7 – Registration & the Practical Side of Administering GST/HST for Your Clients

🧾 How to Register & Open a GST/HST Account With the CRA
🧾 The RC1 Form & Registering for a Business Number (BN) in Canada
🧾 Example: Mandatory GST/HST Registration & Completing the RC1 Form (Step-by-Step Guide)
🧾 Voluntary GST/HST Registration & Completing the RC1 Form (Beginner-Friendly Guide)
📩 CRA Correspondence After Submitting RC1: What to Expect (GST/HST Registration Guide)
📅 GST/HST Filing Deadlines & Payment Dates in Canada (Beginner-Friendly Guide)
🛑 How to Deregister a GST/HST Account in Canada (Step-by-Step Guide)
📄 RC145 Form Guide: How to Properly Fill Out the GST/HST Deregistration Form
🧾 Closing a GST/HST Account in Canada (RC145) — What New Tax Preparers Must Know
🏢 Closing a GST/HST Account vs. Closing a Business (Sole Proprietor vs Corporation Explained)
🔁 Filing Outstanding GST/HST Returns Using the Current Year’s Access Code (Beginner Guide)

🧾 How to Register & Open a GST/HST Account With the CRA

When a business in Canada crosses the $30,000 small-supplier threshold, or voluntarily chooses to register, the next step is to open a GST/HST account with the Canada Revenue Agency (CRA). As a tax-preparer, you’ll help clients understand how this works — and sometimes even assist with registration.

This guide breaks down every method, eligibility rules, and practical tips so you always know what to do ✅

🚦 When Do You Need to Register?

Situation	Registration Required?
💰 Annual taxable revenue over $30,000	✅ Yes — mandatory
🤝 Voluntary registration (even below $30K)	✅ Allowed — to claim ITCs
📍 Selling only exempt supplies	❌ Not eligible

Note: Registration also applies to ride-share drivers (Uber, Lyft etc.) and taxi businesses — mandatory from day one, regardless of revenue.

🛠️ Ways to Register for a GST/HST Account

There are 3 CRA-approved methods to open a GST/HST account:

Method	Best For	Notes
📞 By Phone	Corporate registrations, complex cases	You answer questions from Form RC1 over the phone
✉️ By Mail / Fax	Businesses not eligible online	Submit completed Form RC1
🌐 Online (Business Registration Online)	Most sole proprietors/individuals	Fastest method, but many corporations not eligible

📞 Method 1 — Register by Phone

CRA Business Enquiries Line:
📞 1-800-959-5525

✅ Useful when:

Client has complicated structure
Corporate registration not accepted online
Non-resident situations
Client needs help answering questions

📂 Tip for Success:
Download Form RC1 (Request for a Business Number) beforehand and prepare answers.

✉️ Method 2 — Register by Mail / Fax

Use if:

CRA system won’t allow online registration
Business type not supported online
Client already has a business number and needs new GST/HST program account

📄 Required Form:
RC1 — Request for a Business Number
Fill and mail/fax to CRA processing centre.

✍️ This is your backup method — and sometimes the only option.

🌐 Method 3 — Register Online (Business Registration Online)

Fastest option — but not everyone qualifies.

To use BRO (Business Registration Online), the client must have:

✅ Valid SIN
✅ Filed a Canadian tax return previously

🚫 Who Cannot Register Online?

Restricted Case	Reason
📍 Business located in Quebec	Quebec GST/QST handled by Revenu Québec
🌎 Non-resident businesses	Must use phone/mail
🏢 Many corporations	BRO excludes many federally & provincially registered corps
👥 Already existing BN with same SIN	Must add program via phone/mail

🛑 Provincial corporation restrictions
Corporations incorporated in these provinces often cannot use online registration:

British Columbia
Manitoba
Nova Scotia
New Brunswick
Ontario
Saskatchewan
Federally incorporated companies

In practice: Online registration works most smoothly for sole proprietors.

📌 Special Scenarios

Scenario	Action
Sole proprietor, first business	✅ Can usually register online
Client owns multiple businesses	May need phone/mail depending on CRA system response
Client has no prior tax return filed	❌ Cannot use online — phone/mail required

🧠 Pro Tax-Preparer Tip

For corporations, default expectation = phone or RC1 mail-in.
BRO often rejects corporate setup — don’t waste time trying repeatedly.

🗂️ What Information You’ll Need

Prepare this info before registering:

✅ Legal & operating business name
✅ SIN (if individual proprietor)
✅ Business structure
✅ Business address & contact info
✅ Description of business activity
✅ Estimated sales
✅ GST/HST start date (effective date)

🔖 Key Form to Know

📄 RC1 — Request for a Business Number
This form covers setup for:

Business Number (BN)
GST/HST program account
Payroll account
Import/export number
Corporate program registration

Practice Tip: Print RC1 and walk through fields with clients to avoid missed info.

💡 Practical Notes Box

🧠 You’re not “creating” a GST/HST number — you’re adding a GST/HST account under the Business Number.
BN: 9-digit business identifier
GST/HST Account: BN + RT0001

Example:
Business Number: 123456789
GST/HST account: 123456789 RT0001

📝 Final Checklist for Tax Preparers

Before registering, confirm:

☑️ Business hits registration requirement OR wants voluntary registration
☑️ Client understands GST responsibilities
☑️ You collected all business details
☑️ You determined registration method
☑️ RC1 completed if mailing/faxing

✨ Bottom Line

Most sole proprietors → Register online
Most corporations & special cases → Phone or RC1 mail-in

Mastering this step builds confidence — you’re becoming the go-to GST/HST expert 💪✅

🧾 The RC1 Form & Registering for a Business Number (BN) in Canada

To open a GST/HST account, payroll account, or import/export account with the Canada Revenue Agency (CRA), businesses use Form RC1 – Request for a Business Number. As a tax preparer, understanding this form is essential — you will fill it out often for clients, especially new businesses.

This guide breaks the form down step-by-step so you know exactly what every section means ✅

🧠 What Is a Business Number (BN)?

A Business Number (BN) is a 9-digit identifier the CRA assigns to a business.
Once a BN exists, different CRA program accounts are added under it.

Program	Purpose	Format Example
RT account	GST/HST	123456789 RT0001
RP account	Payroll deductions	123456789 RP0001
RC account	Corporate income tax	123456789 RC0001
RM account	Import/Export	123456789 RM0001

✔️ RC1 is used to create the BN and add accounts like GST/HST (RT).

🧩 When You Use RC1

Scenario	Use RC1?
Business has no BN yet and needs GST/HST	✅ Yes
Business already has BN and needs GST/HST only	❌ Add RT account through CRA phone or My Business Account
Client has a corporation & can’t register online	✅ Yes
Client needs payroll or import/export number	✅ Yes

📝 Key Sections of RC1 (Explained)

Below is a beginner-friendly breakdown 👇

1️⃣ Business Type & Ownership Information

You’ll select the business structure:

👤 Sole Proprietor
👥 Partnership
🏢 Corporation
🏛️ Trust / Estate
👔 Other (e.g., joint venture)

🔑 Important Information Collected

Legal name of individual or corporation
Address
Shareholders/owners (if corporation)
Directors (corporations)
Contact person details

🟦 Tip: For most GST/HST work early in your career, you’re helping sole proprietors and small corporations.

2️⃣ Business Details

This covers where the business operates and keeps records:

Field	Meaning
Business address 📍	Where business operates
Books/records location 📚	Where documents are kept
Language 📬	English / French preference

You will also describe:

✨ Main business activity
🛍️ Primary products/services
(Up to 3 activities if multiple)

Tip for your blog audience: Encourage clients to be clear — CRA uses this to classify business activity & audit risk signals.

3️⃣ GST/HST Program Account (RT Account)

This is what most new business owners care about ✅

💡 Key Questions You’ll Answer:

Field	Meaning
Worldwide taxable supplies 🌎	Total expected annual revenue (Canada + exports)
Canadian taxable sales 🇨🇦	Sales in Canada subject to GST/HST
Reporting frequency 🗓️	Monthly / Quarterly / Annual
Effective date of registration 📅	When business starts charging GST/HST

🟧 Important Box:

Select whether revenue is ≤ $1,500,000 — this determines default filing period.

GST/HST Filing Frequency Rules (Canada)

Annual Revenue	Default Filing Frequency	Other Options
≤ $1.5M	Annual	Quarterly or Monthly
> $1.5M and ≤ $6M	Quarterly	Monthly
> $6M	Monthly	None (Monthly Only)

🎯 Effective Date Matters

This is the start date for charging GST/HST and claiming ITCs.

📌 Tip: Do not leave blank — choose a specific date based on business start or voluntary registration date.

4️⃣ Other CRA Program Accounts (Optional)

Section	Purpose
Part C	Payroll (RP) account 💼
Part D	Import/Export (RM) account 🌐
Part E	Corporation income tax (RC) — only if corporation 🏢

❗You don’t need these for GST/HST only — leave blank unless needed.

5️⃣ ✅ Final Signature

The business owner or authorized representative signs.

🔐 Keep a signed copy in your client file.

📬 After Submission — What Happens?

CRA will mail:

📦 Business Number (BN)
📑 GST/HST account confirmation (RT)
🗓️ Filing frequency & start date
💡 Instructions for first return & due dates

🟦 Tax Preparer Action:
Add reminders in your calendar for the client’s first filing date.

🧰 Pro Tax-Preparer Tips

✅ Always review business activity description — vague answers can delay registration
✅ Ask clients about future payroll or import needs — avoid extra forms later
✅ Use RC1 as a guide before phone registrations
✅ Keep digital + signed copies in your files

🟨 Note Box

🧠 For sole proprietors:
Business number is tied to personal SIN — but it is still a business BN, not your personal tax number.

🪧 Sample Client Questions to Ask

✔ What date do you want your GST/HST registration to start?
✔ Estimated revenue this year? (Canada & worldwide)
✔ Will you have employees soon? Payroll needed?
✔ Do you import/export goods or services?

🌟 Summary

The RC1 form is your gateway to CRA business accounts, especially:

BN creation
GST/HST program account setup
Payroll / Import-Export accounts (if needed)

Mastering RC1 means you’re ready to confidently help entrepreneurs launch and stay compliant ✅✨

🧾 Example: Mandatory GST/HST Registration & Completing the RC1 Form (Step-by-Step Guide)

Once a business crosses the $30,000 sales threshold in a single quarter or over four consecutive quarters, GST/HST registration becomes mandatory. As a tax-preparer, you must recognize when this happens and know how to complete the RC1 form correctly.

This guide provides a full walkthrough using a real-world-style example ✅

📌 Scenario: When Registration Becomes Mandatory

Meet Todd, a management consultant 👨‍💼.

Detail	Info
Business Type	Sole proprietor
Province	Ontario
Sales in Canada	$58,000
Sales to U.S. clients	$5,000
Total revenue	$63,000
Date he crossed $30,000	August 12
Action required	Must register & charge HST from that date

📍 Todd issued the invoice on August 12 that pushed him over $30,000 — so that date becomes his GST/HST registration effective date.

🔑 Key Rule: When a business becomes a mandatory registrant, GST/HST must be charged starting on the sale that crossed the threshold — not the next invoice.

🛠️ Filling the RC1 – Step-By-Step (Based on Todd’s Example)

Below is a breakdown of how you would complete the RC1 form for Todd.

1️⃣ Business Structure ✅

Field	Answer
Business type	❗ Individual / Sole Proprietor

Enter Todd’s personal information & business address.

TIP: Sole proprietors do not have a corporation tax account — leave corporate sections blank.

2️⃣ Business Description 🧠

Field	Entry
Main Business Activity	“Management Consulting”
Percentage	“100%”
Products/Services	Consulting services

3️⃣ GST/HST Section (RT Account) 🧮

🔸 Registration Reason

Question	Answer
Are you required to register?	✅ Yes — crossed $30K
Taxi/ride-share?	❌ No
Commercial rent activity?	❌ No
Non-resident?	❌ No

4️⃣ Revenue Estimates 📊

Field	Amount	Source
Revenue from Canada	$58,000	Ontario clients
Worldwide taxable supplies	$63,000	$58k Canada + $5k U.S.

✅ You only need reasonable estimates — CRA does not verify projections at registration stage.

5️⃣ Fiscal Year & Filing Frequency 📅

Field	Answer
Fiscal year end	December 31 (sole proprietor defaults to calendar year)
Reporting frequency	Annual (default for revenue under $1.5M)

👇 Even if filing annually, GST/HST payments may be required during the year — educate clients early.

6️⃣ Registration Effective Date 📍

Field	Entry
Effective Registration Date	August 12

This matches the invoice date where Todd crossed $30,000.

💡 This date controls when GST/HST must begin being charged and when ITCs can start being claimed.

7️⃣ Other CRA Accounts 🛑 (Skip if not needed)

Program	Action
Payroll (RP)	Leave unchecked
Import/Export (RM)	Leave unchecked
Corporate tax (RC)	❌ Not applicable

🎯 Only register accounts the client actually needs — avoid extra admin.

📬 What Happens After Filing?

CRA will mail:

✅ Business Number (BN)
✅ RT program account number
✅ Filing frequency details
✅ When first return is due

📎 Add this to your client records & calendar immediately.

📂 Pro Tips for Tax Preparers

💡 Always track revenue for clients near the $30K threshold
💡 Explain effective date rules — prevents under-collection of GST/HST
💡 Encourage clients to keep purchase receipts (ITCs begin after effective date)
💡 ⏱️ Filing annual is simpler for new sole proprietors — unless cash flow planning requires otherwise

🟦 Quick Checklist Before You Submit RC1

✅ Item	Description
⬜ Business structure identified	Sole prop/partnership/corporation
⬜ Business activity clear	1–3 activities listed
⬜ Canadian & worldwide revenue estimated	Used to determine filing activity & CRA expectations
⬜ Effective date confirmed	Same date threshold was passed
⬜ Reporting period selected	Annual / Quarterly / Monthly
⬜ Only required CRA accounts selected	Avoid unnecessary payroll/import accounts
⬜ Signed & dated	Mandatory for processing

📌 Final Word

Once you complete a few RC1s, the process becomes second nature. In small business tax work, you will do this often — confidence comes with practice 😎

🧾 Voluntary GST/HST Registration & Completing the RC1 Form (Beginner-Friendly Guide)

Voluntary GST/HST registration is a powerful tool for small business owners and tax preparers. Even if a client hasn’t reached the $30,000 small supplier threshold, they may still benefit from registering early — especially if they pay GST/HST on expenses and want to claim Input Tax Credits (ITCs).

This guide will walk you through:

✅ When voluntary registration makes sense
✅ How it works and key tax rules
✅ Step-by-step RC1 form walkthrough
✅ Example scenario
✅ Common mistakes
✅ Pro tips for tax preparers

🎯 What Is Voluntary GST/HST Registration?

Voluntary registration means a business chooses to register for GST/HST before reaching $30,000 in taxable sales.

💡 Key Insight: Voluntary registrants must charge GST/HST starting from their chosen effective date, not when they hit $30,000.

🤔 Who Should Consider Voluntary Registration?

Voluntary registration makes sense if a business:

💼 Has startup costs with GST/HST
📦 Carries inventory and wants to recover HST paid
📈 Expects to exceed $30,000 soon
🙋‍♀️ Wants to appear more established to clients
🔧 Provides services to businesses who can claim ITCs (B2B)

🚫 Not ideal for businesses selling mostly to consumers who cannot claim ITCs, like hair stylists, daycare providers, or small tutors — charging tax can make pricing less competitive.

🎁 Benefits of Voluntary Registration

Benefit	Why it matters
💵 Claim ITCs	Recover GST/HST paid on business expenses & inventory
📑 Build compliance record	Helpful for future CRA interactions
📊 Improves credibility	Many B2B clients expect to see tax on invoices
📍 You choose start date	Control timing of when tax applies

⚠️ Responsibilities & Rules

When registering voluntarily:

Requirement	Details
Charge GST/HST	From chosen registration date
File GST/HST returns	Even if no sales — must file
Claim ITCs	Only on expenses dated after registration start (special rules for inventory)
Maintain records	Keep receipts & invoices

⚠️ Important: You can’t retroactively claim ITCs before your effective date, except via special inventory rules.

👩‍💼 Example: Voluntary Registration Scenario

Meet Helen, a handmade craft seller.

Detail	Info
Sales	$25,000/year
Business type	Sole proprietor
Reason to register	Wants to claim ITCs on materials
Chosen registration date	October 1
Year-end	December 31

Helen expects strong holiday sales and buys materials with HST. Registering lets her recover HST on her expenses and start charging customers GST/HST from October 1.

📝 Filling Out RC1 — Key Sections for Voluntary Registration

RC1 Area	What to Enter
Business info	Sole proprietor details
Reason for registration	✅ Voluntary registration
Revenue estimates	Canadian taxable revenue: $25,000
World-wide revenues	$25,000 (all Canadian)
Effective date	October 1, 20XX (chosen date)
Reporting frequency	Annual (recommended for small businesses)

🟦 Checklist Tip: Always tick “Voluntary Registration” box — CRA needs this for approval.

📅 Effective Date Rules

📌 You pick the date when registering voluntarily.

From that date forward:

✅ Charge GST/HST on sales
✅ Claim ITCs on operating expenses
✅ Claim ITCs on eligible inventory (special adjustment rules)
❌ No GST/HST needs to be charged on income before this date

🧠 Pro Tips for New Tax Preparers

🧾 Track invoice dates carefully — CRA audits look for correct start date
📍 Match registration date to business cycles — e.g., before busy seasons
🗂️ Organize receipts by pre- and post-registration
👥 Educate clients about compliance to avoid penalties
📢 Inform customers before adding GST/HST

🟨 Note Box: Key Terms to Remember

Term	Meaning
Small supplier	<$30,000 in taxable revenue
Voluntary registrant	Registered before $30,000 threshold
ITC	Input Tax Credit — recover GST/HST paid
RC1	CRA form for new GST/HST registration
Effective date	First day required to charge GST/HST

❌ Common Mistakes to Avoid

Mistake	Fix
Not selecting voluntary registration	Always check the voluntary box on RC1
Thinking GST starts at $30,000	If voluntary, tax applies from chosen date
Claiming ITCs on old expenses	Only allowed post-registration (except inventory)
Choosing wrong filing frequency	Annual filing simplifies admin for small earners

✅ Quick Decision Flow

Should my client register voluntarily?

Question	Yes / No
Do they pay GST/HST on business expenses?	✅ Consider registering
Selling mostly to consumers?	❌ Registration may hurt pricing
Expecting to grow quickly?	✅ Plan early
Need business credibility?	✅ Good strategic move

🎓 Final Takeaway

Voluntary GST/HST registration is a smart planning tool — but only when used wisely.

As a tax preparer, your job is to:

🔍 Evaluate whether benefits outweigh costs
🧾 Support clients in completing RC1 accurately
📅 Choose correct effective date
🧠 Educate clients on charging GST/HST and filing returns

Mastering voluntary registration is a core skill in Canadian tax prep — and you’re building a strong foundation!

📩 CRA Correspondence After Submitting RC1: What to Expect (GST/HST Registration Guide)

Once the RC1 form is submitted and processed, the Canada Revenue Agency (CRA) will send correspondence confirming the business number (BN) and GST/HST registration details. As a tax preparer, knowing what to expect — and what to do with these documents — is essential to staying organized and supporting your clients.

This guide explains the letters you’ll receive, timelines, key details to review, and record-keeping best practices.

📨 ✅ Types of Correspondence You May Receive

After the CRA processes an RC1 application, one of the following will happen:

📄 1. Digital Confirmation (Instant for Online Applications)

If the registration is completed online, the client may receive:

A PDF confirmation letter immediately
The new Business Number (BN)
The GST/HST program account number (ending in RT0001)
The effective date of registration

🖨️ Tip: Save or print this PDF immediately — it’s crucial for records and future compliance.

📬 2. Paper Letter (If RC1 Was Mailed or Additional Review Needed)

When the RC1 is mailed, or CRA needs to manually verify information, they will mail:

GST/HST registration confirmation letter
BN and GST/HST account number (RT number)
Effective date of registration
Reporting frequency details (annual/quarterly/monthly)

📅 Timeline: Usually 1–3 weeks, but faster during non-peak periods.

❗ Sometimes: Follow-Up Questions From CRA

In some cases — especially for:

🏢 Commercial real estate transactions
🧾 Large ITC claims
🤝 Corporate structures

CRA may send a questionnaire or request for additional details.

They may ask for:

Business activity explanation
Expected revenues
Supporting documents (leases, purchase agreements, etc.)

💭 Why this happens: CRA wants to validate legitimate business activity and prevent fraudulent GST/HST refund claims.

🔎 Key Details to Review When You Receive the Letter

Item	Why It Matters
✅ Business Number (BN)	Used to identify the business with CRA
✅ GST/HST Account # (RT0001)	Confirms GST/HST account active
📅 Effective Date	Determines when to start charging/claiming tax
🗓️ Filing Frequency	Annual/quarterly/monthly — ensure correct cycle
📍 Address & Name	Ensure correct records — avoid CRA mail issues

⚠️ Effective Date Alert: This determines when the business must begin charging GST/HST and when ITCs can be claimed.

📂 Record-Keeping Best Practice for Tax Preparers

📁 Create a permanent client folder and store:

CRA registration confirmation letter
Copy of RC1 form submitted
Notes on registration date & filing frequency
CRA correspondence history (if any)

🧠 Think like an auditor — keep everything tidy and traceable.

🟦 Pro Tip Box

🛑 Never start collecting GST/HST until CRA confirms registration.
Doing so early may result in compliance issues and repayment obligations.

🟧 Tax Workflow Tip

As soon as the letter arrives:

✅ Calendar next filing date
✅ Confirm effective date with client
✅ Update bookkeeping system settings (QuickBooks, Xero, Wave, etc.)
✅ Advise client to begin applying GST/HST on invoices
✅ Start tracking ITCs only from the effective date forward

🎯 Why This Letter Matters

This CRA confirmation letter is legal proof that your client:

Is registered for GST/HST
Can collect GST/HST
Can claim ITCs
Can show proof to third parties (e.g., landlords, lawyers, vendors)

It’s essential in scenarios such as commercial leases, real estate closings, and supplier verification.

❌ Common Mistakes to Avoid

Mistake	Result
Not saving CRA letter	Hard to reference details later
Client starts charging GST/HST early	Over-collection → compliance issue
Ignoring follow-up CRA questions	Delay in registration activation
Wrong effective date planning	Missed ITCs or incorrect invoicing

🧾 Example Snapshot of Confirmation Information

Field	Example
Business Number	12345 6789
GST Account	RT0001
Effective Date	January 15, 20XX
Filing Frequency	Annual
CRA Correspondence Method	Mail / PDF

🟩 Final Checklist for Tax Preparers

✅ Save CRA confirmation letter
✅ Verify key dates and details
✅ Inform client & update accounting system
✅ Set reminders for first filing date
✅ Keep letter in permanent tax file

By managing this step correctly, you’re building strong compliance habits and protecting your client from costly mistakes.

📅 GST/HST Filing Deadlines & Payment Dates in Canada (Beginner-Friendly Guide)

Understanding when to file and pay GST/HST is essential for tax preparers and business owners. Missing deadlines means interest and penalties, so let’s make this super clear and easy. ✅

👥 Who Needs to File GST/HST?

Business Type	Filing Requirement
Sole proprietors with GST/HST account	Annual filer (default)
Corporations	Annual, quarterly, or monthly
Anyone collecting GST/HST	Must file—even if no sales or tax owing

⚠️ Even if your sales are $0, you still must file — otherwise CRA may charge penalties.

📊 GST/HST Filing Frequencies

Filing Frequency	Who Typically Uses It?
Annual	Sole proprietors, small businesses
Quarterly	Medium-sized businesses
Monthly	Larger businesses, high GST/HST collected

🧾 Annual GST/HST Filers (Sole Proprietors)

Most sole proprietors follow the calendar year (Jan 1 – Dec 31).

Task	Deadline
File GST/HST Return	June 15 of the following year
Pay GST/HST Owing	April 30 of the following year

🛑 Big Warning:
Even though the filing deadline is June 15, any balance owing must be paid by April 30 to avoid interest.

💡 Tip for tax preparers: Always aim to file and pay by April 30 if they owe money.

🏢 Corporate GST/HST Filers

Corporations can have annual, quarterly, or monthly reporting. For corporations:

Filing deadline = Payment deadline

📅 Annual Corporate Filers

Reporting Period Ends	Filing & Payment Deadline
Example: Aug 31	Nov 30 (3 months after year-end)

📆 Quarterly Filers

Deadline: Last day of the month after the quarter ends

Quarter	Filing & Payment Deadline
Jan 1 – Mar 31	April 30
Apr 1 – Jun 30	July 31
Jul 1 – Sep 30	Oct 31
Oct 1 – Dec 31	Jan 31

📅 Monthly Filers

Deadline: Last day of the month after the month ends

Period End	Filing & Payment Deadline
July 31	August 31
November 30	December 31

📨 CRA Notifications

CRA usually sends reminders, including:

✅ Filing reminders
✅ Access codes if needed
✅ Online mailbox alerts

💡 Encourage clients to enable CRA My Business Account notifications.

💰 What Happens If You File or Pay Late?

Situation	Consequence
Pay late	Interest charged daily
File late (balance owing)	Penalties + interest
File after deadline but no balance	No penalty, but unsafe habit

✅ Quick Rules to Remember

Rule	Why it matters
Annual sole prop payment due Apr 30	Avoid interest
Annual sole prop filing due Jun 15	Match personal tax filing
Corp/Quarterly/Monthly filing = payment date same day	Plan cash flow
Always file even with $0 sales	Avoid penalties

🟦 Note Box 📌

Installments may be required for businesses with higher GST/HST balances.
The goal is to avoid a large payment all at once + interest charges.

⭐ Tax-Pro Best Practices

✅ Track GST/HST deadlines in your calendar
✅ Confirm filing frequency when onboarding clients
✅ Ask clients early for bookkeeping records
✅ Submit returns early if they owe money
✅ Encourage clients to automate payments if suitable

🛠️ Workflow Tip for New Tax Preparers

If a business files quarterly or monthly, you will likely do their bookkeeping regularly as well.

For annual sole proprietors, you’ll usually file GST/HST with their income tax return.

🎯 Summary Table

Filer Type	Filing Deadline	Payment Deadline
Sole proprietor (annual)	June 15	April 30
Corporate (annual)	3 months after year-end	Same date
Quarterly	Month after quarter ends	Same date
Monthly	Month after month ends	Same date

🌟 Final Tip

The biggest mistake beginners make is thinking June 15 = payment deadline for sole proprietors.
It’s only the filing deadline — payment is due April 30!

🛑 How to Deregister a GST/HST Account in Canada (Step-by-Step Guide)

When a business closes, stops commercial activities, or returns to small-supplier status, it may need to deregister its GST/HST account with the CRA. As a tax preparer, understanding this process ensures your clients stay compliant and avoid unnecessary filings or penalties.

This guide walks you through when, why, and how to deregister — plus pro tips to avoid headaches. 🚀

❓ When Should a Business Deregister?

A business should cancel its GST/HST number if:

✅ It permanently stops operating
✅ It sells or transfers the business
✅ Gross revenue drops below $30,000 (becomes a small supplier) and chooses to stop charging GST/HST
✅ The business changes legal structure (e.g., sole prop → corporation)
✅ No longer making taxable supplies (switched to exempt activities)

⚠️ If the business expects to continue operating—even with low sales—don’t deregister unless sure. Restarting registration later requires a new account setup.

📌 Before You Deregister

You must:

☑️ File all outstanding GST/HST returns
☑️ Pay any balances owing
☑️ Be prepared to file a final GST/HST return (up to the date CRA closes the account)

If returns are outstanding, CRA will not close the account.

🛠️ How to Deregister Your GST/HST Account

There are three methods:

📞 1️⃣ Call CRA (Recommended ✅)

📍 CRA Business Enquiries Line: 1-800-959-5525

Ask to close the GST/HST account. Provide:

Business Number (BN)
Reason for deregistration
Effective date

Why this is best:
✔ Faster
✔ An agent can sometimes backdate the closure to avoid filing a partial-period (stub) return
✔ No need to mail forms

🧠 Pro Tip for Tax Preparers:
Politely explain if business activity actually ended at year-end — CRA may backdate to Dec 31 to avoid an extra short-period GST/HST return.

🧾 2️⃣ Submit Form RC145 (Mail or Fax)

If you’d rather do it in writing:

📄 Form: RC145 — Request to Close Business Number Program Accounts

You can send it via:

📬 Mail
📠 Fax

This method works but takes longer and no guarantee CRA will adjust the date for your convenience.

🖥️ 3️⃣ Online (Future Capability)

CRA has been working toward adding online deregistration in:

Represent a Client
My Business Account

🛑 As of now, this feature is limited — always confirm current CRA system options.

📅 Final GST/HST Return

When the account is closed, one last return must be filed for:

From: Start of the period
To: Deregistration date

This is called a stub-period return.

Example
Client closes Aug 15 → file return Jan 1 – Aug 15.

👀 Avoid by backdating: If CRA agrees to close as of Dec 31, you simply file the normal annual return instead of a short one.

🔥 Pro Tax-Preparer Tips

🏷️ Confirm the date business stopped operating early
🧾 Keep proof (email, closure documents) for CRA
☎️ When calling CRA, be polite — agents often help by adjusting dates
📅 Close account right after final bookkeeping to avoid missed filings
💬 Educate clients: Closing a business ≠ automatic GST/HST cancellation

🟦 Note Box 📌

If the business has assets with input tax credits claimed (ex: equipment), CRA may require self-assessment GST/HST on their fair market value at deregistration.

This is called a deemed disposition rule.

⚠️ Common Mistakes to Avoid

Mistake	Consequence
Thinking CRA closes account automatically	Returns/penalties continue
Not filing all returns first	CRA refuses to close account
Using wrong deregistration date	Extra stub-period return required
Forgetting deemed tax on assets	CRA reassessment risk
Deregistering too early	Must re-register and re-invoice clients

✅ Quick Checklist

Before requesting closure:

Required Action	Done?
All GST/HST returns filed	✅
No balance owing	✅
Final sales recorded	✅
Assets reviewed for deemed tax	✅
Client confirms business is permanently closed	✅

🎯 Summary

Key Point	Takeaway
Best way to deregister	📞 Call CRA
Form to file if mailing	📝 RC145
Must be up-to-date first	✔ Returns & payments
Backdating possible	✅ Helps avoid stub return
Final return required	📅 Up to deregistration date

📄 RC145 Form Guide: How to Properly Fill Out the GST/HST Deregistration Form

When a business stops operating or no longer needs to collect/charge GST/HST, you may need to file Form RC145 – Request to Close Business Number (BN) Program Accounts. As a tax preparer, knowing how to complete this form correctly ensures smooth account closure and avoids CRA follow-ups.

This guide explains every section of the RC145 related to closing the GST/HST (RT) account — in a beginner-friendly, practical format. ✅

🧠 What is Form RC145?

The RC145 is the official CRA form used to:

Deregister a GST/HST account (RT program)
Close other CRA program accounts if needed (like payroll RP, corporate tax RC)

For this section, we will focus on closing the RT (GST/HST) program account.

🎯 When to Use RC145

Use this form if:

✔ The business has permanently closed
✔ The business is no longer over the $30,000 small-supplier threshold
✔ The business structure has changed (e.g., sole prop → corporation)
✔ CRA cannot close the account by phone or you prefer a paper trail

💡 Easier Option: You can often close GST/HST faster by calling CRA. RC145 is typically a backup option.

🧾 Section-by-Section Guide to Filling the RC145

🟦 Part A — Business Information

Provide:

Business Legal Name
Business Number (BN) — 9-digits
Contact information

📌 Example BN Format
123456789 RT0001

📝 Note: GST/HST accounts always begin with RT.

🟥 Part B — Close GST/HST (RT) Program Account

This is the most important part.

Field	What to Enter
Cancel all RT programs?	✅ YES (for most small businesses)
Reason for cancellation	Business closed / small supplier / restructuring
Cancellation Date	Choose last date business charged GST/HST
Transferring business assets to another registrant?	Yes / No

🗓️ Choosing the Correct Cancellation Date

You must enter the effective deregistration date — meaning the final date GST/HST applies.

📍 Pro Tip for Tax Preparers:
Set the date at the end of a reporting period (e.g., Dec 31) to avoid having to file a stub-period return.

🔁 Asset Transfer Question Explained

This section asks whether business assets (like equipment, inventory) will transfer to another GST/HST-registered person.

⚠️ Asset transfers may require GST/HST unless an election applies (Form GST44 — sale of business election).

✍️ Authorization & Signature

End by signing and dating the form as:

Business owner (sole prop), or
Authorized signing officer (corporation)

Include your phone number so CRA can contact you.

🧰 📦 Additional Tips for Beginners

Tip	Why it Matters
Ensure all GST/HST returns are filed first	CRA will not close with outstanding filings
Check if business owes GST/HST	Outstanding balances stop closure
Keep a copy of the RC145	Good practice for audit trails
Record the CRA closure confirmation	Essential for client files

💬 CRA Contact for GST/HST Closure

📞 1-800-959-5525 (Business Enquiries)

Agents often help you:

✅ Close the account
✅ Back-date deregistration if warranted
✅ Avoid unnecessary filing periods

📦 Quick-Reference Summary Box

RC145 GST/HST Closure Key Points

✅ Used to close GST/HST (RT) program
✅ Fill business details + choose cancel date
✅ State reason (closed / small supplier / restructure)
✅ Prefer end-of-period date to avoid stub return
✅ Call CRA instead for faster closure

⚠️ Common Mistakes to Avoid

Mistake	Result
Choosing mid-year deregistration date	Extra filing period required
Not filing all returns first	CRA refuses termination
Forgetting asset tax rules	Possible assessment later
Closing GST before business truly ends	Re-registration required and messy

🏁 Final Words

Understanding RC145 helps you support clients during business transitions smoothly. With this form, you show professionalism, compliance, and detailed tax knowledge — all essential for success as a new tax preparer.

🧾 Closing a GST/HST Account in Canada (RC145) — What New Tax Preparers Must Know

When a business stops operating or no longer needs its GST/HST registration, you may need to close the GST/HST account with CRA. As a tax preparer, it’s crucial to handle this correctly and advise clients before filing the RC145 form.

Below is a complete, beginner-friendly guide — perfect for reference anytime! ✅

🏁 Step 1: Understand Why the GST/HST Account Is Closing

Before filing, discuss the business situation with your client.
Common reasons include:

❌ Business permanently shutting down
👩‍🍳 Sole proprietor taking full-time employment
🔄 Business restructuring or incorporation
💤 Business is inactive with no future plans to earn income

💡 Important Client Discussion

Should the client close the account or keep it active?

Sometimes it’s smarter not to close the GST/HST account yet!

✅ Keep the account open if:

The business might restart later
Client plans occasional freelance/side work
Client prefers to avoid the hassle of re-registering

CRA allows filing nil (zero) returns when there is no activity.

❌ Close the account if:

The business is concluded permanently
Client has no intention of future business activity
Filing annual nil returns is inconvenient

💬 Pro Tip Box

Once deregistered, if the client starts earning taxable business income again, they must re-register for GST/HST before charging tax.

📄 Step 2: Use Form RC145 — “Request to Close Business Number Program Accounts”

✅ Submit this form to cancel the GST/HST (RT) account.
Or call CRA and request closure by phone.

Key details the form collects:

Field	Explanation
Business Name & BN	Identify the business
GST/HST Account to close	Typically RT0001
Closure date	Usually end of a reporting period
Reason	Short explanation (e.g., “Business ceased operations”)
Business assets sold?	Yes/No

✍️ Example Reason to Write on RC145

📝 “Business ceased operations due to owner accepting full-time employment.”

Keep it simple — CRA does not need lengthy detail.

📅 Choosing the Right Closure Date

Many tax preparers recommend closing at the end of a reporting period, for example:

📆 December 31 instead of mid-year

Why?
✅ Avoid extra returns
✅ Cleaner accounting
✅ No partial periods to file

🏠 Selling or Keeping Business Assets?

On RC145 you’ll confirm whether business assets will be sold or transferred.

If assets remain and input tax credits were claimed, GST/HST may apply on fair market value.
If no assets or no GST/HST claimed → just select No.

📞 Filing Options

Method	Notes
✅ RC145 form	Most common method
✅ Phone CRA	Quick and accepted
❌ Client just stops filing	Could trigger CRA compliance review

⚠️ Before Closing — Remind Client!

🔔 All outstanding GST/HST returns must be filed
🔔 All GST/HST collected must be remitted
🔔 Final return must be marked FINAL

📌 Quick Checklist for Tax Preparers

Task	Status
Confirm reason for closing	✅
Discuss future business plans	✅
Decide if nil returns are easier	✅
Enter closure date	✅
Confirm asset disposition	✅
File RC145 or call CRA	✅
Submit final GST/HST return	✅

💬 Final Thought

Closing a GST/HST account seems simple — but a thoughtful conversation can save your client time and hassle later.
As a tax preparer, you are not just filing forms — you’re protecting their business future. 🌟

🏢 Closing a GST/HST Account vs. Closing a Business (Sole Proprietor vs Corporation Explained)

Understanding the difference between closing a GST/HST account and closing the business itself is essential — especially because the process differs for sole proprietorships and corporations in Canada.

This guide clearly explains what new tax preparers must know ✅

👥 Sole Proprietorship / Partnership — GST/HST Closure = Business Closure

For a sole proprietor (or partnership), the GST/HST program account is tied directly to the business.

📌 When you close the GST/HST account, you’re usually closing the entire business number.

That means:

The GST/HST (RT) account closes 🚫
The Business Number (BN) shuts down 📴
To restart business later → must register again (new BN or reactivate via CRA)
Must file any final GST/HST return ✅

This is why advisors often ask clients if they plan to operate again before shutting everything down.

💭 ❗ Client Discussion Reminder

If the owner may freelance or return to business later, consider keeping the BN active and filing nil GST/HST returns instead of closing.

This avoids the hassle of future registration 🧾🔁

🏛️ Corporations — Only Close the GST/HST Program Account

For corporations, the Business Number stays active unless the corporation is being dissolved.

📌 Corporations have multiple “program accounts” under one BN, such as:

Program	Account Type	Example
Corporation Tax	RC	RC0001
GST/HST	RT	RT0001
Payroll	RP	RP0001
Import/Export	RM	RM0001

So, when a corporation stops GST/HST-taxable activities (like selling taxable goods/services), you simply:

✅ Close the RT program account
❌ Do not close the Business Number (unless dissolving the corporation)

The corporation may still exist and earn passive investment income or other non-taxable revenues.

🧠 Example to Understand This

Situation	What Happens
Sole proprietor stops working and takes a full-time job	Close GST/HST = business ends
Corporation sells a commercial rental building and now only invests money	Close RT account only, corp stays active
Corporation dissolves completely	Close all CRA program accounts including BN

🔁 Can a Corporation Reopen GST/HST Later?

Yes! 🎉

A corporation can restart taxable operations anytime by simply calling CRA to reactivate or open the RT account again.

No need for a new Business Number.

📥 Key CRA Form

Form	Purpose
RC145	Request to close CRA program accounts (like GST/HST)

👉 Used for both proprietors and corporations.

🧾 Quick Reference Table

Action	Sole Proprietor	Corporation
Close GST/HST	Usually closes the entire business	Only closes RT account
Reopen GST/HST later	Must re-register	Simply reopen RT account
If the business stops but may return	Better to keep BN active + file nil returns	Close RT, keep BN active
If business is permanently ending	Close BN & all accounts	Dissolve corp + close all accounts

🛠️ When to File Final GST/HST Return

✅ Last day of business / end of reporting period
✅ Remit any net tax owing
✅ Mark return as FINAL

⚠️ Common Mistakes to Avoid

🚫 Thinking closing GST/HST = dissolving a corporation
🚫 Forgetting to file the final return
🚫 Closing accounts too early when client may start again soon
🚫 Confusing BN closure with program account closure

⭐ Pro Practice Tip Box

Always confirm with clients whether they truly want to close or just pause operations.
This protects them from unnecessary re-registrations and CRA delays.

✨ Final Takeaway

Business Type	What you’re usually closing
Sole Proprietor	Entire BN + GST/HST
Corporation	Only GST/HST program (RT) unless dissolving corp

Understanding this distinction will help you confidently guide clients and avoid CRA complications ✅

🔁 Filing Outstanding GST/HST Returns Using the Current Year’s Access Code (Beginner Guide)

Sometimes clients fall behind on filing their GST/HST returns — especially when the business has been inactive. As a tax preparer, you may encounter situations where:

✅ a previous year’s return is outstanding,
❌ but you don’t have the access code to file it.

Good news — you can file the current year first, use that confirmation to get an access code, and then go back and file prior returns. This is completely acceptable and commonly done.

Let’s break it down step-by-step 👇

🧠 Key Concept

You do NOT need to file GST/HST returns in chronological order.

If you have access to the current year’s filing info/access code, you can:

File the current return
Get a confirmation number
Use it to retrieve/set an access code for previous years
Go back and file past returns ✅

📌 Real-World Scenario

A business has a dormant year (no sales, no expenses — nil return) and misses filing. CRA sends a reminder stating the year is outstanding.

But… there’s no access code for that past period.

You do have this year’s access code. Perfect!

🛠️ Step-by-Step Filing Guide

✅ Step 1: File the Current Year Return

Go to CRA GST/HST NETFILE
Enter:
- Reporting period
- Business Number
- Current year’s access code
Enter $0 in all applicable fields for a nil return
Submit ✅

💾 Save:

Confirmation page 📄
PDF of submission
Confirmation number 🧾

✅ Step 2: Use the Confirmation Number to Get an Access Code

Go back to the NETFILE page and select:

“Need an Access Code”

Enter:

Required	Source
Business Number	Client file/records
Prior return type	GST/HST
Confirmation number	The one you just got ✅

🚨 Note:
If a prior return had a balance or refund, CRA permits using payment/transaction details instead — but for nil returns, the confirmation number is your tool.

You will now be prompted to choose your own access code 🎉
➡️ This becomes your permanent code for future filings too.

✅ Step 3: File the Prior Outstanding Return

Now that you have the new access code:

Return to NETFILE
Enter business number + the new code
File the older return (again, nil)

💾 Save the confirmation.

🧾 Pro Workflow Tips for New Tax Preparers

📎 Keep a record of:

All access codes 🔑
Filing confirmations 📄
CRA correspondence 📨

⭐ Best practice: Save PDFs for every submission

🧠 If multiple years are missing:
Repeat the process backward year-by-year as needed.

📦 Pro Tip Box

❗ Always check compliance history before filing
If CRA sees proactive filing + no balances owing, penalties can often be avoided for nil returns.

💬 FAQ

Question	Answer
Do returns need to be filed in order?	❌ No — CRA allows backward filing
What if it’s not a nil return?	You can still file current → get access code → file older
Can I pick my own future access code?	✅ Yes
Should I call CRA instead?	Only if online method fails — online is fastest

📝 Final Takeaway

This method is a lifesaver when:

A client has missed filings 📅
You only have the most recent access code 🔑
Returns are nil or simple to complete ✅

As a tax preparer, mastering this workflow builds efficiency and confidence — and helps clients stay compliant without stress.

7 – Registration & the Practical Side of Administering GST/HST for Your Clients

Table of Contents

🧾 How to Register & Open a GST/HST Account With the CRA

🚦 When Do You Need to Register?

🛠️ Ways to Register for a GST/HST Account

📞 Method 1 — Register by Phone

✉️ Method 2 — Register by Mail / Fax

🌐 Method 3 — Register Online (Business Registration Online)

🚫 Who Cannot Register Online?

📌 Special Scenarios

🧠 Pro Tax-Preparer Tip

🗂️ What Information You’ll Need

🔖 Key Form to Know

💡 Practical Notes Box

📝 Final Checklist for Tax Preparers

✨ Bottom Line

🧾 The RC1 Form & Registering for a Business Number (BN) in Canada

🧠 What Is a Business Number (BN)?

🧩 When You Use RC1

📝 Key Sections of RC1 (Explained)

1️⃣ Business Type & Ownership Information

2️⃣ Business Details

3️⃣ GST/HST Program Account (RT Account)

💡 Key Questions You’ll Answer:

GST/HST Filing Frequency Rules (Canada)

🎯 Effective Date Matters

4️⃣ Other CRA Program Accounts (Optional)

5️⃣ ✅ Final Signature

📬 After Submission — What Happens?

🧰 Pro Tax-Preparer Tips

🟨 Note Box

🪧 Sample Client Questions to Ask

🌟 Summary

🧾 Example: Mandatory GST/HST Registration & Completing the RC1 Form (Step-by-Step Guide)

📌 Scenario: When Registration Becomes Mandatory

🛠️ Filling the RC1 – Step-By-Step (Based on Todd’s Example)

1️⃣ Business Structure ✅

2️⃣ Business Description 🧠

3️⃣ GST/HST Section (RT Account) 🧮

🔸 Registration Reason

4️⃣ Revenue Estimates 📊

5️⃣ Fiscal Year & Filing Frequency 📅

6️⃣ Registration Effective Date 📍

7️⃣ Other CRA Accounts 🛑 (Skip if not needed)

📬 What Happens After Filing?

📂 Pro Tips for Tax Preparers

🟦 Quick Checklist Before You Submit RC1

📌 Final Word

🧾 Voluntary GST/HST Registration & Completing the RC1 Form (Beginner-Friendly Guide)

🎯 What Is Voluntary GST/HST Registration?

🤔 Who Should Consider Voluntary Registration?

🎁 Benefits of Voluntary Registration

⚠️ Responsibilities & Rules

👩‍💼 Example: Voluntary Registration Scenario

📝 Filling Out RC1 — Key Sections for Voluntary Registration

📅 Effective Date Rules

🧠 Pro Tips for New Tax Preparers

🟨 Note Box: Key Terms to Remember

❌ Common Mistakes to Avoid

✅ Quick Decision Flow

🎓 Final Takeaway

📩 CRA Correspondence After Submitting RC1: What to Expect (GST/HST Registration Guide)

📨 ✅ Types of Correspondence You May Receive

📄 1. Digital Confirmation (Instant for Online Applications)

📬 2. Paper Letter (If RC1 Was Mailed or Additional Review Needed)

❗ Sometimes: Follow-Up Questions From CRA

🔎 Key Details to Review When You Receive the Letter

📂 Record-Keeping Best Practice for Tax Preparers

🟦 Pro Tip Box

🟧 Tax Workflow Tip

🎯 Why This Letter Matters

❌ Common Mistakes to Avoid

🧾 Example Snapshot of Confirmation Information

🟩 Final Checklist for Tax Preparers

📅 GST/HST Filing Deadlines & Payment Dates in Canada (Beginner-Friendly Guide)

👥 Who Needs to File GST/HST?

📊 GST/HST Filing Frequencies

🧾 Annual GST/HST Filers (Sole Proprietors)

🏢 Corporate GST/HST Filers

📅 Annual Corporate Filers