You may be aware that if your self-employment earnings are less than $30,000 in four consecutive calendar quarters (i.e., in a year’s time) you don’t have to register for the GST or HST.
However there are some situations where you might choose to register, even if you don’t have to.
Registering for the GST-HST because your industry requires it
Some industries, such as filmmaking, consulting for banks, or contractors (e.g. plumbers, electricians) require GST-HST registration for the individual to be considered for the funding, grant or job.
Registering for the GST-HST because you want to keep your revenue private
Canadian businesses earning over $30,000 per year must register for the GST-HST. That means not being registered can send a message to your potential clients that you’re a small supplier. That may be something you choose not to publicize.
Registering for the GST-HST because it makes financial sense
Along with the requirement to collect GST-HST on sales and remit returns to Canada Revenue Agency (CRA), GST-HST registration offers a money-saving benefit: the ability to claim back any GST-HST you spend on your business. It’s a mathematical fact that GST-HST registrants always end up with a little more in their pockets than their non-registered peers. In some cases, registration can even mean getting regular refunds of GST-HST – something non-registrants can never have.
Is it time for you to register for the GST-HST? Are you considering registering even if you technically don’t have to?