Pocket-Friendly Import-Export Account Registration for Canadian Businesses

Divide the total by one plus the rate. At Ontario's 13% in 2026, a $113 tax-included total is $113 divided by 1.13, or $100 before tax and $13 of HST. Use 1.14 in Nova Scotia, 1.15 in New Brunswick, Newfoundland and Labrador and Prince Edward Island, and 1.05 where only the 5% GST applies. Multiplying the total by 13 over 113 gives the Ontario tax directly.

Most insurance is an exempt financial service, so no GST or HST is charged on the premium. That covers auto, home and life policies. Because the premium is exempt, a business cannot claim an input tax credit on it, although it may still deduct the premium as a business expense where the coverage relates to earning income. Some provinces tax certain premiums under their own system, outside GST/HST. Check each line on the insurer's statement.

Often no federal income tax at all. For 2026 the federal basic personal amount is $16,452, and each province sets its own, so income below those amounts attracts no income tax. CPP and EI are still withheld on employment earnings. Filing still matters at low income: the GST/HST credit, the Canada workers benefit, the Canada child benefit and provincial top-ups are all paid from an assessed return, so skipping it costs money.

It is self-assessed on a calendar year. Individuals file a T1, report income, claim deductions and credits, and pay federal tax on graduated brackets that start at 14% in 2026 and rise to 33%, with a separate provincial layer on top. Corporations file a T2 on their own fiscal year. Consumption is taxed separately through GST/HST and provincial sales taxes. The CRA assesses and collects, crediting whatever was already withheld at source.

The Canada Revenue Agency is the federal body that administers income tax, GST/HST, payroll deductions and most benefit programs for the federal government and most provinces. It processes T1 and T2 returns, issues assessments and refunds, collects amounts owing, runs reviews and audits, and pays benefits such as the Canada child benefit. Your CRA My Account is the online portal showing your slips, notices of assessment, balance and payment history.

Your due date follows your reporting period rather than the calendar. The CRA assigns monthly, quarterly or annual filing based on your taxable revenue, and the return and the payment carry the same deadline once that period ends. Annual filers above a set level also owe instalments through the year. The exact date is printed on your GST/HST return and shown in CRA My Business Account, so confirm it there instead of assuming a date.

Checking CRA My Account is usually faster than phoning: it shows whether the return is assessed, the refund amount and the deposit date. If you do call, use the individual tax enquiries line listed on the CRA's contact page, and have your social insurance number, date of birth and an amount from a recent return ready for identity checks. An online return usually refunds in about two weeks, and a non-resident return can take up to sixteen.

A corporation files a T2 return for every tax year it exists, even with no revenue and no tax payable. Skipping a nil return invites an arbitrary assessment and leaves the corporation with a filing history that blocks routine requests later. For an unincorporated business there is no separate return, but reporting the nil or loss position on your personal return preserves any loss for future years and keeps your records consistent.

Tobacco carries three layers of tax: federal excise duty applied when the product is packaged or imported, a provincial or territorial tobacco tax, and GST or HST on the retail price. Federal duty rates are indexed and adjusted annually, and provincial rates move with each budget, so the total differs by province and by product type. The Canada Revenue Agency publishes the current excise duty rates and each province publishes its own tobacco tax rate.

Yes. A resident corporation files a T2 for every tax year it exists, even with no revenue and no tax payable, and that filing is usually called a nil return. It is due six months after the fiscal year end. Skipping it invites penalties, holds up loss carry-forwards and leaves payroll, GST/HST and benefit accounts out of step. If the corporation is genuinely finished, dissolving it properly is cleaner than filing empty returns forever.

Start with complete expense claims: the business share of vehicle costs backed by a mileage log, home office space, supplies, subcontractors, insurance and professional fees. Business meals and entertainment are only partly deductible, and the restriction applies to the whole bill including tax and tip — record the full amount and apply the limit on the return. Register for GST/HST when the rules require it so input tax credits can be recovered on purchases. Then use RRSP room to level out a strong year, and look at incorporating once profits sit well above what you draw for living costs.

Yes. Reporting self-employment income does not depend on holding a licence or registering a business. You file Form T2125 with your T1 under your own name and social insurance number, and CRA accepts it. A business number is needed only when you register for GST/HST, payroll or another CRA programme. Municipal licensing and provincial name registration are separate obligations that do not change your filing duty either way.