Document text
Notice to Clients: GST/HST Will Be Charged From [EFFECTIVE DATE]
[YOUR BUSINESS OR FULL NAME]
[BUSINESS ADDRESS]
Telephone: [PHONE] · Email: [EMAIL]
GST/HST registration number: [BUSINESS NUMBER] RT0001 [OR: APPLIED FOR ON (DATE), NUMBER TO FOLLOW]
[CLIENT'S LEGAL NAME]
Attention: [CONTACT NAME / ACCOUNTS PAYABLE]
[CLIENT'S ADDRESS OR EMAIL]
[DATE]
Re: GST/HST on my invoices from [EFFECTIVE DATE] — [CONTRACT, PURCHASE ORDER OR PROJECT NAME]
Dear [NAME],
Thank you for working with me. I am writing to let you know that my business is no longer a small supplier for GST/HST purposes and is now required to register.
1. Why this changes
My revenue from taxable supplies, counted over four consecutive calendar quarters, went over $30,000, although it did not go over $30,000 in any single quarter:
Calendar quarter Taxable supplies
[QUARTER 1, FOR EXAMPLE JANUARY 1 – MARCH 31, YEAR] $[AMOUNT]
[QUARTER 2] $[AMOUNT]
[QUARTER 3] $[AMOUNT]
[QUARTER 4] $[AMOUNT]
Total over four quarters $[TOTAL ABOVE 30,000]
Under the Excise Tax Act and the CRA rules, I stopped being a small supplier on [LAST DAY OF THE MONTH AFTER THAT QUARTER]. My GST/HST registration takes effect no later than [EFFECTIVE DATE], the day of my first supply after that date.
2. What changes for you
Every invoice for supplies made on or after [EFFECTIVE DATE] will show GST/HST separately, at the rate that applies where the supply is made: [5% GST / 13% HST / 14% HST / 15% HST], together with my registration number.
[OPTIONAL: Under our agreement dated [DATE], prices are stated [BEFORE TAX / INCLUDING TAX]. I will apply them as follows: …]
Invoices for work delivered before [EFFECTIVE DATE] will not include GST/HST.
If you are a GST/HST registrant, you may be able to claim input tax credits for the tax shown. I will give you any invoice details you need for that on request.
3. Please confirm
Please update your supplier record with my registration number and confirm by [DATE] that your accounts payable team will pay the GST/HST shown on my invoices from [EFFECTIVE DATE]. If you have questions, please contact me at the details above.
Yours sincerely,
____________________
[YOUR FULL NAME]
[TITLE, IF ANY]
For me
[ ] Quarter in which the four-quarter total went over $30,000: [QUARTER]
[ ] Small supplier status ended: [END OF THE FOLLOWING MONTH]
[ ] Effective date of registration (no later than the first supply after that): [DATE]
[ ] Registered with the CRA within 29 days of the effective date: [DATE, CONFIRMATION]
[ ] Notice sent to every regular client on [DATE]