Business Number vs. GST Number: What's the Difference?

What is a Business Number?

A business number is a 9-digit registration number issued by the CRA that identifies your business for tax purposes. This number stays with your business for life. When you incorporate, a business number is automatically assigned.

Sole proprietors only need one when registering for CRA program accounts like GST or payroll.

What is a GST Number?

A GST number is connected to your business number with a 4-character extension (usually RT0001). It allows your business to charge and collect GST on the sale of goods and services. You must register separately for a GST number even though it’s based on your business number.

When Should I Register for GST?

The primary factor is whether your business earns less than $30,000 in gross income during any 12-month period (“small supplier” threshold). If you exceed this, you’re generally required to register.

Even if not required, voluntary GST registration can allow you to claim input tax credits on business expenses and lend credibility to your business. The main drawback is the requirement to file GST returns.

Consult an accountant to determine if GST registration is right for your situation.