Can I collect GST/HST without my Business number? | Small business accounts | Discussion forum

Are you referring to the H/GST number?
As soon as your business hits 30,000 in sales, I believe you MUST charge the HST/GST.
There is info about this online from the government.
As I recall, the income goes by quarters of the year. It's a little hard to follow but you can figure it out.

I guess the question is whether your customers will be willing to wait for the number.

A BN can be for income tax, import/export, HST and/or payroll deductions, each has its own distinct extension. It's the RT extension that is required in order to file a HST return to report any HST you collect. I suppose you could collect it before then from your customers and send it to CRA on a non-registered return (i.e. anybody who collects HST has to remit it, even if they've no RT account) but your customers won't be able to claim it back because they can't provide a valid RT account number until you've got one.

Non-residents who don't "carry on business" in Canada don't have to register for HST, i.e. if you're not really targeting Canadian market but just happen to make some sales here sometimes you can just opt out RT registration and not have to charge HST.

The $30K threshold refers to worldwide sales, so if you're over that when you make your first sale in Canada then as a non-resident you have to register, again only if you're c.o.b in Canada.

mapleleafman, are you considered to be c.o.b in Canada, i.e. are you required to get an RT account? Also did CRA indicate whether they would backdate the RT registration date to when you first applied?

mapleleafman, the way the $30K rule works is like this: Count your worldwide HST-taxable (if all sales had been in Canada) sales at the end of each calendar quarter (i.e. not tied to your own fiscal periods) for the last 12 month period, if they're over $30K you have to start collecting HST by the beginning of a month later, e.g. by May 1 if you're over in the year-ending March 31. But if you're under, repeat process at end of next calendar quarter, drop a quarter and add the latest one. (Unless you go over $30K in one quarter alone, in that case you have to register the day you go over.)

Based on that, if you're required to register by a certain date and you apply in time CRA will normally backdate, it's their fault for keeping you waiting. If you're not required, i.e. you're registering voluntarily before you are required to, they won't backdate.

In any event, I'd start collecting it as of the day I was required to be registered, at the latest, because they can/will assess you back to that date. I certainly wouldn't hold up my business waiting for the RT account, just send in all tax collected on your first return once you get the RT account open. Are your customers end-users or are they resuppliers that will be wanting to claim back the HST they pay you on their returns?

Your understanding about non residents and the $30K is incorrect. What normally happens is that non-residents, by the time they request a RT account from CRA, already have worldwide sales exceeding the $30K, so at that point it's moot and that's why someone told you the $30K rule doesn't apply to non-residents. But it does. See attached link which indicates non-residents must register unless they are a "small supplier", i.e. unless they are under the $30K.
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/when-register-charge.html

And, as I said, CRA's policy re backdating varies depending on whether you're registering voluntarily or because you're required to.

Your problem is that Amazon requires a BN RT account so that they can charge HST to your customers on your behalf, so I suppose if it makes Amazon happy you can give them your BN, maybe they'll assume it includes an RT account effective now. At least your customers are not going to be making claims for HST paid to you, so that's complication's not present here. Then you can just report & remit the HST collected starting now by Amazon prior to CRA giving you your RT account on your first HST return whenever it's filed.

Agreed, fbeaulie, selling through Amazon alone is not enough for non-residents to be considered to be carrying on business in Canada for HST purposes, but mapleleafman said he kept inventory in Canada so I accepted his assumption that he has enough of a presence here to be considered to be carrying on business in Canada.

Per CRA "whether a person is carrying on business in Canada is a question of fact requiring consideration of all relevant facts". In CRA publication P-051R2 under Guidelines there are 12 factors listed to consider in making this determination. As well, examples 7 - 13 are relevant for non-residents selling goods in Canada.
https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/p-051r2/p-051r2-carrying-on-business-canada.html

Agreed, P-051R2 lists the location of inventory as only 1 of the 12 factors to consider.

If not considered to be cob in Canada then no requirement for RT account for non-residents thus registration would be voluntary. Note that getting RT account or not has nothing to do with, independent of, getting RM import/export account on the BN.