5 CRA and GST/HST steps for registering a printmaking business in Ontario

What to take away

• CRA registration for printmaking business starts with a business number, then a GST/HST account once you cross the small supplier threshold.
• In Ontario, most sales of prints and teaching are subject to 13% HST; zero-rated exports need proof of shipment.
• You can claim input tax credits on studio equipment and chemistry bought for resale, and rebates on some purchases.
• Filing is usually annual if you are a small supplier; penalties apply for late returns and unpaid tax.
• Keep records for six years and charge HST once you register, even if you sell through a gallery.

Step 1: choose between a sole proprietorship and a corporation

Most Ontario printmakers start as a sole proprietor. You report business income on your personal T1 return using form T2125. No separate legal entity, no Ontario corporate filing, and you can register a business name with ServiceOntario if you want to operate under a name other than your own.

A corporation is a separate legal person. You would incorporate under the Ontario Business Corporations Act or the Canada Business Corporations Act. That means a separate tax return, minute book, and possibly higher accounting costs. It can make sense if you want limited liability or plan to bring in partners.

The Canada Revenue Agency treats both structures as businesses for GST/HST purposes. The registration rules are the same. What changes is who files and how income is taxed. For a studio selling a few hundred prints a year, sole proprietorship is usually simpler.

If you teach workshops, your teaching income is also business income. Whether you operate as a sole proprietor or a corporation, you include it. The Canada Revenue Agency does not distinguish between selling a linocut and teaching someone how to carve one. Both are taxable supplies.

Starting a small business in Ontario includes registering your name, getting a business number, and understanding your tax obligations. The provincial guide walks through the steps, including permits and licensing that may apply to a studio. How to start a small business in Ontario is a useful checklist before you register with the CRA.

Step 2: apply for a business number with the Canada Revenue Agency

A business number (BN) is a nine-digit number that identifies your business to the Canada Revenue Agency. You need one to open a GST/HST account, a payroll account if you hire help, or an import account if you bring in a press from abroad.

You can apply online through the CRA's Business Registration Online service. You will need your social insurance number, your legal name, and the business address. If you are a sole proprietor, the BN is tied to your SIN but is not the same number.

Once you have a BN, you can add program accounts. For a printmaking business, the most common are the GST/HST account and, if you sell internationally, an import/export account. You can also authorize a representative, such as an accountant, to manage the account.

The CRA's page on getting a GST/HST number and managing your account explains how to register, how to add accounts, and how to update your information. Get a GST/HST number and manage your account covers the online process and what you need before you start.

If you already have a BN from a previous business, you can use the same number and add a GST/HST account. Do not apply for a second BN. That creates confusion and can delay refunds.

Step 3: work out whether you cross the GST/HST small supplier threshold

The GST/HST small supplier threshold is $30,000 in taxable supplies over four consecutive calendar quarters. If your revenue from prints, teaching, and other taxable sales stays below that, you are a small supplier and do not have to register.

The threshold is based on your total taxable supplies, not profit. If you sell $28,000 worth of prints in a year, you are under. If you sell $32,000, you cross it. Once you cross, you must register for GST/HST and start charging tax.

There is a nuance for artists. If you sell your own original art, some sales may be exempt. But prints are generally taxable.

The Canada Revenue Agency's guidance on when to register and start charging explains the small supplier rules and the exceptions. When to register and start charging the GST/HST - Canada.ca is the starting point.

If you are a small supplier, you can register voluntarily. That lets you claim input tax credits on your expenses. It also means you must charge HST on your sales. For a printmaker with low revenue, voluntary registration can be worth it if you buy a lot of supplies.

Track your revenue from the first sale. If you are close to the threshold, check each quarter. Crossing it mid-year triggers a requirement to register within a certain period. The CRA expects you to monitor this yourself.

Step 4: register for GST/HST and set your print prices

Once you register, you get a GST/HST account. You must charge 13% HST on most sales in Ontario. That includes prints, cards, and workshop fees. You collect the tax from your customer and remit it to the CRA, minus input tax credits.

Your print prices should account for HST. If you sell a print for $100 plus HST, the customer pays $113. If you want to receive $100, you need to charge $113 and remit $13. Many printmakers set prices that include HST, then calculate the tax backward.

Ontario HST rules apply to sales made in Ontario. If you sell online to someone in another province, the rules depend on the buyer's province and your revenue. For small suppliers, the place of supply rules can be complex.

The Ontario government's page on the Harmonized Sales Tax explains how HST works in the province. Harmonized Sales Tax | ontario.ca covers what is taxable and how to charge it.

When you price your work, include the cost of supplies. A finished cyanotype print has a cost that includes paper, chemistry, and your time. If you are not sure how to calculate that, the linked article can help you set a price that covers HST.

For linocut editions, the cost per print changes with the size of the edition. The guide to pricing linocut prints explains how to divide your costs so you do not lose money after tax.

Step 5: Ontario retail sales tax, HST and teaching income

Ontario no longer has a separate retail sales tax. It was merged into the HST in 2010. So there is no provincial retail sales tax for printmakers to charge separately. You charge HST, which includes the provincial portion.

That said, some sales may be exempt from HST. Original art sold by the artist is generally exempt if it meets certain conditions. But prints, reproductions, and teaching are taxable. If you sell a painting, it may be exempt. If you sell a print of that painting, it is taxable.

Teaching income is taxable. If you run a workshop on printmaking, you charge HST on the fee. If you teach through a community centre or gallery, they may collect the fee and pay you. In that case, you still report the income and remit HST if you are registered.

If you are a small supplier and not registered, you do not charge HST. But you still report the income on your tax return. Once you register, you must charge HST on all taxable sales, including teaching.

Keep your teaching and selling records separate. That makes it easier to calculate your taxable supplies and to show the Canada Revenue Agency how you arrived at your revenue. If you teach in multiple venues, track each one.

Rebates, input tax credits and chemistry bought for resale

When you are registered for GST/HST, you can claim input tax credits (ITCs) on purchases used in your business. That includes studio equipment, printing presses, inks, paper, and chemistry. You claim the GST/HST you paid on those purchases against the tax you collect.

Some purchases may qualify for a GST/HST rebate. A rebate is different from an ITC: it is a refund of tax you paid on certain items, often for non-profit organizations or for new housing. For a printmaking business, the main mechanism is the ITC.

The CRA's page on claiming a GST/HST rebate explains the categories. Claim a GST/HST rebate - Canada.ca has the details.

Chemistry bought for resale is treated differently. If you buy solvents or inks to resell to students, you can claim ITCs on the purchase. If you buy them for your own use, you can also claim ITCs if they are used in your commercial activity. But if you use them for personal purposes, you must apportion.

Shipping and customs affect your costs. If you import a press from the United States, you pay GST on the value at the border. That GST can be claimed as an ITC. The article on where to buy printmaking supplies in Canada without US customs fees covers how to avoid unnecessary charges.

If you are unsure what your supplies will cost next year, the review of what printmaking supplies may cost gives a sense of price trends. That helps you budget for HST and ITCs.

Disposing of chemistry is a business expense. If you pay for proper disposal, you can claim the GST/HST paid as an ITC. The guide to disposing of printmaking chemicals in Canada explains the rules and why you should not pour solvents down the drain.

Filing, deadlines and penalties for a small studio

Your filing frequency depends on your revenue. Most small suppliers file annually. If you are registered and your annual taxable supplies are under $1.5 million, you can file annually. You can also choose quarterly or monthly.

The deadline for annual filers is three months after your fiscal year end. If your year ends December 31, your return is due March 31. You must pay any balance owing by the same date. If you file late, the CRA charges a penalty and interest.

The penalty is a percentage of the amount owing, plus interest. If you have a refund, filing late may delay it. The CRA can also charge a penalty for failing to file on time even if you owe nothing. Set a calendar reminder.

You must keep records for six years. That includes sales invoices, purchase receipts, and bank statements. If you claim ITCs, you need the supplier's GST/HST number on the receipt. For small purchases under $30, the rules are less strict, but keep the receipt anyway.

If you make a mistake, correct it. The CRA has a voluntary disclosure program that can reduce penalties if you come forward before they contact you. For a small studio, a quick correction is better than waiting.

A checklist for your first year:

• Apply for a business number with the Canada Revenue Agency.
• Track taxable supplies each quarter to monitor the $30,000 small supplier threshold.
• Register for GST/HST once you cross the threshold or choose to register voluntarily.
• Set prices that include 13% HST and show the tax separately on invoices.
• Keep receipts for equipment and chemistry to claim input tax credits.
• File your GST/HST return by the deadline and pay any balance.
• Store records for six years.

Common questions

Do I need to register for GST/HST if I only sell a few prints? Only if your taxable supplies exceed the $30,000 small supplier threshold over four consecutive calendar quarters. Below that, registration is optional. If you register voluntarily, you can claim input tax credits.

Is teaching a printmaking workshop taxable for HST? Yes. Teaching is a taxable supply. If you are registered, you charge HST on the workshop fee. If you are a small supplier, you do not charge HST but you still report the income.

Can I claim the HST I paid on a new printing press? Yes, if you are registered and the press is used in your commercial activity. You claim the HST as an input tax credit on your GST/HST return. Keep the receipt.

What happens if I miss the filing deadline? The Canada Revenue Agency charges a penalty and interest on any amount owing. If you have a refund, it may be delayed. File as soon as you can to limit the damage.

Do I charge HST on prints sold to a customer in the United States? Generally, exports are zero-rated. You do not charge HST, but you must keep proof of export, such as a shipping receipt. Check the CRA rules for zero-rated supplies.

Is there a separate Ontario retail sales tax for printmakers? No. Ontario's retail sales tax was merged into the HST in 2010. You charge HST on taxable sales. There is no separate provincial sales tax to collect.