GST Question

[defino]

I am looking to start a small excavation skid steer business based from our acreage and will be looking to buy some machinery, we are currently not registered for GST and wanted to ask if registration would be of benefit for tax reasons. Thanks for any advice

[rubberboots]

You need one if you plan on making more than $30k/yr.

[defino]

Hopefully yes but also want if possible to register from the get go to claim GST back on machinery I will be buying initially

[YAFORDDIESEL]

YES do it


before you make 30 K a year have a GST account.




two things CRA audit

[JWCalgary]

Originally Posted by defino

Hopefully yes but also want if possible to register from the get go to claim GST back on machinery I will be buying initially

Yes! Get the number and claim the ITC.

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[Moosetalker]

Just a heads up you only have 5 years from purchase date to counter claim GST against GST collected Equipment purchases have different rules than CCA with Revenue Canada.

I made a big cash outlay to purchase landscaping equipment back when GST was 7%, Harper cut it back to 5% long story short with all the extra GST spent for fuel, oil, maintenance, repair etc it exceeded GST collected lost about 5k in GST That just ran out of reclaim time.
Wish I had been able to spread purchases out over a couple of years might have recouped a bit more.

System is geared to make you expand company, not Mom an Pop type business friendly.

[defino]

Thanks for all the info and replies it’s appreciated, I will look into what I have to do for registration as I will my business number first then I am able to register for a GST number from what I understand. Just not sure if I should go sole trader route or incorporated having not done it before in Canada it’s all new to me.