If you don’t, the government can hit you with heavy penalties.
In the first case, a woman sent a cheque for what she thought she owed.
As of July 01, 2010, much of Canada has now harmonized their provincial sales tax with GST to create the harmonized sales tax (HST).
This rate is 13% in Newfoundland, New Brunswick and Ontario, 12% in British Columbia and 15% in Nova Scotia.
(Read the complete Small Supplier definition.) Note that provincial sales taxes or proceeds from the sale of capital property are not included in the threshold amount.
Documentation such as copies of the sales journal, sales or service contracts or the earliest 3 to 5 invoices are generally sufficient for this purpose. CRA noted that agents at the applicable Regional Correspondence Centre will have scanned the documentation that was sent in into a searchable database, and that if the request was denied because this documentation was insufficient, “taxpayers can resubmit the request and the appropriate proof to backdate the registration.” Neal Armstrong.
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.
He tells me that his accountant has advised him that he does not have to pay me GST on the first ,000.
He said he will only pay me on the remainder after the ,000.