Taxes

1) Determine whether or not you need a Vendor Permit (PST)

In general, if you are selling a product you must charge the Provincial Sales Tax, if you are selling a service you don't. However, there are lots of grey areas so it is important to determine if your product or service is taxable. Pick-up a copy of the guide Do You Need A Vendor Permit? To get more specific details, write or call:

Ministry of Revenue, Retail Saless Tax
1600 Champlain Avenue
Whitby, Ontario L1N 9B2
(905) 432-3332 or 1-800-668-5810
Fax: (905) 435-3535

You can register for you Vender's Permit at this location.

You can also register by phone at: 1-800-668-5810

Back to Top

2) Determine whether you should 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 7%. 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:

1) 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.

2) If you don't charge the GST, you can't get back the GST you paid out on your purchases (Input Tax Credit).

3) 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.

4) 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.

From the Business Advisory Centre - Northumberland, obtain the booklet The Business Number And Your Revenue Canada accounts. It will give a simple explanation of how the BN works and some of the basics on each of the accounts it covers.

If you need more information, contact:

Mailing Address:

Revenue Canada Excise, GST
78 Richmond Street West
Oshawa, Ontario
General Inquires: 1-800-959-5525 (National toll-free #)
Fax: (416) 973-5126

Nearest Offices to Register in Person:

Revenue Canada Excise, GST
78 Richmond Street West
Oshawa, Ontario
Please note: This is a counter-service location only. No phone # is available.

Revenue Canada Excise, GST
5th Floor, 185 King Street West
Peterborough, Ontario K9J 8M3
Fax: (705) 876-6422
(Attention: Business Windows)

Revenue Canada Excise, GST
11 Station Street
Belleville, Ontario K8N 2S3
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

Note: When registering in person or by phone, please ensure that you have your Social Insurance Number (S.I.N.) on you.

Back to Top