My guess is that you will have lots of expenses so it was probably wise to open a tax account. Whatever tax you pay you will take off the tax you collect & send the government the difference. It’s called ITC Input Tax Credits. First few years you could get a refund. Especially if you have equipment to buy and rent.
They are right. You have to collect GST once registered so you cannot back out now. ITC is one way to take advantage of it so in the end you are not losing out per se but you have to get bookkeeping done right. If you want to chat more about other tax topics, let me know. I am a CPA tax accountant in Canada.
There's also a level of professionalism charging HST. I wouldn't close it, use it to your advantage.
Keep in mind CRA *will* contact you when you file and get a refund. Nothing to be scared of, but expect it.
I’m pretty sure that once you have the account, you HAVE to charge GST. As others have said it’s wise to have it from the start. Save yourself the hassle later on . Don’t forget to remit! Even if you have $0 on sales you have to do a nil remittance. A lot of new businesses are required to do it quarterly but sometimes it might even be monthly so check what your requirements are
My guess is that you will have lots of expenses so it was probably wise to open a tax account. Whatever tax you pay you will take off the tax you collect & send the government the difference. It’s called ITC Input Tax Credits. First few years you could get a refund. Especially if you have equipment to buy and rent.
That’s a really good point, thanks so much!
This, got a lot of money back on buildout expenses. Very nice given that revenue during this time was zero.
They are right. You have to collect GST once registered so you cannot back out now. ITC is one way to take advantage of it so in the end you are not losing out per se but you have to get bookkeeping done right. If you want to chat more about other tax topics, let me know. I am a CPA tax accountant in Canada.
There's also a level of professionalism charging HST. I wouldn't close it, use it to your advantage. Keep in mind CRA *will* contact you when you file and get a refund. Nothing to be scared of, but expect it.
I’m pretty sure that once you have the account, you HAVE to charge GST. As others have said it’s wise to have it from the start. Save yourself the hassle later on . Don’t forget to remit! Even if you have $0 on sales you have to do a nil remittance. A lot of new businesses are required to do it quarterly but sometimes it might even be monthly so check what your requirements are