Why don’t you need to register a GST account?

As your taxable revenue (see below) is less than $50,000 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.

What is Taxable Revenue ?

The following are a few examples of taxable, other than zero-rated, supplies (for the list of all applicable GST/HST rates, go to canada.ca/gst-hst and select “GST/HST calculator (and rates)” under “Most requested”):

    • registration for conferences, educational seminars, and trade shows;
    • theatre subscriptions;
    • books and subscriptions to magazines and newsletters;
    • mailing list sales;
    • advertising services;
    • restaurant meals;
    • short-term rental accommodation (of less than one month);
    • banquet facilities; and
    • club memberships, where the main purpose of the club is to provide recreational, dining, or sporting facilities to its members.

 

Refer to page 9 of RC4081 (https://www.canada.ca/content/dam/cra-arc/formspubs/pub/rc4081/rc4081-18e.pdf)

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:

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