GST/PST Information
Determine whether or not you need a Vendor Permit (PST)
When determining if you need a Vendor Permit it is important to determine if your product or service is taxable. Generally, if you are selling a product the 8% provincial sales tax is applied. However, if you are providing a service you must contact the Ontario Ministry of Revenue as certain services are taxable in Ontario.
Ontario Ministry of Revenue Tax Office, 590 Rossland Road, Whitby, ON L1N 9G5
Fax: 905-436-4315 Tel: 905-432-3332.
You can register for you Vendor Permit at this location, on-line while registering your business name, or by calling 1-800-668-5810.
Should you register for the Goods & Services Tax (GST)
If your gross revenue (total sales before deducting expenses) will total more than $30,000 in any twelve month period, then you must register for the GST.
Most goods and services are taxed at the rate of 5%. However, some goods and services, such as basic groceries, prescription drugs, and goods and services for export are taxable at 0%: these are zero rated goods and services. If you think your good or service may be zero rate taxable or even tax exempt, it is a good idea to verify with Revenue Canada before making the assumption.
If your gross revenue will be less than $30,000 per year then you can voluntarily register for and charge the GST. When making the decision to do so consider the following:
• Will it be an accounting hassle? For some people, particularly those on a manual bookkeeping system, accounting for the GST means another two columns to balance.
• If you don't charge the GST, you can't get back the GST you paid out on your purchases (Input Tax Credit).
• Is it important to your business to appear successful? Not charging the GST will tell the whole world that you don't make $30,000 a year.
• What are your customers use to? If you are in an industry where the customers are use to paying the GST, they may become suspicious if you don't.
If you need more information, contact nearest offices:
Revenue Canada Excise, GST, 78 Richmond Street W., Oshawa, ON
General Inquires (toll-free): 1-800-959-5525
Fax: 416-973-5126 (Attention: Business Windows)
Revenue Canada Excise, GST, 5th Floor, 185 King Street W., Peterborough, ON K9J 8M3
Fax: 705-876-6422 (Attention: Business Windows)
Revenue Canada Excise, GST, 11 Station Street, Belleville, ON K8N 2S3
General Inquiries (toll-free): 1-800-959-5525 (National toll-free #)
Fax: 613-969-7845 (Attention: Business Windows)
To register for the GST (Business Number) by phone call:
1-800-959-5525 and press * to reach a customer service representative.
Note: When registering in person or by phone, please ensure that you have your Social Insurance Number (S.I.N.) available.
