REGISTRANT
Must
collect 7% GST on the sale of all taxable goods
and services supplied to all provinces with
the exception of New Brunswick, Nova Scotia
or Newfoundland or collect 15% HST on sales
destined or supplied to the provinces of New
Brunswick, Nova Scotia or Newfoundland.
Advantages
- Enjoy
a tax credit or rebate of tax paid on the
purchase of taxable services, or the purchase
or importation of taxable goods
- Easier
for Canadian customer to take ITC (Input
Tax Credit)
- Able
to recover GST paid on sample shipments
- Quicker
recovery of tax paid on rejected or damaged
goods
- Easier
paper flow
Disadvantages
- Accounting
system must be established to:
- Identify
tax collected on sales
- Identify
ITC’s
- File
monthly/quarterly reports
- Surety
bond may need to be obtained, premium paid
- Minimum
two year filing requirement
- Subject
to audit by Canada Customs and Revenue Agency
(CCRA) (Excise Department)
Becoming
Registered – Things to Know
- Application
form to the CCRA may need to be accompanied
by security
- Security
may be in the form of a surety bond, which
may be obtained through PBB Global Logistics
- Minimum
security amount of $5,000.00 if bond required
- A
registrant is required to file a GST return:
|
Assigned
Reporting Periods and Options
|
|
Annual
Taxable
Sales
and Revenues
|
Assigned
Reporting Period
|
Optional
Reporting Period
|
|
More
than $6,000,000
|
Monthly
|
Nil
|
|
More
than $500,000
To
$6,000,000
|
Quarterly
|
Monthly
|
|
$500,000
or less
|
Annual
|
Monthly,
Quarterly
|
|
