Understanding Your GST_HST Obligations As A Business Owner

1. Understanding Your GST/HST Obligations As A Business Owner

2. For business owners in Surrey, whether they’re newbies to the world of entrepreneurship, or have been running successful companies for years, taxes never get any easier to understand, particularly when it comes to Harmonized Sales Tax (HST), and the Goods and Services Tax (GST). Typically referred to collectively as GST/HST, these important tax obligations are easy to misinterpret without guidance from a qualified CPA in Surrey. However, should you wish to get a basic understanding of these taxes before seeking help from a CPA to register and file your taxes, here is a short guide:

3. As a small business owner in Surrey, are you required to register for GST or HST? If your business exceeds a certain revenue threshold set out by the Canadian government, then you will be required by law to register for GST/HST. In the majority of instances, for businesses generating more than $30,000 in taxable sales in a single calendar quarter, or over a period of 4 consecutive quarters, registration for GST/HST will be mandatory. That said, there are some exceptions, such as companies providing certain financial services, or basic groceries; a tax accountant can help you ascertain whether you qualify for registration, or not.

4. Getting to grips with Input Tax Credits (ITCs) You might be pleased to know that some of the GST or HST you’ve paid on purchases that are eligible, can be recovered through something known as ITCs, or Input Tax Credits. ITCs can include such things as rent, marketing expenses and office supplies, but these tax credits may only be issued if the appropriate receipts are kept track of, and all relevant rules are followed; hiring a local tax accountant is the most effective way to determine whether these credits apply to you, and if so, to gain them.

5. Filing your GST/HST return Once you’ve registered your small business for GST/HST, you are then required to file returns to the CRA on a regular basis, which typically involves calculating GST/HST customer collections, and subtracting what (if any) ITCs you may be entitled to claim. How often you’re required to file depends on the size and revenue of your business, so it’s imperative that with a CPAs help, you understand what your specific requirements are. Should you miss a filing deadline, or make any mistakes when filing, you are likely to incur interest charges and penalty fees.

6. Hiring a tax accountant in Surrey to assist you There are just too many variables at play when it comes to business taxes – especially HST/GST – and too many chances for errors to be made, or opportunities to save money to be missed. That’s what it makes having help from a qualified tax professional, so appealing, and here’s what else they can help you with: • Developing a business structure that’s tax-efficient By choosing the right business structure from the get-go, you can maximize your deductions and minimize your GST/HST obligations.

7. Staying up-to-date with GST/HST changes With tax laws and requirements changing so often, it can be really beneficial to have a tax accountant on your side, who can guide you through every change, and ensure that you’re always compliant, and always maximizing your tax savings where possible. • Navigating complicated transactions Your GST/HST picture can become even more complex if you sell your services or products internationally, or even across provincial borders. With a tax accountant in Surrey, BC in your corner, you can navigate all of these complexities with ease.

8. GST/HST is something most business owners are unable to escape in Canada, but by hiring a tax accountant, you can make sense of your obligations, and make savings wherever possible.