Frequently Asked Questions
Answers to Your VAT Queries in Canada
What is VAT registration and who needs it in Canada?
VAT registration involves enrolling a business with the Canada Revenue Agency for value-added tax reporting. Canadian entities with taxable supplies over the annual threshold must register to charge, collect and remit GST/HST to remain compliant.
How do I register for VAT in Canada?
You can register online through the CRA’s Business Registration Online service or by mail using form RC1. VatLinea can guide you through the process, prepare required documentation and submit your application on your behalf.
What documents are required for VAT registration?
Common documents include your business number, articles of incorporation, proof of address, and personal identification for directors or proprietors. Additional supporting records may be needed depending on your business structure.
When do I need to start charging VAT?
Once your VAT registration is approved by the CRA, you must begin charging GST/HST on taxable supplies from the effective registration date. VatLinea will confirm your date and advise on invoicing requirements.
What are the standard reporting periods?
VAT reporting can be monthly, quarterly or annually, based on your total taxable revenues. Smaller businesses often file annually, while larger volumes require more frequent submissions to CRA.
How do I file my VAT return?
Returns can be filed online via the CRA’s My Business Account portal or through third-party service providers. VatLinea offers a full filing service, preparing and submitting returns accurately and on time.
Can VatLinea handle multi-jurisdictional compliance?
Yes. We assist clients operating in multiple Canadian provinces and ensure correct application of federal and provincial rates, filing procedures and documentation standards.
What penalties apply for late filings?
Late filing or late payment may trigger interest charges and penalties assessed by the CRA. VatLinea monitors deadlines and can set up reminders to help you avoid additional fees.
How long does registration take?
Processing times vary but typically range from 2 to 6 weeks. VatLinea expedites your application by pre-checking all details and following up directly with the CRA on your behalf.
Can a non-resident business register for VAT in Canada?
Yes. Non-resident entities supplying digital or physical goods and services to Canadian customers may register and appoint a Canadian representative to manage reporting obligations.
What rates apply to different supplies?
GST is 5% federally; HST combines GST with provincial portions where applicable. VatLinea helps you determine which rate applies to your goods or services in each province.
How do input tax credits work?
Registered businesses can claim input tax credits to recover VAT paid on eligible business expenses. VatLinea reviews your purchases and maximizes credit claims while maintaining CRA compliance.
How do I cancel my VAT registration?
You can request cancellation by submitting form RC145 once your taxable supplies fall below the deregistration threshold or if you cease operations. VatLinea will guide you through the deregistration steps.