How We Can Help You Understand HST for Your Small Business.

If you operate a small business in Ontario, chances are you’ve heard about HST. But understanding how it works and what your responsibilities are can be confusing when you’re starting out. Here’s what every small business owner should know about HST.

When to register for HST.

You must register once your total revenue from taxable sales exceeds $30,000 in a single calendar quarter or over four consecutive quarters. However, many businesses choose to register earlier to claim input tax credits.

Collecting HST.

Once registered, you must charge HST on most goods and services you sell. Keep clear records of what you collect.

Input tax credits (ITCs).

You can claim ITCs to recover the HST paid on expenses related to your business, such as supplies, utilities, or equipment.

Filing and remitting.

Depending on your business size, you’ll need to file HST returns monthly, quarterly, or annually. Filing on time helps you avoid penalties and interest.

Keeping records.

Maintain accurate records of all invoices, receipts, and returns for at least six years in case the CRA requests a review.

Understanding and managing HST properly keeps your business compliant and helps prevent surprises at tax time. If you need help registering, filing, or managing HST, contact Kuepfer Accounting for guidance and support.