Re-Submitting with GST Number

[mikenaulls]

A couple months back, I received a notice from the CRA notifying me that as my small business made over the $30k threshold for GST registration in 2021 but I did not have a GST number, I would have to register for one. My bad, I made $30,300, just barely over and it didn’t click in my brain that I was over the limit.

I spoke to someone at the CRA and he registered me for a number, but noted that I had two options to clear the tax situation up. One was re-submit the previous year (or years?) taxes with the GST number, and the other option went right over my head. Again, my bad, I should have clarified.

Anyway, this week I tried calling the CRA agent I spoke to but of course he’s busy and I have not heard back.

Can anyone please tell me what I need to do now that I have a GST number? Re-submit last year’s return, or is it a certain number of years? The CRA agent did note that resubmitting would make me more susceptible to audits, so what is my other, “safer” option?

I know I’ve been a dope about this, so please go easy on me. Thanks.

[TurboTaxSusan]

I’m not sure what other way the CRA agent may have suggested, but if you need to change your 2021 return to add your GST/HST number, you can do so here: TurboTax Online 2021. Login, then click the Refile button next to the return you want to adjust. Click “Find” (magnifying glass) and search for “self”. Then select “Self-Employment” from the list and click on the “Go” button to get back to the Self-Employment section.

Yu would also need to do a GST/HST return if you haven’t already done so. You would have to fill out and submit one through the Canada Revenue Agency (CRA) website. You can read more about it on this CRA page: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-info...

If you are audited, just be sure to have all your receipts and other records ready. When the CRA does an audit they are just will double checking that what you have matches with what you have put on your tax return. You can read more about getting audited in this TurboTax article: https://turbotax.intuit.ca/tips/what-small-businesses-should-know-about-the-audit-process-6134

Please note: As of Friday, January 27, 2023, at 11:59 p.m. EST, the Canada Revenue Agency (CRA) will temporarily close all NETFILE, REFILE and EFILE transmissions. The services will resume on Monday, February 20, 2023.

[BSBNorthBay]

Hi there. 

Believe me, you are most certainly not the only one in this situation but you do have some work ahead of you to get CRA off your back and correct your tax situation.

You say that you spoke with a CRA agent and registered the GST/HST number.  Do you know if the actual GST/HST return get filed for 2021 and 2022?  The GST/HST is filed separately from your personal income tax.  It would depend on how CRA filed the return if you need to amend 2021. How many years back, depends on how many years you were over $30,000.  

Please be aware that if you have not filed your HST return you will be charged a late filing fee as well as interest.  

On the other side of things though you are able to deduct the HST that you pay on your expenses to offset the GST/HST that you charge on your sales.  So for 2022 when you calculate your expenses be sure to calculate the GST/HST that you paid on all your expenses.  

You say that this correspondence from CRA was relating to 2021; have you been collecting HST for 2022?  Once you are registered for GST/HST you have to always collect HST on your sales even if less than $30,000 in a given year.  That means that for 2022 you will have to account for GST/HST on your sales.

I know there is a lot of information in this reply.  My suggestion to you is to hire some profiessional help with this in order not to be on a bad start with CRA for your business.  Turbotax offers a service for self employed people whhere they can get live expert help and may be able to guide you further without having to pay the big fees an accountant will charge.

My final piece of advice is if in the event that you have a GST/HST return that is due and you cannot make the payment, make sure the return gets filed ontime.  That way you will avoid the larger pentalty for filing late.

Feel free to ask any additional questions.  Best of luck.