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December 6, 2012

All Startup Companies Should Register for HST

Normally, companies with less than $30,000 in revenue do not have to register for HST. However, there is one benefit: Input Tax Credits (ITC). Basically Startups have to pay HST on purchases (‘Input Tax’). The CRA will give a refund (ITC) on those input taxes (HST on purchases) to any registered company. For more information: http://www.cra-arc.gc.ca/E/pub/gp/rc4022/rc4022-12-10e.pdf HST Registration checklist: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rgstrng/chcklst/menu-eng.html