Understanding Your GST/HST
Responsibilities as an Independent Healthcare Worker
As an independent healthcare worker, you need to register for and manage the Goods and Services Tax (GST) or Harmonized Sales Tax (HST) in Canada. This guide aims to provide you with a simple explanation of your responsibilities.
Why GST/HST Matters:
If your annual revenue from your services exceeds $30,000, you are required to register for GST/HST. This tax is applied to the services you provide, and it’s important to understand your obligations.
Steps to Follow:
Determine Your Eligibility
Check if your total revenue from your services, along with the revenue from your associates, is over $30,000 in the last four consecutive calendar quarters or in any single calendar quarter.
Choose the Appropriate Tax Type
Determine whether you should register for GST or HST based on your province. Some provinces have combined their sales tax with the federal GST to create the HST.
Gather Necessary Information
Collect your social insurance number (SIN), business number (if applicable), and details about your business structure and activities.
Access the CRA Business Registration Online (BRO) Service
Visit the Canada Revenue Agency’s Business Registration Online (BRO) service on their official website.
Resources and Contacts:
- Canada Revenue Agency (CRA):
- Website: Canada Revenue Agency
- Business Registration Online: BRO Service
- GST/HST Information Line:
- Call 1-800-959-5525 for assistance regarding GST/HST.
Complete the Registration Form
Fill out the online registration form with accurate information about yourself and your business.
Receive Your Business Number
Once processed, you’ll receive a Business Number (BN) from the CRA, which is your unique business identifier.
Determine Your Reporting Period
The CRA will assign you a reporting period based on your business activities and revenue.
Start Collecting GST/HST
Begin charging your clients the appropriate GST/HST rate on your services.
File Regular GST/HST Returns
File your GST/HST returns as per your assigned reporting period, outlining your sales, input tax credits, and the GST/HST you collected.
Claim Input Tax Credits (ITCs)
Recover the GST/HST paid on business-related expenses by claiming input tax credits.
Maintain Records
Keep thorough records of your sales, expenses, and GST/HST collected and paid.
Stay Informed
Be aware of any changes in GST/HST rates or regulations.
Simple Guide – GST/HST Rates by Province:
| Province | GST Rate | PST Rate | HST Rate |
| Alberta | 5% | – | – |
| British Columbia | 5% | 7% | – |
| Manitoba | 5% | 7% | – |
| New Brunswick | 5% | – | 15% |
| Newfoundland and Labrador | 5% | – | 15% |
| Nova Scotia | 5% | – | 15% |
| Ontario | 5% | – | 13% |
| Prince Edward Island | 5% | – | 15% |
| Quebec | 5% | 9.975% | – |
| Saskatchewan | 5% | 6% | – |
Understanding and fulfilling your GST/HST responsibilities is crucial for your independent healthcare business. If you have questions or need assistance, consider consulting a tax professional or accountant to ensure compliance and peace of mind.
