When you work with RPI Consulting Group – whether you’re a Pharmacist, Nurse Practitioner (NP), Registered Nurse (RN), Registered Practical Nurse (RPN), Licensed Practical Nurse (LPN), or Personal Support Worker (PSW), you can easily send us your regular invoices directly through our mobile app’s Easy Bill System. However, did you know that you can also use the same system to collect HST/GST?
Am I Qualified To Collect HST/GST?
Whether you work as a sole proprietor or corporation the general rule of thumb regarding the requirements needed to register for GST/HST is that they don’t come into effect until you’re no longer a “small supplier”. This is often called the $30,000 rule. You’re no longer a small supplier when your revenue (before expenses) is more than either:
- $30,000 in a single calendar quarter (3 consecutive months), or
- $30,000 within the previous four consecutive calendar quarters (not a calendar year)
This means you’ll be required to collect and remit the sales tax to the Canada Revenue Agency on a quarterly or annual basis. As a registrant, you may also claim credits, called Input Tax Credits (ITC’s) for GST/HST paid to produce the goods and services.
How Do I Start Reporting/Tracking My GST/HST?
Once you’ve determined you are required to or voluntarily choose to, register for the GST/HST, you will need to do so with the Canada Revenue Agency. The process is quite simple and can be done completely online via the Business Registration Online (BRO) program.
Once you begin collecting GST/HST, it’s important to ensure that you’re keeping regular and detailed records. It’s not uncommon for new registrants to forget to separate those funds which can lead to headaches and financial trouble down the line;
After you have registered for the GST/HST, and begin charging and collecting it, you are required to let your customers know that GST/HST is either included in pricing or will be added separately.
What Is The Benefit?
One of the only benefits to registering for a GST/HST number is that the CRA reimburses HST on business expenses. As previously mentioned, this is referred to as Input Tax Credits (ITC), as in… you “input,” or literally write in, what you expect to be credited, or given back.
Most candidates that work with RPI collect HST/GST and will continue to benefit from this decision.
If you’d like to discuss these details further reach out to your Account Manager today!