There is often confusion around GST/HST. Many small business owners don’t know when they should register for it, what method they should use or when to file. In this blog post I will attempt to provide some clarity on this topic.
Let’s start with some basics. GST/HST or Harmonized Sales Tax is the harmonization of Provincial Sales Tax (PST) and Goods and Services Tax (GST). In Ontario the harmonized rate is 13%. This is the tax that is applied to most goods and services that you purchase in Ontario. The exception to this is zero-rated and exempt supplies. In addition to paying HST on goods and services, you are also required to collect HST once your revenue exceeds $30,000.