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Fraser Parry is the Economic Partnership’s in-house Small Business Counsellor.

Do I Have to Register My Small Business for G.S.T. Purposes?

If the sales of the business entity are $30,000 or more, the business must obtain a business number from Canada Revenue Agency for the purpose of G.S.T.

If your sales are under $30,000 you are not obliged to register. However, many small business owners overlook certain negative aspects of not registering.

It is a common occurrence especially in the service sectors to hear comments like, “I don’t have to charge you the G.S.T.” The small business owner believes the implication to the customer is that they can get a “deal” by dealing with them and saving the tax. What they are really saying is, “My business is so “Mickey Mouse” that I can’t even gross $30,000 a year.” It’s not a very positive image, is it?

Secondly, by not registering or participating, the small business loses their input tax credits. In other words, those who choose not to register automatically have seven per cent higher costs than their competitor who does choose to voluntarily register. Another way to evaluate this same issue is, “Who would you rather pay the tax, you or your customer?” Common sense should provide that answer.

Do you have any questions about business regulations, registrations or requirements? Please contact Fraser at 332-1820 or email parry@sarnialambton.on.ca.