Most businesses in Ontario have to apply for HST number. For some businesses
HST registration is mandatory, while other businesses can apply
for HST voluntarily. Please select one of the options to continue:
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Step 1 - What is the HST Number
View this quick video to learn more about GST/HST Accounts.
Most persons and organizations engaged in commercial activities in Canada
who have worldwide, taxable sales of more than $30,000 over
any four or fewer consecutive calendar quarters must apply
for, register and collect the Harmonized Sales Tax (HST). All
taxi and limousine operators must register for HST, regardless
of their revenues.
What is the Federal Business Number (BN)?
The BN is issued by the Canada
Revenue Agency (CRA) and is used to unify all accounts a business may have
with the federal government. The BN is used to operate corporate income
tax, import/export accounts, payroll deductions and GST/HST among others.
When should I apply for the Federal Business Number
(BN)?
Registration
should take place after the company has been registered. We can assist
you with both, the business registration and the HST registration at the
same time.
General Information about HST
The HST applies to most transactions from
manufacturing to marketing and sales. Businesses and organizations registered
for the HST are referred to as registrants. In general, a harmonized sales
tax rate of 13% applies to most goods and services. The HST is not charged
on the following items:
Basic groceries
Prescription drugs
Some medical devices
Municipal public transit
Health and education services
Legal aid
Most financial services
Child care
Tutoring
Music lessons
Residential rents
Businesses do not collect the provincial portion (eight per cent) of the
HST for:
Qualified prepared food and beverages sold for a total
of $4 and under
Print newspapers
Children's clothing and footwear
Children's car seats and car booster seats
Diapers
Feminine hygiene products
Books (including audio books)
HST registrants who provide taxable goods or services have to charge and
collect the HST on their sales. If the HST collected is greater than the
HST paid or payable, the difference is sent to the CRA. If the HST collected
is less than the HST paid or payable, a refund can be claimed.
Step 2 - Do I need to apply for HST number
Do I need to apply for HST (Harmonized Sales Tax)? While
it is not mandatory for most businesses to register and collect
HST until 29 days following the single calendar quarter or
four consecutive calendar quarters in which they first exceed
worldwide sales of $30,000, we generally recommend that any
business register as soon as possible.
Three reasons to apply and register:
1. Unless you are an HST registrant you cannot
claim HST input tax credits (HST paid on business expenditures). If you
are an HST registrant and your input tax credits exceed HST collected on
sales, you may claim a refund of the excess from Canada Revenue Agency.
If you're not a registrant the HST paid on expenses is included as part
of the expense when computing net income.
2. Not being registered for HST
tells everyone that you are running a truly small business.
(Your sales are below $30,000 per year) If your customers are other businesses,
they expect to pay HST.
3. Companies that are required to register for
HST must remit the HST tax to Canada Revenue Agency - even
if it has not been collected from the customer. By registering for HST
upon starting your business you will eliminate the possibility of inadvertently
surpassing the $30,000 threshold and being exposed to penalties and interest
charges for noncompliance
Step 3 - Information required to apply for HST Number
Registration for the HST number is done by completing an application
form that is then delivered directly to the appropriate
government department.
Once your application
is approved you would receive a letter via mail confirming
your registration.
To apply for HST number in Ontario, you will need to provide:
Legal name and address of the Incorporated business
or if it is a sole-proprietorship/partnership,
then your full legal name
Description of the business activity
Your full name as listed on the SIN Card
Home address
Telephone number
Social Insurance Number
Date of Birth
Estimate of annual revenues from business activities.
If you have a partner, the same information would be required
for your partner.
Step 4 - How to apply for HST number
We can easily assist you with HST registration.
You can apply online using the link at the top or the bottom
of this page. If you are wondering why you should let us help
you with registration, the answer is simple.
You do not have to take any time from your busy schedule
to do the registration.
If you are located in a small town, there is no need to travel, just
order online.
We have the expertise to complete the registration in the way that
best suits your needs.
We work for you, not the government.
For a small fee of $39.95 we will do all the necessary work for you.
We can help you with the next step - HST report preparation.
Alternatively, you can always visit your local Canada Revenue Agency office and
complete the registration form. Please make sure that you fully understand
the questions on the registration form and answer them correctly. It is quite
difficult to change certain information once it is recorded. (You may have
to wait for up to one year). Also, be prepared for delays due to the workload.
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Step 5 - Cost of HST Registration
Our fee for registering HST number is $39.95 plus applicable taxes.
Registration never expires, unless you cancel it, so you register
only once for the entire life of the business.
Apply For HST Number Now
Congratulations! You are now ready to register for HST. Simply select
the link below to be redirected to the application
form.
