GST/HST registration
GST/HST registration is the process by which a business obtains a GST/HST account from the Canada Revenue Agency. Under section 240 of the Excise Tax Act, a person who makes taxable supplies in Canada in the course of a commercial activity must register, subject to the exceptions in that section, such as small suppliers.
A buyer meets registration when the business it is buying will operate under a new owner or a new entity. Section 240(1) of the Excise Tax Act says every person who makes a taxable supply in Canada in the course of a commercial activity engaged in by the person in Canada is required to be registered, except where the section provides otherwise. The CRA says that, once registered, you charge and remit the GST/HST on taxable supplies and may be eligible to claim input tax credits on related purchases.
What to check or ask
- Whether the buyer already holds an account or needs its own, and whether it falls within a small supplier exception
- Whether the seller will keep, change or close its account after closing
- How a business number and account are set up; the CRA points to its Business Registration Online service
Whether a buyer needs its own account is covered in do I need to register for GST/HST after buying a business. See also the small supplier threshold.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of Canada (Department of Justice)GovernmentExcise Tax Act, R.S.C. 1985, c. E-15
- 02Canada Revenue AgencyGovernmentGeneral Information for GST/HST Registrants (RC4022): coin-operated machines
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