axes can be complicated, especially if you are an entrepreneur or small business owner. Businesses are have to face different filing deadlines, tax credits and payments than individuals. But the tax man will not accept confusion as an excuse during an audit.
It’s essential that you understand the taxes that apply to you, especially the goods and services tax (GST). Filing this tax incorrectly can lead to serious legal consequences.
Protect yourself by learning the basics of GST here.
What is GST?
GST is a sales tax that applies to the supply of almost all goods and services in Canada. GST may be combined with a province’s provincial sales tax to create the harmonized sales tax (HST). In other provinces and territories, the provincial sales tax (PST) or retail sales tax is applied separately.
In BC, GST is 5 per cent and PST is 7 per cent. Registering for GST is mandatory for all small businesses with gross annual revenue greater than $30,000, unless your product or service is exempt. However, if you voluntarily register, you may be reimbursed for GST that you pay out for business expenses.
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