# GST/HST question for Sole Prop



## FrugalTrader (Oct 13, 2008)

If I were to start a sole prop and expect to make more than $30k from US customers (no CAD clients), do I still need to obtain a GST number even though I do not charge GST to US clients?


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## kcowan (Jul 1, 2010)

No. The $30k is for Canadian GST qualified revenue. You might want to claim input credits though. Here is the paragraph that applies:


small-supplier said:


> •you are a sole proprietor and your total revenues from taxable supplies (before expenses) from all of your businesses are $30,000 or less in the last four consecutive calendar quarters or in any single calendar quarter;


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## Potato (Apr 3, 2009)

Oddly enough, the answer appears to be yes:

You have to register when your worldwide supplies exceed $30k.

Total revenues from taxable supplies means your worldwide revenues from your supplies of property and services that are subject to the GST/HST (*including zero-rated supplies*)

So even though you don't actually charge GST on exports (they're zero-rated), that still means you have to get a GST number and deal with the bookkeeping. The upside is you get to deduct any GST on your input supplies, even though you don't charge it to your US-based customers for your output.


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## MoneyGal (Apr 24, 2009)

I've been in this particular sweet spot before. It is a very good place to be. 

The accounting is trivial (compared to the accounting you already do, that is; the marginal work is very small) and you get an automatic rebate on all purchases for business purposes. Lucky duck!


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## FrugalTrader (Oct 13, 2008)

Question, can GST paid for expenses only be used to reduce GST collected from clients?


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## MoneyGal (Apr 24, 2009)

No. Exactly as we just discussed. You can get ITC credits without having collected any tax revenues on behalf of the government.


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## FrugalTrader (Oct 13, 2008)

Excellent, that's what I thought I was reading, but wasn't sure.


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## kcowan (Jul 1, 2010)

I continued to collect rebates even after my principal source of revenue, a Nevada-based company, had dried up and I was only collecting GST on $8k of revenue.

In fact, I closed the business in 2009 and they still wanted GST filings until I completed a form this month.


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