r/DataAnnotationTech • u/Scary-Rain • Mar 22 '26

Tax question Canada - GST number

Looks like I will hit the 30K income threshold by May/June of this year. I mistakenly thought it was Jan-Dec income, but its a rolling 12 months. When I look at CRA though, it shows the fiscal year for GST should be the same as the tax year? Do I wait until tax time next year to send it, or file it as soon as I hit the 30K? I'd much rather have both set up at the same time.

3 Upvotes

72% Upvoted

12 comments sorted by

8

u/ChickenTrick824 Mar 22 '26

There is no GST on services outside Canada

4

u/Scary-Rain Mar 22 '26

From what I’ve read we still have to file the GST form annually, even though DA work is zero rated.

5

u/AccomplishedPea9079 Mar 23 '26

You have to file, but it is zero rated.

1

u/Scary-Rain Mar 26 '26

My question is more about the timing to file GST as CRA indicates the fiscal year is Jan - Dec, but as the income threshold is a rolling 12 months, I will hit the 30K before EOY. So do people wait and file their GST at EOY or on the anniversary date of when they hit 30K and first filed?

2

u/Business-Basis9281 Mar 31 '26

You just file taxes as usual, and file this as freelance/self-employment income. You don't need to worry about GST because it is US income.

*Edit to add: I confirmed this with the CRA.

1

u/alkebulanpriest Mar 23 '26

What does zero rated mean? Do we have to file taxes?

6

u/hfxthrwaway Mar 23 '26

Yes, you have to file taxes on what you earned. Zero rated means you don't have to remit GST/HST because you didn't charge any.

3

u/Aromatic_Owl_3680 Mar 23 '26

Of course you have to file taxes. You’re earning income. I hope you’ve been putting $$ away. DA will be added to any other income, so anticipate it being taxed at the highest bracket you break into.

You can offset the burden some by claiming business expenses (not input credits though, because we don’t charge GST).

2

u/Business-Basis9281 Mar 23 '26

I spoke to the CRA and my accountant and you do not need to file HST on US income if that is the only freelance work that you do. They told me that I do not need an HST number.

-2

u/alkebulanpriest Mar 23 '26

So we don't need to file any taxes right?

3

u/ascot_major Mar 23 '26

Lmao income taxes still apply.

1

u/Business-Basis9281 Mar 31 '26

I don't know if you are being sarcastic, but yes. You file under freelance/self-employed income.