Goods and Services Tax/Harmonized Sales Tax (GST/HST)
Generally, you must register for GST/HST in Canada if your sales of taxable supplies in Canada exceed $30,000 in four consecutive quarters. You can also register voluntarily for GST/HST even if your sales have not exceeded the threshold.
If you are self-employed, you can call CRA to register for a GST/HST program account. CRA will give you a nine-digit business number with the extension “RT0001”. If you are incorporated, and once you register for GST/HST, you just need to use your nine-digit business number and replace the extension “RC0001” to “RT0001”.
Once you are registered for GST/HST, you must charge GST/HST on all your taxable supplies and mention the GST/HST number on all your invoices to your customer.
Your supplier charges you GST/HST if the supplier is registered for the GST/HST. The supplier must have a GST/HST number if he/she is registered for GST/HST with CRA. The supplier must state the GST/HST number on all invoices to the customer. Sometime you may want to validate the GST/HST number of your supplier.
Sometime your customer can also present you a GST/HST exemption certificate. In this case it is your responsibility to very the exemption document and validate the GST/HST Number.