GST Registration: When, Why, and How to Do It Right

Starting a business is exciting, but navigating the tax landscape can feel overwhelming. One of the first questions new entrepreneurs often ask is: Do I need to register for GST? Here's a breakdown to help you understand when it's required, why early registration can be beneficial, and how to do it properly.

When Do You Need to Register for GST?

In Canada, GST registration becomes mandatory when:

• Your business earns $30,000 or more in gross revenue over four consecutive calendar quarters.

• You provide taxable goods or services, such as consulting, digital products, or retail sales.

If you're below the threshold, you're considered a small supplier and not required to register, but that doesn’t mean you shouldn’t.

Why Voluntary Registration Can Be a Smart Move

Even if you're under the $30,000 threshold, registering early has advantages:

• Input Tax Credits (ITCs): You can claim back GST paid on business expenses like software, office supplies, and professional services.

• Professional Credibility: Clients may expect to see GST on invoices, especially in B2B settings.

• Avoiding the Rush: If you suddenly cross the threshold, you’ll already be set up and compliant.

How to Register for GST the Right Way

Here’s a simple roadmap:

1. Get a Business Number (BN): You’ll need this from the CRA before registering.

2. Register Online or by Phone: Use the CRA’s Business Registration Online portal or call 1-800-959-5525.

3. Choose Your Filing Frequency: Most small businesses file quarterly or annually.

4. Set Up Your Invoicing System: Include GST on invoices and track it separately in your bookkeeping software.

5. Stay Compliant: File returns on time and remit any GST collected.

Cash Flow Tip: Budgeting for GST Remittance

One common pitfall for new business owners is forgetting that GST collected on sales isn’t yours to keep, it’s owed to the CRA. To avoid a year-end cash crunch, set aside the GST portion of each sale in a separate savings account as you go. This simple habit ensures you’ll have the funds ready when it’s time to file and remit, and it keeps your operating cash flow clean and predictable.

Pro Tip: Use QuickBooks or Similar Software

Linking your GST registration to a cloud-based bookkeeping system like QuickBooks Online makes tracking and filing seamless. You’ll be able to:

• Automatically calculate GST on invoices

• Track ITCs

• Generate reports for filing

If you need help setting this up, I offer QuickBooks onboarding and GST registration support.

Need Help? Let’s Talk

GST doesn’t have to be a headache. Whether you’re just starting out or scaling up, I’m here to guide you through the process and make sure your business is set up for success.