Starting a new business or organization comes with its freedoms – but there are a lot of responsibilities and information that you must learn to be successful. You might have heard that you need to get a GST number and need to make a GST payment.
We outline who needs a GST number, how to register, how to track GST, how to file in Quickbooks, and make a GST payment. No matter where you are on your journey – if you’re just starting or in the middle of reconciling your year end – this article will help you understand and action everything around GST.
What is a GST Number?
First things first: a GST number is a basically your CRA Business Number followed by RT0001. For example, if your business number is 123456789, then your GST number is 123456789RT0001. (Your GST number could end in RT0002, but those are rare cases).
Having a GST number requires you to charge GST on taxable sales. At the same time, it allows you to get a refund on the GST that you pay (in the form of ITC’s).
When To Register For a GST Number
You might be unsure of when you need to register for a GST number and how it will benefit your company or organization. The short answer is that if your organization is working with $30,000 or more per year, then it’s time to register for a GST number.
However, don’t fear registering for a GST number, it comes with some benefits. GST is a smart tax because it allows you to claim GST that you have paid as “Input Tax Credits”. That means you qualify for refunds and can claim some money back.
To learn more, check out a post I wrote about when to register for a GST number.If your organization is working with $30,000/yr, it’s time to register for a GST number. Click To Tweet
How to Calculate Your GST Payment
You’re probably asking yourself, “how do I track my GST accurately?”.
Fortunately, most accounting programs are robust tax crunching machines. Each entry you make will have a field dedicated to extracting that valuable tax information. I recommend using an accounting software like Quickbooks Online to properly track your GST.
Download Quickbooks’ step-by-step guide to learn exactly how to make GST calculations work for your business.
One point you should be aware of, however, is if you make a journal entry into the GST account. This is because if you use a journal entry, the GST module won’t pick it up. You have to reverse calculate the GST so that the GST is properly accounted.
If you have this problem, contact us at Legacy Advantage and we’ll show you how to do it properly.
How to File (and Pay) your GST
Using an accounting software like Quickbooks Online is a tremendous help for tracking your GST information. Unfortunately, the software doesn’t actually “file” your GST payment for you. Instead, the software simply gives you a print out of all the information that you’ll be to file and pay.
Again, if you ever need help navigating through Quickbooks, I recommend downloading Quickbooks’ guide on filing taxes.
The easiest way to file and pay at the same time is through your online banking.
If you need additional help, contact your banker to set up your GST payment process for you. Make sure to bring along your GST number.
Still need help with your GST payment?
Feel free to contact us with any questions you may have about your GST payment – or any other step of the way. We’re always happy to help.