only have to give, for services I only have to give 8.8% back and plus there’s
another credit for the first 30,000 so you can see how it makes a difference at
the end of the year if you don’t have a lot of expenses. Keep in mind that if you
do have expenses and you have a lot of them then it will be better to use the
regular method. Now for the reporting periods, the annual reporting period
sales are 1.5 million or less and you do your tax report by April 30th of the
following year. Quarterly reporting, sales are less than six million and you
do your returns four times a year and you usually have a month after the
quarter ends, for the self-employed, the quarters go from January to December
so the first quarter is January February March, so you would have until April 30th
to do your tax report. Now which one is better?
annual or quarterly, well it’s really a personal decision. First of all,
you really need to put that money separately, the taxes that you collect
from your clients should not be in the same account that you use every day. You need to put that separate because that money doesn’t belong to you you’re
going to have to give it back to the government, at least a portion of it back
to the government and you can’t be late because there are penalties. So if you’re
good at putting money aside and you’ll be able to have the money when
the year is over then I recommend to do it once a year because that way you only
do a tax report once a year less paperwork. If not so good at that,
then you really need to consider doing it quarterly because that way every
quarter you’ll have to give some money back and it doesn’t accumulate
throughout the year. Another disadvantage of doing quarterly is if you don’t do it
yourself you have to pay your accountant four times to do it so think
about all that when you decide what reporting period you want to use and
then the monthly well it is for sales that are more than six
million dollars and for those ones the tax reports are done by the end of the
following month. Now if we look at how to register, now these provinces only
for the GST only and that’s for Alberta Nunavut Northwest Territories in the
Yukon and you can go to the Revenue Canada website how to register for GST
HST and you’re going to follow the instructions, so for these provinces you are
only going to charge the 5% HST now it’s, Ontario Prince Edward Island New
Brunswick Nova Scotia Newfoundland and Labrador you go to the same place but
once you register for your province it will be the HST which for Ontario is
13% and the others here are 15%. For the rest of the provinces there’s
two registrations that have to be done. In British Columbia you have to go to
Revenue Canada for the GST HST and then depending on the types of services or
products that you sell you may or may not need to register for the PST. It’s
like that for all of the next provinces so it’s best to go to the website and
there’s your website for British Columbia and then find out if you need
to or not and then you can also do it if you do want to and you need to you can
do it online you just follow these topics here and they’ll take to you
where you need to be to register for the PST for BC. If you were in Manitoba
again GST at the same place and if you need to register for PST first you need
to check with your province and if you do have to you have to complete a form
MBT – rl1. In Saskatchewan same thing for the GST and in for PST go to the
provincial website and you’ll have to complete a vendor permits slash permit
application and to find that form if you follow these links here it will take you
to where that form is you complete the form and again follow the instructions.
And if you’re in Quebec you will have to do Revenue Canada for the GST and revenu Quebec for the PST and that one you will have to complete a form LM 1. Now
all this information comes from our Business Set Up Blueprint in various
modules so the first module is actually about the
a self-employed sole proprietor choosing business name how to register your
business now the taxes this is how to register your business in all of the
provinces and then you have the bank accounts incorporation do you need to
consider it or not and and then at the end there’s a checklist so this is what
the check that looks like so what this is structure what I have my business
will I be a sole proprietor partnership corporation and it goes like that
everything we covered in module 1 you have a questionnaire here but that is
for you to keep track of where you’re at and what you need to do for your
business. In module 2 we’ll look at the types of revenues income tax pension
contributions installment payments special employment insurance benefit for
entrepreneurs, now this is really interesting this is something that if
you can’t work you can actually get some benefits list and that’s good to look
into and this module you get the tax table for each province so whatever your
province is you look it up and then it will tell you how much income tax you
need to set aside depending on what your revenue is going to be. In module 3 it’s
the gst/hst PST that we just did we also talk about the terms why and when to
register, there’s the tax registration planning table how to register the
options we just talked about in more details how to charge the GST what to do
with the taxes how to prepare your tax report there’s a checklist here also to
help you now you have to complete this do I need my do I need a GST HST account
well when will I register do I need a PST account so you have all that you
keep track of it until you’re done at your business setup. And this is the
spreadsheet that comes with the module also it helps you if you want to wait
before you register it helps you track the $30,000 and you also get and this is
a quick method workbook so if you choose a quick method this workbook will help
you calculate how much you need to give back so this is pretty cool and there I
don’t think there’s very very many people that have that available anywhere
at least I haven’t seen it and you also get an an invoice a plain invoice for
you to use it’s ready you just put all your information in
and the tax rate is there for each province and if it changes you can
easily change it that cell is not locked so you can change that and then reuse it
all you want and add your logo and everything’s you don’t know if you don’t
have an invoice you can start with this one and module four is all the expenses
you can think of all the things you need to know about what is deductible and what is
not deductible it’s quite a bit there’s two pages and then there’s a home office
expense lot of people ask about that and then vehicle expense and we show you how
to do the calculations for these two also and then their last module is the
bookkeeping and we do simple bookkeeping so you can do what you need to do we
introduce you to the cost of goods sold and we talk about what is
an audit how to prepare for one and what’s the audit process so if you’re
interested visit our website at cspoitras.com and if you have any questions go to
contact tab and send us an email we’ll be happy to hear from you and they give
you the answers that you need thank you very much

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