You will often hear reference to your “Business Number” when dealing with government agencies, financial institutions and business-to-business transactions.  A Business Number is a 9-digit business identifier used in Canada and is required to register with the Canada Revenue Agency (CRA) for the following accounts:

• Harmonized Sales Tax (HST)
• Payroll
• Import/Export
• Corporate Income Tax

The most common Business Number accounts that businesses register for is the HST.  Businesses are not required to register for HST until business revenues reach $30,000 for any four consecutive quarters (one year).  Prior to registering you cannot charge, collect or remit the 13% HST to the CRA.  Businesses may want to voluntarily register for a Business Number prior to reaching the $30,000 threshold under the following circumstances:

1. Business input purchases – if you are going to be purchasing equipment or other products/services that will be used in the business and for resale.  By registering you can recoup the 13% HST you incur as a business tax credit.  Note that once you register you have to collect and remit the HST to the government on a monthly, quarterly or annual basis.  You can back date your HST account 30 days to capture business input expenses you may have already incurred.
2. Business-to-Business transactions – other businesses or wholesalers you deal with may require you to be registered for the Business Number account.

To register for a Federal Business Account Number visit the Canada Revenue Agency or contact a team member of The Business Enterprise Centre who will guide you through the process and answer any questions you might have.