I found myself in a difficult situation. The rest of the provinces (non-participating, and having a PST) each have their own rules. Sorry…forgot to ask, could I just not register since I won’t be doing any more freelance work and just not claim the GST for any of my business expenses? Be aware, however, that if you start doing other work as a self-employed person, that income must be combined with the UberEats income to determine whether or not you reach the $30,000 threshold. I was careless not to take a closer look before)I was also given an HST amount. I’m receiving a fixed hourly salary for fixed number of hours worked per day thus my income is almost the same on the monthly basis with no chances for “loss” and really I would not call it self-employed. There are no exceptions to this. Because all revenue is OUTSIDE Canada, I do not charge HST. So I only collect %5 gst/hst from them. Next year when you file your GST/HST return, you’ll remit that GST/HST, minus any amounts of GST/HST you spent on your business. With luck you’ll have set aside more than you need for tax, and you can keep the extra for yourself . Hire someone once, consider it an investment in your own education, and then you can take the job back next year. For the procedures you must follow if you sell or transfer, or plan to sell or transfer taxable Canadian property (such as real estate, business property, or unlisted shares of a Canadian corporation), see Disposing of or acquiring certain Canadian property. I have been searching high and low on whether online courses will need to collect GST/PST in Vancouver… does it matter if I run an online class for children or adults? That should scare the agent into sending you up the line to someone with some experience. What steps do you recommend we initially take we are thinking of incorporating. You are a non-resident for tax purposes if you: If you lived outside Canada during the tax year and you are a government employee, a member of the Canadian Forces or their overseas school staff, or working under a Global Affairs Canada assistance program, see Government employees outside Canada for the rules that apply to you. YES NO. Hi Rosalyn. However, these returns are most likely to result in a refund for you, since the GST/HST you collected is $0 and you may have spent GST/HST on business expenses that you are now entitled to get back. For example, if you make a major $15,000 sale in December and another in January, you have just crossed the threshold, even if you don’t expect to make that much money for the rest of the calendar year. December and January fall into a single 12-month period, so it’s time to register. In your case, remember that residential rent, i.e., for your home office, has no GST/HST; but if you’re paying commercial rent, e.g. Any income on which you have paid Employment Insurance (EI) premiums can trigger EI earnings, regardless of your GST/HST registration status. Hi Lizzy. Personal Tax Advisors began in 2005 providing Canadian income tax preparation services. You can get a refund. The only exception would be if you are offering music lessons to children. The snow-shovelling-partnership T2125 and my furniture-assembly T2125. Don’t apologize; these are great questions! However, here is the information I can provide, starting with your last question first: yes, you have to incorporate first. Also when will we receive all the HST back? Once you are married, you must include your spouse. Which brings me to the next step, I am now 8 months into the job and likely to earn above the 30K threshold before the 12 month-mark. Hi there, have a small business in trucking. If you receive only income from employment or business use the Income Tax Package for the province or territory where you earn the income along with Guide T4058, Non-Residents and Income Tax. As a non-resident of Canada, you pay tax on income you receive from sources in Canada. Hi, I worked as an independent contractor for a company in the states until the pandemic hit. Hi Sunny, I can’t really recommend this, as it is not correct. The Canadian income tax year is from January 1 to December 31. If you’re not self-employed, i.e., if you’re considered to be an employee, you don’t have to register regardless of your income. So, this past year I made 40k – and haven’t gotten a gst number (I know I am horrible). Regarding your PST question: If you are selling goods, your PST obligations depend on the province(s) in which you will be making sales. I have no opportunity to charge HST back as I only have 1 company that I work for. However, be aware that even once you’re registered, you still don’t charge non-Canadian customers GST/HST. You hold onto that GST/HST you collected for the time being. If you’re self-employed, freelance, or run any kind of business in Canada, you’ve probably heard that you have to register for the HST/GST once you make more than $30,000. Remember that the amount of GST/HST you charge depends on where your students are located, not where you are located. Anyways my business will be under 30k. (My percentage of the partnership is 50%) In 2019 the gross income for the business was $28,000. Then you claim back any HST you spent on your business expenses. I have kept track of expenses combined! I will be paid weekly and no taxes will be taken off. Great article, especially for novice entrepreneurs! As of 2019, a taxpayer does not pay gift tax until they have given away more than $11.4 million in their lifetime. As for the older number, you’d need to check in with CRA to see if they’re still waiting for anything regarding that account. This was a one-off since a hardwood forest is harvested once in a generation. But I have registered a gst/hst account because I do make more than 30,000 a year. Income from marketable securities (see below). Is this correct? However if it’s been more than 90 days you’ll just have to hang in there and continue to be registered — along with all the charging-and-filing obligations that entails — for one year. Hello, You can fax your return to the Tax Centre applicable to your country of residence. It can get very confusing, especially if you’re a one-person operation.). I have a permanent job and also run a small business. I don’t know how soon I will hit that mark, but should I already register for HST now? During the year, she received interest income from her bank account in England and business income from a permanent establishment in Canada. If I make over 30,000 do I have to pay HST on it over and above the HST charged on the sale of the house. But I don’t think I understand what’s happening here, either. • Your gross income (meaning, before deducting business expenses) from freelance or self-employment. Hi Adnan. It’s true! If you receive only other types of taxable Canadian-source income (such as scholarships, fellowships, bursaries, or research grants, capital gains, or from a business with no permanent establishment in Canada), use the Income Tax and Benefit Package for Non-Residents and Deemed Residents of Canada. In this situation, you could file more than one Canadian tax return in a tax year: The type of Canadian income you receive during the tax year determines which income tax package you should use. Next Level Tax Preparation means someone who understands the specifics of your situation. Contact Personal Tax Advisors for more information on what we can do for you or to book a free phone consultation. Hi Will. etc.) And then you get to claim back any GST/HST on expenses that you paid out after that registration date. Nonresidents Filing Tax Returns in the U.S. You don’t pay the $3,900. The more accurate thing to say is that the government doesn’t come after you right away. You can reach them at 1-800-959-8287. GST/HST isn’t something you (as a business owner) pay; it’s something you collect from your customers, and then remit to the government. For example, if you’re in BC you would treat the $11,000 as $10,476 plus 5% GST, which totals about $11,000. Depending on the tax, Texas taxpayers may be required to electronically report (file) and/or pay based on the amount reported and paid in the preceding state fiscal year (September 1 to August 31). When filing my GST/HST, I treat it all as one business (combine the incomes and expenses) especially since they are so closely related. Now I have started my own business, based in Canada, and I’m wondering if my income generated from being a contractor to a USA company counts towards the 30k threshold? From the Canada Revenue Agency’s point of view there is no one answer to this; it all depends on the specific details of your business and your role. That said, there can be a conflict between how the payer sees you (e.g., as a self-employed contractor) and how CRA thinks you should be seen (e.g., as an employee). Unexpected payment to an individual (see below). If we don’t anticipate making $30k this year even though we are incorporated, is it mandatory to make a GST number or is sole proprietor and corporations follow the same guidelines? But at this moment, it’s the payer (your employer or client, depending on how they see themselves) who determines whether you’re self-employed or not by the way that they handle your pay. Hi Gail. If you want to collect GST/HST, or if you’re billing over $30,000 and legally have to collect it, you must first register for the GST/HST by calling the Canada Revenue Agency at 1-800-959-5525. No gigs? YES NO. It’s fine unless the customer is also GST/HST registered, in which case you might have to revise the invoice so they don’t try to claim back the $23 as an input tax credit (when it really isn’t one). Until that happens, you go with whatever the payer is doing. For more information, see the Canada Revenue Agency's Non-resident tax calculator or contact the Canada Revenue Agency. YES NO. I plan to run a writing and speaking class online but I’m not sure if I should register for GST/PST should I go over $30,000? I will be reaching the 30k threshold soon and I’m just looking ahead. How soon as this is alot of money. Thanks! 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