CRA Business Number, HST, Payroll and Import-Export Account Registration

What the business number is

The 15-digit account number

A 9-digit business number, a 2-letter program identifier and a 4-digit reference number.

Several accounts under one number

A corporation keeps one business number and adds a program account for each tax it deals with.

Where it comes from when you incorporate

A federal corporation receives its business number with the certificate of incorporation. See federal incorporation under the Canada Business Corporations Act.

The four program accounts most corporations need

RC, corporation income tax

Every corporation has one. The T2 is filed against it.

RT, GST/HST

Needed once you pass the $30,000 small supplier threshold, or earlier if you register voluntarily.

RP, payroll deductions

Needed if anyone, including you, is paid a salary.

RM, import-export

Needed before commercial goods cross the border.

Other program accounts

RZ, information returns

For slips such as T5018 or NR4 where they are not filed through payroll.

RR, registered charity

Opened only for a registered charity.

Specialty accounts

Luxury tax and underused housing tax have their own accounts, opened only where they apply.

The $30,000 small supplier threshold, measured properly

Four consecutive calendar quarters

Under section 148 of the Excise Tax Act, you add up your worldwide taxable sales for the four calendar quarters before the current one. The window rolls forward every three months.

A single calendar quarter

If you pass $30,000 inside one quarter, you stop being a small supplier at once.

What counts

Taxable sales, including zero-rated sales, but not exempt supplies or sales of capital property.

Public service bodies

The threshold is $50,000 for a public service body such as a charity. See our GST/HST registration guide and how to register for HST, from Gondaliya CPA.

When you must register and from what date

Over $30,000 in one quarter

Registration takes effect no later than the sale that took you over, so that invoice must carry the tax.

Over $30,000 across four quarters

You stop being a small supplier at the end of the month after the quarter in which you crossed, and registration takes effect from the next sale.

The 29-day window

You must apply within 29 days of the first taxable sale you make other than as a small supplier.

Businesses that register regardless

Taxi and ride-share drivers must register from their first fare.

When voluntary registration is the better answer

Start-up costs

Input tax credits on equipment, leaseholds and professional fees are recoverable only from your effective date forward.

Business customers

Registered customers claim the tax back, so charging it costs them nothing.

Zero-rated and export sales

You charge no tax but still recover the tax on your costs.

When it is the wrong answer

Selling to consumers, where 13% in Ontario is a real price increase.

Choosing the HST reporting period

Assigned by sales

$1,500,000 or less is annual, over $1,500,000 up to $6,000,000 is quarterly, and over $6,000,000 is monthly.

Choosing to file more often

A small registrant can elect to file monthly or quarterly, for example to recover start-up credits sooner.

Deadlines

Monthly and quarterly filers file and pay one month after the period. A corporation filing annually files and pays three months after its year end.

The RP payroll account and remitter types

What you must withhold

Income tax, CPP and EI from every salary payment, under subsection 153(1) of the Income Tax Act.

Your remitter type

Set by your average monthly withholding from two calendar years earlier. Under $25,000 is a regular remitter, due by the 15th of the next month. $25,000 to $99,999.99 remits twice a month. $100,000 or more remits up to four times a month.

Quarterly remitting

Small employers with a perfect compliance record and low withholding can remit quarterly, by 15 April, 15 July, 15 October and 15 January.

Late remittances and T4s

Penalties run from 3% to 10% depending on how late, and 20% for a repeat. T4 slips are due by the last day of February.

The RM import-export account and the CBSA

Before your first shipment

The Canada Border Services Agency needs your business number and RM account before you import or export commercial goods.

The CARM Client Portal

Importers register in the CBSA’s CARM Client Portal through a business account manager to account for duties and taxes.

Release Prior to Payment

To have goods released before duties and taxes are paid, you join the program and post financial security with the CBSA.

Quebec is different

Revenu Québec

GST/HST for a Quebec business is administered by Revenu Québec, together with the Quebec sales tax.

The CRA still runs the rest

A Quebec corporation still opens its RC and RP accounts with the Canada Revenue Agency.