You called the CRA, they gave you an HST/GST number, you feel like a grown-up! But you don’t really get what you’re supposed to do with this number besides collect taxes on behalf of the gov’. How does that even work? Especially since you only decided to get an HST/GST number in like, April.
Are you supposed to backtrack and get HST/GST from all your clients since January? What if people don’t pay? What does HST/GST even stand for and who made this stupid accronym?
Why did you even sign up for this really long number? What use is it to you? Why did you even start a business? You should never have quit your job! What made you think you could deal with this? Just go under you covers and cry and wish the world would disappear because lyfe is so haaaaaard.
Let’s just focus on tackling the first question:
What happens what you register for HST/GST in the middle of year?
No worries! Start collecting HST/GST only when you get your number–> no matter when in the year that falls. When you file your yearly HST/GST return, you’re going to want to give the gov’ all the HST/GST you’ve collected starting from your registration date to Dec 31 of that tax year.
Since registering also entitles you to get back all HST/GST from your business expenses, the same deal applies: You get refunded the HST/GST you’ve spent starting from your registration date.
It’s a two-way street folks.
The rest of your HST/GST questions will be answered in SOLE PROP SCHOOL plus much more! (like everything you ever wanted to know, ever, about how to run your own small biz)