Question 1

is my GST based on invoices or on money received

Accepted Answer

For most businesses, GST/HST is reported on an invoice basis rather than a money received basis, and that catches people who assume it follows the cash or accrual choice they use for income tax.

Question 2

is the GST I collect mine to keep

Accepted Answer

Short version: no. The GST/HST you add to a sale is not your money and not your income. You are collecting it on the government's behalf. Why it is a liability, not revenue. When you charge GST/HST, the Canada Revenue Agency treats that tax as held in trust: you collect it from your customer, hold…

Question 3

how often do I file GST

Accepted Answer

How often you file GST/HST is generally assigned by the CRA based on your annual taxable supplies, and you can usually elect to file more often than the minimum you are assigned.

Question 4

do I charge GST on my Shopify sales

Accepted Answer

Whether you charge GST/HST on a Shopify order depends on two things: whether you are registered , and where your customer is .

Question 5

when do I have to register for GST

Accepted Answer

When GST/HST registration becomes mandatory turns on a status the CRA calls "small supplier", and a $30,000 line.

Question 6

is the 30000 GST threshold based on my Canadian sales only

Accepted Answer

No, and this one is expensive to get wrong.

Question 7

what do I need on a receipt to claim the GST back

Accepted Answer

To claim the GST/HST you paid on a business purchase back as an input tax credit, you need more than the amount: you need documentation that proves the tax was charged by a registered supplier.

Question 8

is the GST I pay on supplies an expense or do I get it back

Accepted Answer

If you are registered for GST/HST, the tax you pay on business purchases generally is not a plain cost: you get it back.

Question 9

how long do I have to keep my receipts and records

Accepted Answer

The general rule from the Canada Revenue Agency is six years.

Question 10

do I need to worry about QST

Accepted Answer

QST is Quebec's own sales tax, administered by Revenu Québec rather than the CRA, and it sits alongside GST rather than replacing it.

Question 11

can I throw out paper receipts after I scan them

Accepted Answer

Usually yes, but there is a standard to meet.

Question 12

what's the difference between zero-rated and exempt sales for GST

Accepted Answer

Both zero rated and exempt sales mean your customer pays no GST/HST, so from their side the two look identical.

Sales tax and GST