I just had a conversation with a fellow business-to-business (B2B) professional in the Comox Valley and I was shocked that he was not registered for GST. As he didn't earn more than $30,000 each year through his business, he didn't have to register. I had to explain why he should register voluntarily - not next month, not next week, but TODAY!
The advantage of not registering, as he saw it, was that he didn't have to charge his clients GST (or HST, as will soon be the case here in BC). I explained that since all of his clients are businesses, the vast majority of which are GST registered, they don't care if they pay GST or not, since they get back any GST paid for business expenses.
The advantage of voluntarily registering for GST is that, once he registers (which I'm sure he now will), he can be reimbursed for any GST paid on HIS business expenses. Money for nothing, as Dire Straits would say.
So to recap: if you're a B2B business, chances are very good that your clients don't care if they're charged GST or not, since they get it all back anyway. If you register, you get back all the money you spend on GST on business expenses. If you don't register, you lose that money (or, more accurately, you give it oh so generously to the government - ain't you swell!
So if you're a B2B business, go and register. Don't be dissuaded by folks that tell you you don't have to if you make less than $30,000. You always have the right to voluntarily register no matter how much income you earn.
To register online now, click the following link:
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/bro-ide/menu-eng.html
Wednesday, March 10, 2010
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About Me
- Ryan Parton
- I'm a professional copywriter and marketing strategist based in the Comox Valley, on beautiful Vancouver Island. A graduate with distinction of Concordia University’s School of Journalism in Montreal, I've been writing professionally for more than a decade. I relocated to the Comox Valley in 2002 and continued to work as a freelance writer and copywriter before becoming Marketing Coordinator for Comox Valley Tourism. In June 2008, I took my talent as a professional copywriter to the next level with the establishment of Ryan Parton Writing Solutions. Since then I've helped many small businesses, corporations and organizations perfect their marketing materials and business communications and obtain the exposure they deserve. I'm a member of the Professional Writers Association of Canada and the Comox Valley Chamber of Commerce. I still write for a variety of Canadian newspapers and magazines and am a regular contributor to In Focus Magazine. I live in the Comox Valley with my wife Sarah and my son Spencer.
Don't forget Ryan, that being registered also lends some credibility to your business. Other business's recognize that if someone is not GST registered then:
ReplyDelete1) the business is making less $30,000 Gross income;
2) if a business makes less than 30,000, can they survive? Will they be in business next year?
3) do you want to do business with someone who may not be operating next year. Especially for services that require some sort of warranty. Would you hire a electrician, plumber, carpenter - knowing that they may not be operating next year and be able to provide warranty service?
4) B2B is about building relationships - I for one want to invest and build relationships, give my business to someone that I believe is credible!!! I want to know that when I refer them to someone else - they aren't going to be a fly by night. I will give my business to a business that will be around as my business grows !
5) Oh yeah and of course you want to be GST registered if you are putting out money for capital expenditures the first year of business - so that you get refunded the GST you spend!!!
Sherri-Lee Mathers
Balsam Way Bookkeeping