Table of Contents
- 🧾 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 Format123456789 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.
| If selling business | ✔ Mark Yes |
| If simply closing | ❌ Mark No |
⚠️ 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.
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