What is the benefit of registering for GST/HST voluntarily?
Allan Madan, CA
The main benefit is that you can claim input tax credits (ITC) for the amount of GST/HST you paid on business expenses. For example, if you purchase materials from a vendor in the course of business, the government will provide you with credit for the amount of GST/HST you paid on the purchase. Therefore, any sales tax you pay on qualifying business expenses do not represent real costs to your business. If you do not register, you lose such benefit.
Disclaimer
The information provided on this page is intended to provide general information. The information does not take into account your personal situation and is not intended to be used without consultation from accounting and financial professionals. Allan Madan and Madan Chartered Accountant will not be held liable for any problems that arise from the usage of the information provided on this page.
ABOUT THE AUTHOR
ALLAN MADAN
CA.CPA.CGA
Allan Madan is a CPA, CA and the founder of Madan Chartered Accountant Professional Corporation. Allan provides valuable tax planning, accounting and income tax preparation services in the Greater Toronto Area.
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