When you start or run a business in Canada, one important thing you’ll hear about is GST. It might sound complicated at first, but it’s not too hard once you understand the basics. At Source Accounting & Tax Ltd. in NW Edmonton, we believe that handling GST should be simple and stress-free for business owners.

This guide will explain everything you need to know about GST, from what it is to how it affects your business and how we can help.

What is GST?

GST stands for Goods and Services Tax. It is a 5% federal tax that is added to most goods and services sold in Canada.

Whether you are selling a cup of coffee, offering cleaning services, or providing construction work, chances are, GST applies. As a business owner, you usually need to charge GST to your customers, collect it, and then send it to the government.

At Source Accounting & Tax Ltd, we help Edmonton businesses understand when and how they need to deal with GST.

Who Needs to Register for GST?

Not every business needs to register for right away. Here’s an easy rule:

If your total sales (before expenses) are $30,000 or more in a year, you must register for GST.
If your sales are less than $30,000, you can choose to register voluntarily.

Registering early has some benefits. For example, you can claim back the you pay on your business expenses. This is called claiming an Input Tax Credit (ITC), and it can save you a lot of money over time.

At Source Accounting & Tax Ltd, we guide you through the registration process and help you decide if voluntary registration is right for you.

How to Register for GST

Registering for GST is not as hard as it sounds. You can:

Apply online through the Canada Revenue Agency (CRA) website.
Call the CRA and register by phone.
Mail in an application form.

When you register, you’ll get a GST number. This number goes on your invoices and lets your customers know you are a registered business.

If you’d rather not deal with the paperwork, the team at Source Accounting & Tax Ltd can register your business for GST quickly and correctly.

How GST Works for Your Business

Once you are registered for GST, you need to:

Charge GST on your sales.
Collect GST from your customers.
Keep track of the GST you collect and the GST you pay on expenses.
File a GST return and send the government what you owe.

Let’s look at an example:

You sell a product for $100.
You add 5% GST, which is $5.
Your customer pays you $105.

You now owe the government that $5. But if you bought business supplies and paid GST on them, you can subtract that from what you owe.

Example:

You paid $2 GST on office supplies.
You collected $5 GST from your customer.
You send $3 to the government ($5 – $2 = $3).

At Source Accounting & Tax Ltd, we help you keep clean records, so you know exactly how much GST you need to pay.

When Do You File and Pay GST?

Depending on the size of your business, you will have different filing schedules:

Monthly (larger businesses)
Quarterly (medium businesses)
Annually (smaller businesses)

The CRA tells you your schedule when you register. Filing and paying on time is very important. If you miss a deadline, you could face penalties and interest.

At Source Accounting & Tax Ltd, we remind our clients about deadlines and even handle the filing for them, so you never have to worry.

Common Mistakes to Avoid

Here are some common mistakes that businesses make:

Not registering when required.
Charging incorrectly (for example, not adding to taxable products).
Poor record-keeping (not tracking collected or paid).
Filing late or not filing at all.
Mixing personal and business expenses.

If you make a mistake, don’t panic. It’s better to fix it sooner rather than later. Our team at Source Accounting & Tax Ltd. is experienced at helping businesses correct problems.

Special Rules You Should Know

GST can get a little tricky in certain situations. Here are a few examples:

Small Supplier Status: Businesses under $30,000 are called “small suppliers” and do not have to register but can choose to.
Zero-Rated Goods: Some items like basic groceries, prescription drugs, and exports are taxed at 0%. You charge no but can still claim ITCs.
Exempt Goods and Services: Some things, like medical services and educational courses, are GST-exempt. You don’t charge and can’t claim ITCs.

Understanding these special rules is important for keeping your taxes right. If you aren’t sure whether your business sells zero-rated or exempt products, Source Accounting & Tax Ltd can help you figure it out.

Benefits of Getting Professional GST Help

Here’s why many businesses in NW Edmonton trust Source Accounting & Tax Ltd for their needs:

Save Time: Spend more time growing your business and less time on paperwork.
Avoid Mistakes: We make sure your is calculated and filed correctly.
Peace of Mind: Know that your business is compliant with CRA rules.
Personalized Advice: Every business is different. We offer advice that fits your unique needs.

Taxes can feel overwhelming, but you don’t have to do it alone. Our team is friendly, experienced, and ready to help.

Conclusion

Dealing with is part of running a successful business in Canada. Whether you are just starting or already established, understanding helps you stay compliant and avoid unnecessary problems.

At Source Accounting & Tax Ltd. in NW Edmonton, we specialize in making taxes easier for small and medium-sized businesses. We’ll help you register, manage, and file your taxes properly so you can focus on what you do best — growing your business.

If you need help with or any other accounting services, contact Source Accounting & Tax Ltd. today. We’re here to support your success!

FAQs

What does GST stand for?

stands for Goods and Services Tax. It’s a 5% tax charged on most goods and services sold in Canada.

How do I know if I need to register for GST?

If your business makes more than $30,000 in revenue over 12 months, you must register. If you make less, you can still register voluntarily.

What happens if I don’t register for when I should?

If you don’t register, you could face penalties and may still owe on your past sales. It’s best to register as soon as you reach the $30,000 mark.

How often do I need to file returns?

It depends on your business size:

Larger businesses: Monthly
Medium businesses: Quarterly
Small businesses: Annually

Can I claim GST back on expenses?

Yes! If you are registered for, you can claim back the you pay on business expenses through Input Tax Credits (ITCs).

What if I sell goods that are zero-rated or exempt?

Zero-rated goods (like basic groceries) have 0% GST, so you don’t charge but can claim ITCs. Exempt goods (like medical services) have no , and you cannot claim ITCs.

Can Source Accounting & Tax Ltd. help me if I made mistakes in the past?

Absolutely! We can help you correct filings and work with the CRA to fix any issues.

GST Explained: A Complete Guide for Edmonton Businesses