GST/HST for first-time filers in BC

Most businesses don't have to think about GST until their sales cross $30,000. After that, it's a registration, a return, and a set of deadlines that catch out a lot of first-year owners. Here is how it works in British Columbia.

When you have to register

You're a small supplier, and don't have to register, while your revenue from taxable supplies stays at or under $30,000 both in a single calendar quarter and over the last four consecutive calendar quarters. Once you go over, you must register.

• 01Over $30,000 across four quarters. You stay a small supplier through the end of the month after the quarter you went over, then must register.
• 02Over $30,000 in a single quarter. You stop being a small supplier immediately. Your registration takes effect on the sale that put you over, and you have 29 days to register.
• 03Taxi and ride-sharing drivers must register from their first dollar, whatever their revenue.

Register online through Business Registration Online, which adds a GST/HST account to your Business Number (or creates one).

GST and PST in B.C.

British Columbia doesn't use the HST. You charge the 5% federal GST, which you register for and file with the CRA, and, if your sales are subject to it, the separate 7% provincial PST, which is registered and filed with the Province. They are two registrations, two returns, and two sets of rules.

How often you file

The CRA assigns your reporting period based on your annual taxable supplies. You can choose to file more often than assigned.

That April 30 payment date is the one most first-time filers miss. Filing in June doesn't stop interest on a balance that was due at the end of April.

Claiming input tax credits

Input tax credits (ITCs) get back the GST you paid on business purchases. You claim them on the return for the period you made the purchase, and you have up to four years to claim one you missed.

• 01Inventory and equipment on hand when you register. New registrants may be able to claim GST paid on capital property and inventory they already have on the day they register.
• 02Keep the receipts. Every ITC needs a receipt or invoice. For purchases of $100 or more, it must show the GST charged and the supplier's GST number.
• 03Only the business portion. For things you use personally too, such as a phone or vehicle, claim only the business share.

Your first return

• 01Charge GST from your effective date of registration, not from the day your number arrives. Sales between the two are still taxable.
• 02Set the GST aside. The GST you collect isn't revenue. A separate bank account for it avoids a painful bill at filing time.
• 03File even if you owe nothing. A return is due every period, including nil returns.