Ontario HST Registration
What is the Harmonized Sales Tax (HST)?
The HST is a value-added tax and is composed of the federal GST ( 5% ) and a provincial component of 8%. The HST is applied to the same base of goods and services as the federal GST base. This means the 13% HST is applied to all goods and services taxable under the federal Excise Tax Act.
The HST is administered by the federal government through the Canada Revenue Agency (CRA). As a result, registrants (businesses or individuals registered to collect the HST on taxable sales) collect one sales tax and remit and report to one government agency.
The Ontario HST rate is 13% and is composed of a federal component of 5% (GST) and provincial component of 8%.
Who collects HST and what is a Registrant?
Businesses or individuals that are registered with Canada Revenue Agency for purposes of collecting the GST/HST are registrants (i.e. truckers, plumbers, car dealers).
You have to register for GST/HST if you are in one of the following situations:
You are an operator of taxi or limousine services (regardless of your revenues).
Your worldwide revenues (and those of your associates) from taxable goods and services are more than $30,000 in your last four consecutive calendar quarters or in one single calendar quarter.
If you are a public service body (charity, non-profit organization, municipality, public college, university, school authority, or hospital authority), this limit is $50,000. Special rules also apply to charities and public institutions.
You are a non-resident who enters Canada to charge admission directly (the admissions are not made by a resident promoter or ticket agent) to audiences at activities or events in Canada. This rule does not apply if the admissions relate to a convention where at least 75% of the attendees are non-residents of Canada.
You solicit orders in Canada for prescribed goods to be sent to Canada by mail or courier, and your worldwide taxable sales (and those of your associates) are more than $30,000 over the past four consecutive calendar quarters or in a single calendar quarter ($50,000 if you are a public service body). Prescribed goods include printed materials, such as books, newspapers, periodicals, and magazines, and an audio recording that relates to those publications and that accompanies the publications when they are sent to Canada.
Generally, you do not have to register for GST/HST if your worldwide revenues are $30,000 or less ($50,000 for public service bodies). If you do not exceed these limits, you are considered a small supplier. However, you can register voluntarily. You may want to do so for the following reasons:
You want to claim input tax credits to recover the GST/HST you pay or owe on your business purchases.
You are starting your business activities and you want to register before your total worldwide revenues of taxable goods and services exceed $30,000 or $50,000.
Your clients may do business only with registered businesses.
If you decide to register voluntarily, you have to charge, collect, and remit GST/HST on your sales of goods and services that are taxable at 5% or 134%. You will also have to file GST/HST returns on a regular basis