Register for VAT (GST) in Canada
Canada, known for its diverse and robust economy, imposes a Value Added Tax (VAT) system, known as the Goods and Services Tax (GST) and Harmonized Sales Tax (HST).
About J&P
Trusted by thousands of businesses, we specialise in Cross-border VAT Solutions, UK Business Support and Taxation & Accounting Services, and provide other services including global IP & Trademarks and Cross-Border Supply Chain solutions. This allows to offer a one-stop service to ecommerce businesses.
Registration Requirements
Who Needs to Register for Canadian GST
Canadian Businesses: Businesses operating in Canada with annual worldwide taxable supplies exceeding the threshold must register for GST/HST.
Foreign Businesses: Foreign businesses making taxable supplies in Canada that meet the registration threshold must also register.
Registration Threshold
Foreign individuals operating a business in Canada may be required to register for GST/HST if their worldwide taxable supplies exceed $30,000 CAD in a calendar quarter or over four consecutive calendar quarters.
Registration is mandatory once this threshold is met.
Advantages of Registering for Canadian GST
Tax Credit Benefits
Registration enables businesses to claim input tax credits, reducing the overall tax liability.
Credibility and Professionalism
Registration adds a level of credibility to your business, showing that you are a legitimate and trustworthy entity.
Compliance with Legal Requirements
Registration ensures that your business operates in accordance with Canadian tax laws, avoiding potential penalties.
Ease of Doing Business
It simplifies the tax collection and reporting process, reducing administrative burdens.
Improved Cash Flow
Businesses can collect GST from customers, helping with cash flow management.
VAT Standard Rates
VAT in Canada is made up of GST and HST. The standard rate for GST is 5%, while the rate for HST varies by province:
| Province | GST (%) | HST (%) | PST (%) | Combined Rate (%) |
|---|---|---|---|---|
| Alberta | 5% | – | – | 5% |
| British Columbia | 5% | – | 7% | 12% |
| Manitoba | 5% | – | 7% | 12% |
| New Brunswick | 5% | 10% | – | 15% |
| Newfoundland & Labrador | 5% | 10% | – | 15% |
| Nova Scotia | 5% | 10% | – | 15% |
| Northwest Territories | 5% | – | – | 5% |
| Nunavut | 5% | – | – | 5% |
| Ontario | 5% | – | 8% | 13% |
| Prince Edward Island | 5% | – | 10% | 15% |
| Quebec | 5% | – | 9.975% | 14.975% |
| Saskatchewan | 5% | – | 6% | 11% |
| Yukon | 5% | – | – | 5% |
Our Services
Our globally team is here to assist you with all matters related to Canadian VAT (GST).
Our tax experts are dedicated to bolstering your global business.
Step |
Canadian GST Application Process |
Our Supports |
|---|---|---|
| 1. | Prepare Documents: Gather required documents and information, such as business certificates, tax records, contact details, etc. | We will provide you with a comprehensive checklist of required materials to ensure thorough preparation. |
| 2. | Complete Application: Fill out the GST registration application form and submit it to the Canada Revenue Agency (CRA). | Our experts will assist you in correctly filling out the application, ensuring accuracy. |
| 3. | Await Approval: Wait for approval from the CRA for your registration application. | We will track the progress of your application and provide real-time updates. |
| 4. | Commence Tax Collection: Once you have your GST number, you’ll need to start collecting GST and reporting it to the tax authorities. | We will guide you on how to collect the tax and assist in preparing and submitting GST returns. |
| 5. | Tax Compliance: Adhere to Canadian tax laws, including timely reporting and remittance. | We will ensure your business remains tax-compliant, avoiding potential fines. |
