Do I need to get a business number before filing my return?

I make less than $30,000 in gross income. Do I need to get a business number before filing my return?

Answer

3 people found this helpful

No.  As soon as you hit $30,000 gross in any consecutive 4 QUARTERS (total of 12 consecutive months) you must apply for Business/GST number and start charging GST (or perhaps HST depending on your province) on your very next sale.  EXAMPLE:

Gross Income

Jan - Mar 31 2014  $ 5000

Apr - Jun 30 2014  $ 7500

Jul - Sep 30 2014  $ 7500

Oct - Dec 31 2014  $ 7500   TOTAL GROSS last 4 quarters = $ 27,500

JAN-MAR 31 2015  $ 7200  TOTAL GROSS last 4 quarters = $ 29,700

APR-JUN 30 2015  $ 8800  TOTAL GROSS last 4 quarters = $ 31,000

In this last quarter you hit $30,000 in sales on May 31. You must apply for Business/GST number immediately and charge GST/HST on your very next sale invoice.

Was this answer helpful? Yes No

No answers have been posted

More Actions

People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community