Transcript

Host: Welcome to the segment called I’m registered. Now what?, part of the CRA’s GST/HST Information for a New Small Business video.

With me is Sarah Taylor.

Hello Sarah.

Subject matter expert: Hi Kathleen.

Host: What are my responsibilities now that I am registered for the GST/HST?

Subject matter expert: Well, as a GST/HST registrant, you are responsible for collecting the GST/HST on taxable goods and services that you sell, lease, transfer, or otherwise provide in some way, such as bartering. You hold this tax in trust until you send it to the CRA.

If you are registered for the GST, you are automatically registered for HST.

You are responsible to file GST/HST returns monthly, quarterly, or annually, depending on your revenues from taxable supplies.

You are required to remit all net tax owing with your returns and/or by instalments.

You are responsible for collecting the GST on taxable supplies of property and services (not zero-rated) that are made in a non-participating province.

You are required to collect HST at the appropriate rate for the participating province on taxable supplies of property and services (not zero-rated) that are made in a participating province.

Host: How do businesses collect and forward the GST/HST they collected to the CRA?

Subject matter expert: You are required to file a GST/HST return for each reporting period, and pay any amount owing.

Reporting periods will be explained in the segment of this video called Filing your returns and remitting the GST/HST.

Host: That makes sense. Do I have to tell my customers when I charge them the GST/HST?

Subject matter expert: You must let your customers know if the GST/HST is being applied to their purchases.

You can tell them about the tax being applied by using cash register receipts, invoices, or contracts to inform your customers or you can post signs at your place of business.

When charging the GST/HST, you have to: show that the amount paid or payable for a supply includes the GST/HST; show the amount paid or payable for the supply of goods or services and show the amount of the GST/HST payable on the supply separately; or the GST/HST rate that applies to the supply. If HST applies to the supply, show the total HST rate. Do not show the federal and provincial parts of the HST separately.

Host: What information do I have to show on an invoice?

Subject matter expert: In addition to the general rules we just described, upon request, you have to give customers who are also GST/HST registrants’ specific information on your invoices, receipts, contracts, or other business papers that you use when you supply taxable goods and services. This is important because they need this information to support their claim for input tax credits or rebates for the GST/HST you charged.

In other words, if your customers ask you for an invoice or receipt to claim an input tax credit or ITC, depending on the amount of the sale, by law you have to give them certain information.

For a complete list of what is required on an invoice, go to the CRA webpage on Invoice requirements. The link is included in the Related links for this segment.

Host: That’s very helpful. If I would like to learn more about this topic, what’s a good resource?

Subject matter expert: More information is available in the CRA Guide RC4022, General Information for GST/HST Registrants. The link is included in the Related links for this segment.

Host: Thank you Sarah.

This concludes the segment called I’m registered. Now what?, part of the CRA’s GST/HST Information for a New Small Business video.

Thank you for watching.