Your revenue is not taxable (see below) so you do not need to register for a GST account, so you do not need to charge GST or file GST returns. There may be financial advantages for filing, so please contact the EFCL for more information.

Information needed before you start registering for a GST account

A GST/HST account number is part of a business number (BN). If you don’t have a BN yet, you will receive one when you register for your GST/HST account. Since your annual taxable revenue is more than $50,000 , you may have to register for a GST account.

  1. Effective date of registration 
    • When do you want to start collecting GST, usually the date when you register a GST account.
  2. Fiscal year for GST/HST purposes 
    • Usually the same as your tax fiscal year.
  3. Total annual revenue 
    • Your annual taxable revenue.
  4. Basic business information
    • Business name
    • BN (if the business already has one)
    • Type of business or organization (such as sole proprietor, partnership, corporation, registered charity)
    • Name and SIN of directors
    • Physical address
    • Mailing address (if different from the physical address)
    • Description of major business activity

For more information, refer to https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/account-register.html .

How to Register ?

You can register:

    • Online
    • Mail or by fax
    • Telephone

To get a step by step walkthrough for registering a GST account, please visit https://efcl.org/register-a-gst-account-and-charge-gst/.

Why don’t you charge GST ?

Most of grants, donations are NOT taxable. Membership can be taxable OR non-taxable. 

Membership:

Memberships sold by non-profit organizations can be exempt or taxable depending on the type of benefits the members are entitled to. If the following benefits but nothing more exist, the memberships are exempt, else they are taxable:

    1. An indirect benefit that is intended to accrue to all members collectively.
    2. The right to receive services in the nature of investigating, conciliating, or settling complaints or disputes involving members.
    3. The right to vote or participate in meetings.
    4. The right to receive or acquire property and services for an additional fee equal to the fair market value.
    5. The right to receive a discount for property or services sold by the organization when the total value of all the discounts is insignificant (less than 30%) in relation to the membership fee.
        • For example, a $100 membership fee provides members with a $5 discount for each of 10 admissions to the theatre ($50 discount). This membership would be taxable since the total value of the discounts is significant (30% or more) in relation to the membership fee whether or not the discounts are used.
    6. The right to receive periodic newsletters, reports, or other publications if:
        •  The value of the newsletters, reports, and publications is insignificant (less than 30%) in relation to the membership fee; or
        •   The newsletters, reports, and publications provide information on the organization’s activities or financial status except if their value is significant in relation to the membership fee and a fee is ordinarily charged to non-members.

 

Refer to page 11 of RC4081 (https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4081/rc4081-18e.pdf)

Want to know more ?

Refer to the RC4081 ( https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4081/rc4081-18e.pdf ) form and review the topics listed below:

      • Taxable supplies
      • Exemptions for non-profit organizations
      • Memberships

Your History:

To view your selection process from the GST Tool, please click the image below: