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Posted on March 7, 2013

Starting a New Business? Think you need an HST number? Not so fast!

Written by aptax | @AvnerPolatsek

A small supplier is not required to register for HST. You are considered a small supplier if your total revenues (before expenses) from all of your businesses were $30,000 or less in the last four consecutive calendar quarters. If your revenues reached $30,000, but the revenues for each particular calendar quarter are below $30,000, then you have until one month after the quarter that put you over the $30,000 threshold to start collecting HST.

Example:
You started a new business in January 2011, and during the first three quarters you had sales of $8,000 for each quarter, for a total of $24,000. In the fourth quarter your sales were $20,000. Even though you crossed the $30,000 threshold, you are not required to collect HST until February of 2012.

However, if you have revenues of $30,000 in one particular calendar quarter, then you are required to collect HST on the sale that pushed you over the $30,000 threshold. You must register within 29 days following that sale.