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[Fwd: Re: For the Canadians...do I have to charge GST?]
Subject:[Fwd: Re: For the Canadians...do I have to charge GST?] From:John Bartol <johnbartol -at- shaw -dot- ca> To:techwr-l -at- lists -dot- techwr-l -dot- com Date:Thu, 10 Apr 2008 13:22:44 -0700
As Carter mentioned, you have to collect GST if you are going to charge
more than 30K for the year.
Here's the short list o' points:
1) To charge GST, you need a GST registration number. Call CCRA (Canada
Customs and Revenue Agency) to get one.
2) When you register for GST, you are automatically set up with the
regular method of accounting, unless you opt for the quick method of
accounting. In a nutshell: regular method requires that you track all
the GST you spend for eligible supplies/expenses, then remit the
difference between that and what you collect to the government. With the
quick method, you simply remit a percentage of the amount that you
collect -- the amount you hold back is to cover *your* GST costs
(without calculating them). If you're not going to be spending huge
amounts of money on eligible supplies, you actually come out ahead using
the quick method.
3) Clients will usually want you to charge GST -- it makes their
bookkeeping more manageable. They're used to paying it anyway -- they
use the regular accounting method, so any GST they pay you is deducted
from the amount *they* remit to the government at year end.
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