Unlike employees, almost all independent contractors will need to charge GST/HST for their services. This will apply whether they are incorporated or not (i.e. a sole proprietor).
Do I Need To Charge GST?
If your annual income (before expenses) is less than $30,000 you are considered a small supplier, and will not need to charge. As soon as your income exceeds this, you will need to charge. For this reason, it is helpful to have a GST number registered.
- Resource: Do I Need to Register For a GST/HST Account? Questionnaire
- Resource: Voluntary Registration May Make Sense For You
Get a GST Number
Registering a GST number is free of charge, and must be obtained from the Canadian Federal Government.
- Resource: Apply for a GST/HST Number
- Resource: GST/HST Netfile – If you qualify, you can file your GST/HST returns online through the CRA.
- Resource: CRA Online Business Registration – Register your business number, GST/HST number, Corporation Income Tax, and Payroll all at once.
If you have questions or concerns about GST/HST, Donna Cona recommends you consult your accountant.