Author Topic: Canadian Sole Prop --> Etsy store; Do I need to charge GST?  (Read 1385 times)

lifejoy

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I have an accountant friend and she gave me a tip about me needing to determine if I have to charge GST when I sell stuff on Etsy. I'm Canadian and have no business background, but I'm learning!

One website told me: "There are no formal legal requirements for establishing either a sole proprietorship or general partnership, other than to register the business name. If an owner or a partner intends to hire employees or charge clients GST/HST or Provincial Sales Tax, the business owner(s) will also be required to register for these tax accounts."

I'll be selling jewelry. Any hints or pointing me in the right direction would be much appreciated! <3

NorthernDreamer

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Re: Canadian Sole Prop --> Etsy store; Do I need to charge GST?
« Reply #1 on: July 17, 2018, 10:46:32 AM »
Hello!

I have two Etsy shops and have been running one of them for almost three years. I can let you know about my situation but don't want to give Official Legal/Tax Advice ;)

From my understanding, you do not NEED to register to collect HST until you have sold at least $30,000 over the course of four consecutive quarters. I did have to register for one in 2016. You CAN elect to register for one at any time, since you "get back" the HST you spend on supplies. I sell a lot internationally and do not collect HST from them, but do buy many supplies in Canada, so it tends to even out for me.

https://www.canada.ca/en/services/taxes/gsthst.html

If you have any questions about Etsy stuff I'm happy to chat. Both my shops are niche jewellery shops. I like to think I am fairly successful, and only run the shops as a hobby/side hustle (for now - not going to be quitting my day job anytime soon!). I always warn people that the business side to running a creative business takes WAY more time than you'd think, especially as you're learning!

 

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