Many new business owners are unsure when they have to register for GST. Here is a simple overview for Manitoba businesses. Always confirm the current rules with the CRA, because thresholds and rates can change.
The small supplier rule
If your total taxable sales (worldwide, including associates) stay at or under $30,000 over four consecutive calendar quarters, you are generally considered a small supplier and are not required to register for GST/HST. Once you pass that threshold, you generally must register and start collecting the tax.
Registering voluntarily
You can register even when you are under the threshold. The main benefit is claiming input tax credits on GST you pay for business purchases. The trade-off is that you must charge GST and file returns. For businesses that sell mainly to other businesses, registering early often makes sense.
Manitoba is different from HST provinces
Manitoba charges the federal GST (not HST). The provincial retail sales tax (RST) is a separate tax administered by Manitoba Finance, with its own registration and returns. Many businesses need to deal with both, so do not assume that registering for one covers the other.
Questions to ask yourself
- Are my taxable sales approaching $30,000 in any four consecutive quarters?
- Do I sell mostly to other businesses that would want to see GST on invoices?
- Do I have large purchases where claiming input tax credits would help?
- Do I sell goods or services that Manitoba RST applies to?
Not sure where you stand? We prepare GST and Manitoba RST returns and can help you register correctly. Ask us for a free consultation.
General information only. This article is not tax, legal or financial advice for your situation. Rules, rates and deadlines change, so confirm current details with the Canada Revenue Agency or a qualified professional before acting.