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Do I need a federal business number?

Expert: Michael Fromstein

Tyrell asked:

If I am not collecting GST do I need a federal business number?

Michael Fromstein answered:

Depends on who is asking the question.

If it is an individual, you do not need to charge GST if your annual gross sales are under $30,000 (you may elect to register if you wish. Service businesses will almost never benefit by electing). If you do not need to register for GST, you will file your tax return using your social insurance number and don't need a business number from CRA, unless you have payroll.

If you are a corporation, you will need a business number whether or not you have enough sales to require charging GST.

Editor's note: the rules for when you must collect the GST are a bit complex. For example, if you have gross revenues over $30,000 in any four consecutive calendar quarter you much register for and pay the GST. Be sure to read our article, Demystifying the GST, for futher information.

About the author

Michael Fromstein is a tax specialist with Integrated Professional Specialist Services.

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