Jelly! I’d love to live in BC, haha!
I actually need to get a GST number together. Which I understand takes all of 5 min, but I have to file it monthly. The business is small enough that I don’t have to charge GST yet. Is it possible to get GST refund without a number? I’m sole proprietor not incorporated.
Never mind all that. CRA website is a tad long winded but answered all my GST questions. Basically I have to start charging GST to be o claim GST credits. And I’m not about to start doing that ATM.
Wait, what? I’m jumping into this midstream so forgive me, but you can claim the GST of the Glowforge as a credit for being a work tool?! If so… niiiiiiiice!
Edit: Oh… did some googling… as a Tradesperson you can. Which makes sense. Nevermind.
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Yes unfortunately you’re currently stuck in no mans land with regard to GST. My only comment would be if you’re doing work for business rather than individuals they will be registered for GST so if you start charging them then they’ll get it all back and won’t care in the slightest that you’ve started charging GST. If you’re doing the majority of your work for individuals then they will.
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Ya I saw a Jordan was a cabinetmaker in his profile. You need to be employee though for the tradesperson route as I’m sure you’ve figured out.
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Under CRA rules a tradesperson can only claim up $400 dollars I think per year, in tools. I don’t think a laser cutter falls into that as it won’t be used directly on the job, and isn’t a tool. Also I think I have $400 dollars already spent just other tools I do need day to day. (Note , I think the number $400, tax season was awhile back…).
My situation is that I do have a day to day job for a local company. I bought, and claimed, the laser cutter under my side business. Now my account told me and file as such, that a laser cutter isn’t a tool, it is industrial equipment. So I can’t claim the cost, but a scheduled depreciation on my upcoming taxes(2016 filing ). Also my business is under 30k a year so I do not need a GST number. I can voluntarily choose to get a number, but then I MUST charge HST/GST.
I’m 50/50 on getting the number because I don’t want to charge taxes , as to keep prices down. But having a number allows, as you said, claiming GST back and access to some wholesalers.
http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/rgstrng/menu-eng.html#Voluntary
Has a good chart for if you must or must not get a number and when.
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Sounds like you’ve got it all under control. My only comment,back to your original concern over the duty and taxes on the glowforge, is that it will be part of the machine cost so keep the receipt and give it to your accountant.
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