Registering and submitting HST are important parts of doing business in Ontario. We have some resources, tips and tricks to help you keep HST reporting from becoming a headache.

Some tips on managing HST:

  • HST you collect is not revenue!  You are collecting and holding that money on behalf of the government.
  • If you operate a small business making $30,000 or less you are not required to register for HST, but there are advantages to doing so.  Registering your business for HST allows you to claim Input Tax Credits (ITCs) and receive a rebate for any HST you have paid on business expenses.
  • Ensure your invoices show your HST registration number.  There are also a few other things that they need to show.  Canada Revenue Agency's RC4022: General Information for GST/HST Registrants will give you the guidelines you need or try this sample invoice with HST
  • Do not claim an HST rebate (aka ITC) for any amount for which you do not have an invoice that shows the HST number of the supplier.  All those things you have to have on your invoices (see above) have to be on the invoices you wish to claim ITCs.

HST in Ontario - http://www.fin.gov.on.ca/en/tax/hst/

It is important to be aware of some of the items that have provincial exemptions from the 8% provincial portion of the HST.  Brush up on these regulations if you are selling any of the following:

  • Motor Vehicles
  • Boats and Aircraft
  • Print newspapers
  • Books
  • Children's clothing, children's footwear, car seats and car booster seats
  • Diapers for babies and children
  • Feminine hygiene products

There are also exemptions for First Nations

Other helpful articles:

The Canada Revenue Agency has a whole series of helpful videos - including one on HST