Two Canadian provinces have just adopted a combined HST tax instead of the standard PST and GST that we used to have. It will take effect next July. My question is for breeders in provinces that already have HST combined tax is, do you have to charge any tax if your sales are under $30,000 per year? Currently we are exempt from having to register for and charge GST if our sales are under $30,000 per year and only need to charge PST on puppy sales. I am wondering if it is manditory for breeders from provinces that have HST to charge this sales tax on all puppies or if it only applies to breeders selling more than $30,000 per year. Can you opt not to charge any tax or do you have to charge HST by law regardless of your sales? TIA.
All it takes is three litters here on the West Coast to earn around $30,000 per year. That of course is gross earnings!! Only see a small % if any after all the cost$$$$
I have been involved with Labradors for many years. I registered as a small business in Canada, when it was the thing to do, around 1988. I have since then kept pretty good books, submitted my info to Revenue Canada. I too, was under the impression that if I grossed less than $30,000., I would be exempt from submitting GST on puppy sales. Wrong..... They contacted me, were kind, as they only went back so many years and fined me almost $4,000.00. Revenue Canada explained to me that GST is to be paid on each and every puppy sold, whether you are a registered small business or not. They are not sure where we breeders get the $30,000.00 number, so you might want to look into what our tax people have to say@! This was a few years ago~ although, I continue to send in GST on each puppy sold.
I don't understand why Revenue Canada would tell you that. They are the ones who told me I was NOT required to collect GST on puppy sales because with revenue under $30,000 per year I am considered a "small supplier"...
In Ontario you do not have to charge the GST( good and service tax) of the sale of a puppy,( if you are not registered and gross under 30,000) however, you do need to charge the PST( Provinvial sales tax) as everything is PST in Ontario. In Jan 2010 they (revenue Canada) is suppose to introduce back the HST( Harmonized tax, which is a blend ) but this is not finalized yet.But if you do collect the GST and have or not have a number and submitt this in, there is a form ( just like the pst collection form for rebates to your business) that can be filled out. In other words if you collect the tax then you need to submitt it to the governement.
Generally, you do not have to register for GST/HST if your worldwide revenues are $30,000 or less as we consider you a small supplier. However, you can register voluntarily.
You may want to do so for the following reasons:
you want to claim input tax credits (ITCs) to recover the GST/HST you pay or owe on your business purchases;
you are starting your business activities and you want to register before your total worldwide revenues of taxable goods and services exceed $30,000; or
your clients may only do business with businesses registered for GST/HST.
If you decide to register voluntarily:
you have to charge, collect, and remit GST/HST on your sales of taxable goods and services. You will also have to file GST/HST returns on a regular basis; and
you have to stay registered for at least one year before you can cancel your registration (unless you stop your commercial activities).
Note
If you choose not to register, you cannot charge GST/HST to your customers and the GST/HST you pay on your business purchases becomes a cost for which you cannot claim ITCs.
It is always best to consult with a tax accountant in the province you live as, there are different rules for each province with HSt, gst, pst, and any other tax the Canadian Government decides to impose..
Also if you charge tax to a puppy going out of country , there is a form ( USA people) can get at Canadian Customs or through their tax office to get the tax back.( Exemption tax form for out of country tax). Check with your tax office as I am not sure the amount they get to claim for a rebate back.
Thanks for the great info but I am still so confused. Does this mean once the harmonized tax comes into effect (HST) a breeder will be able to sell puppies without ANY tax if they are considered a "small supplier"? If they don't have to register for GST then they wouldn't have to register for HST either right? So what happens to what used to be a manditory collection of PST? Are we able to sell without charging that now since it "technically" won't exist anymore?
