GST for BC Small Businesses: Registration, Charging, and Remitting
- Kevin Seevers CPA, CA
- Jan 5
- 3 min read
What You Need to Register, Charge, and Remit
For many small business owners in British Columbia, GST is one of those topics that feels manageable until it suddenly is not. We often see businesses focus on growth, sales, and day to day operations, only to discover later that GST has quietly become an issue in the background.
Most GST problems are not the result of intentional non compliance. They usually stem from misunderstandings around when registration is required, what should be charged, or how GST should be handled once collected. Unfortunately, CRA does not treat these misunderstandings lightly, particularly when several filing periods are involved.
Understanding how GST works early can help protect your cash flow and prevent avoidable stress later.
When GST Registration Becomes Mandatory
GST registration is required once your business exceeds thirty thousand dollars in taxable revenue over a rolling twelve month period. This threshold is based on revenue before expenses and is measured across any four consecutive calendar quarters rather than a fiscal year.
This often catches business owners off guard. Some assume that because their revenue fluctuates or because they reinvest heavily into the business, GST does not apply yet. Others believe that unpaid invoices do not count toward the threshold. In practice, invoiced revenue still counts even if the cash has not been collected.
Once the threshold is exceeded, registration is required and GST must be charged on future sales. If registration is delayed, CRA may still assess GST on prior sales, even if customers were never charged.
What You Are Required to Charge GST On
Most goods and services provided by small businesses in BC are subject to GST. There are exceptions, but they are narrower than many people expect. Some supplies are zero rated, meaning GST is charged at zero percent, while others are exempt and not subject to GST at all.
The distinction matters because it affects whether GST paid on expenses can be recovered. Businesses that assume all non taxed sales are treated the same often miss legitimate input tax credits or claim them incorrectly. When a business offers multiple services or products, determining the correct GST treatment becomes increasingly important.
Recovering GST on Business Expenses
Once registered, businesses are generally entitled to recover GST paid on eligible business expenses through input tax credits claimed on their GST returns.
Issues typically arise when records are incomplete or when personal expenses are mixed with business costs. CRA audits frequently focus on input tax credits because documentation standards are strict. Receipts must be complete and expenses must clearly relate to business activity. Good bookkeeping is not just efficient in this context. It provides a layer of protection.
Filing and Remitting GST
GST returns are filed either annually, quarterly, or monthly depending on revenue levels. Filing on time is important even when cash flow is tight. Penalties and interest accumulate quickly when returns are late, and unpaid GST can become one of the most difficult tax balances to resolve.
One of the most common issues we see is treating collected GST as operating cash. When GST is spent before it is remitted, businesses are forced to fund the payment later from their own resources.
Final Thoughts
GST is not simply another tax. It is money collected on behalf of CRA and held in trust. When handled properly, GST is largely neutral to a business. When handled casually, it can create significant financial pressure.
If GST has started to feel confusing or uncomfortable, it is often a sign that a review would be worthwhile.
Need a Second Look?
GST compliance is generally easier to manage when it is reviewed proactively rather than corrected later. A short review can often identify issues before they become costly or disruptive.
If you are a BC small business owner and would like support reviewing your GST registration status or how GST is currently being handled in your business, this is an area we regularly assist clients with.
For broader tax planning considerations, you may also find our guide on incorporating a business in British Columbia helpful.