Getting Hst Number In New Brunswick

If you're a freelancer, self-employed, sole proprietor, or small business owner in New Brunswick, you'll need an HST number to start charging HST. HST, or Harmonized Sales Tax, is a combination of the federal Goods and Services Tax (GST) and the provincial sales tax (PST). In New Brunswick, the HST rate is 15%, with 10% being the provincial sales tax rate and 5% being the federal sales tax rate. To register for an HST number, you'll need to provide basic information such as your name, date of birth, social insurance number, and business details. You can register online, by mail or fax, or by telephone. It's recommended to register as soon as possible, but you are required to register once your annual gross revenue exceeds $30,000.

Who needs an HST number in New Brunswick?

If you are a new resident moving to New Brunswick, you will need to get an HST number. The process is relatively straightforward, but it can be confusing as there is no single source of information. The HST number is required for tax purposes, as New Brunswick charges a Harmonized Sales Tax (HST) of 15% on most goods and services. This is a combination of a 10% provincial sales tax and a 5% federal goods and services tax (GST).

The HST is administered by the Canada Revenue Agency (CRA), and businesses or individuals that are registered with the CRA for GST/HST purposes are known as registrants. These can include truckers, plumbers, and car dealers. To become a registrant, you will need to collect and submit all the required documents to the CRA, including proof of address and employment.

The HST has certain exemptions and rebates, including for registered First Nations peoples for products and services bought and used on reserves. There are also exemptions for certain goods and services, such as basic groceries, prescription drugs, and feminine hygiene products.

It is important to note that documentation from other provinces or U.S. states will not be accepted for obtaining an HST number in New Brunswick.

When to register for an HST number

If you are a freelancer, self-employed, sole proprietor, or small business owner in New Brunswick, you will need to register for an HST number when your income exceeds $30,000 in a calendar year. This threshold only applies to your freelance income and does not include money earned from a regular job. You then have 29 days to register for an HST number.

You can also voluntarily apply for an HST number at any time. However, once you have registered, you are required to start charging HST on all your invoices. If you provide ride-sharing services, you must register for an HST number before you start operating.

The HST number is a formal number that is required before you can start charging HST. The HST (Harmonized Sales Tax) is a consumption tax in Canada, which combines the federal Goods and Services Tax (GST) and the regional Provincial Sales Tax (PST) into a single value-added tax. The HST rate in New Brunswick is 15%, composed of a federal GST of 5% and a provincial tax of 10%.

How to register for an HST number

The Harmonized Sales Tax (HST) is a federal sales tax imposed in provinces and territories of Canada. It includes the Goods and Services Tax (GST) and the provincial sales tax (PST). In New Brunswick, the HST is 15%, with the GST at 5% and the PST at 10%.

If you are a freelancer, self-employed, or a small business owner in New Brunswick, you will need to register for an HST number once your annual revenue exceeds $30,000. You then have 29 days to register. However, you can also voluntarily apply for an HST number at any time.

To register, you will need to provide basic information such as your name, date of birth, social insurance number, personal postal code, business name, business number, and mailing address. You will also need to provide the effective date of registration, which is typically when you pass $30,000 in income in a calendar year. You will also need to provide the fiscal year for GST/HST purposes and your total annual revenue.

There are several ways to register for an HST number:

• Online via the CRA Business Registration Online page
• By mail or fax (fill out form RC1 and send it to your nearest tax services office)
• By telephone (call 1-800-959-5525)

If you are a resident of Quebec, you will need to go through Revenu Québec instead. You can obtain your tax number online or by calling 1-800-567-4692.

Once you have registered, you will need to start charging HST on all your invoices. It is important to keep detailed records of all the HST you have collected and paid, as you will need to include this information when you file your taxes.

What to do after getting an HST number

Once you have your HST number, there are a few things you need to do. Firstly, you can start charging your Canadian customers tax. The amount of tax you charge depends on the province in which your business operates. For example, if you are based in New Brunswick, you will charge a 15% HST rate. If your client is based in a different province, you will need to charge the rate of tax applicable in that province.

You must include your HST number on your invoice, as your clients will require it. There is no need to feel awkward about charging your clients tax—any taxes they pay will be offset by any they collect, so it won't cost them anything extra.

It is also worth noting that GST/HST applies even if you don't sell taxable goods. For example, if you are a freelance graphic artist, you will still need to charge GST/HST once you are registered.

Any clients outside of Canada are considered zero-rated for tax purposes, regardless of the type of business or commercial activities. You still need to declare this income, but you do not need to charge tax on it. When you file your taxes, there will be separate sections for domestic and international income.

As soon as you start collecting GST/HST, you need to put that money aside, as it will need to be paid back later. It is recommended to use a high-interest savings account for this.

You will also need to keep detailed records of all the GST/HST you have collected and paid. You can do this manually with a spreadsheet, or you can use software. If you have any international clients, you will need to make a note of this, as it will be relevant when you file your taxes. Keep all of these records for at least six years in case you are audited.

When you file your taxes, you will file your GST/HST return at the same time. If you have collected more GST/HST than you have paid, you will owe the CRA GST/HST. This is known as input tax credit. If the amount you owe is less than $3,000, you can just pay it before the deadline. If the amount you owe is more than $3,000, the CRA will put you on quarterly payments. You can pay your GST/HST through your bank or via the CRA website.

What to do with collected HST

Once you've registered for a GST/HST number and started collecting tax from your Canadian customers, there are a few things you need to do:

• Set the money aside: Put the collected GST/HST in a separate high-interest savings account so that you can accrue some interest on it.
• Keep detailed records: Maintain records of all the GST/HST you've collected and paid. You can do this manually with a spreadsheet or use accounting software. Keep these records for at least six years in case you are audited by the CRA.
• File your taxes: When filing your income taxes, you will also file your GST/HST return at the same time. If you've collected more GST/HST than you've paid, you will owe the CRA GST/HST, known as input tax credits. If the amount you owe is less than $3,000, you can pay it before the deadline. If the amount exceeds $3,000, the CRA will put you on quarterly calendar payments. You can pay through your bank or via the CRA website.
• Claim any applicable tax credits: Depending on your situation, you may qualify for additional tax credits offered by the province of New Brunswick, such as the Low-Income Tax Reduction or the Seniors' Home Renovation Tax Credit.
• Stay on top of your bookkeeping: Ensure that you are organised and consistent with your record-keeping to make filing your taxes easier.

Frequently asked questions