GST/HST: Registered or Not

One question shapes how RelistKit handles tax for you: are you registered for GST/HST? Most casual sellers aren't, and they must not charge tax. If you are registered, you charge tax on the sales you take payment for yourself, and send it to the CRA. Either way, tell RelistKit which province you're in, and it handles the rest.

Set your province and registration

1. Open Settings and find the Sales tax card.
2. Choose your Province or territory. Every seller sets this, registered or not.
3. If you're registered, switch on Registered for GST/HST. If you're not, leave it off.

Every setting on the card saves as soon as you change it.

If you're not registered

You don't charge tax on any sale, and RelistKit never adds tax to a sale. What RelistKit still does:

• Adds the tax you paid to your item costs. You can't claim back the sales tax you pay on stock, so RelistKit adds your province's rate, like 13% HST in Ontario, to what you paid. See How RelistKit Counts Your Costs.
• Shows your sales by quarter under Reports → Tax collected (Starter and up). See Tax Collected.
• Watches the $30,000 threshold under Reports → GST/HST (Growth and Pro). Once your sales pass $30,000 in one calendar quarter, or over four quarters in a row, the CRA requires you to register. See The $30,000 Threshold.

If you're registered

Once Registered for GST/HST is on, the Sales tax card asks for a few more things:

1. Enter your GST/HST number. It's optional: if it hasn't arrived from the CRA yet, leave it empty and add it later.
2. If you're in British Columbia, Saskatchewan or Manitoba and also registered for PST, switch on Also registered for PST. In Quebec, switch on Also registered for QST if you are.
3. Under Facebook Marketplace sales, choose My price includes tax (typical for cash sales) or I charge tax on top of my price.
4. Choose your Filing period: Monthly, Quarterly or Annual (the CRA default for small businesses).
5. If you use the quick method, switch on I use the quick method.

From then on:

• Facebook Marketplace sales you record have GST/HST worked out at your province's rate, on the day of the sale.
• Expenses, stock purchases and equipment get an HST in it (or GST in it) box, so the tax you paid counts toward your input tax credits (the tax you claim back). On the quick method, only equipment has it. See Expenses and Stock Purchases.
• Other income gets an HST you charged box. See Other Income.
• On the Pro plan, Reports → GST/HST shows your return figures. See Your GST/HST Return Figures.

The quick method is a simpler way to work out the GST/HST you owe: you send the CRA a set percentage of your sales, instead of the tax you collected less the tax you paid. On the quick method, you don't claim back the tax you pay on stock, so RelistKit keeps adding it to your item costs.

Why marketplace sales are different

Poshmark, eBay and Depop collect the sales tax from buyers and send it in themselves, whether you're registered or not. So RelistKit never works out tax on those sales, and they don't count toward the $30,000 threshold. Facebook Marketplace doesn't collect tax: you take the payment, so those sales are yours to tax once you're registered.

Common questions

My GST/HST number hasn't arrived yet. Can I still switch registration on?

Yes. Switch on Registered for GST/HST and leave the number empty. Add it under Settings → Sales tax when the CRA sends it.

I recorded a cash sale, but it has no tax.

A sale recorded as Other (offline or another site) never has tax added. RelistKit only works out tax on Facebook Marketplace sales. Ask your accountant how to handle taxable cash sales.

I switched registration on by mistake.

Switch it off again. Sales you recorded while it was on keep their tax. To fix one, delete the sale record under Sales → All sales, then record it again. Your item costs go back to normal on their own.

Do I charge tax on my Poshmark, eBay or Depop sales?

No. Those marketplaces charge the buyer and send the tax in.

Does RelistKit file my return?

No. RelistKit gives you the figures. You or your accountant file the return with the CRA.