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If your business is a sole proprietorship or partnership, you can use Form T2125, Statement of Business or Professional Activities to report your income and expenses. This from is included in your T1 income tax form package.
If you operate a business in the form of sole proprietorship, you pay taxes by reporting business income (or loss) on your personal tax return. There is no separate tax return for you business. The business income (or loss) forms part of your overall income for the year.
Inventory generally refers to the total value of the goods on hand that a business intends to sell, uses for manufacture, or uses t render a service.
Payroll deductions are income tax deductions, Canada Pension Plan (CPP), or Quebec Pension Plan (QPP) contributions, and Employment Ensurance (EI) Premiums which are deducted from an employee’s wages or salary and sent regularly to the Canada Revenue Agency (CRA).
A passenger vehicle is a motor vehicle designed or adapted primarily to carry people on highways and streets. It seats a driver and no more than eight passenger.
A Business Number is a nine-digit business identifier. It is assigned to you by the Canada Revenue Agency (CRA) when you registered at least one of the four CRA business accounts.
Social insurance number (SIN) is a number given to each contributor to the Canada Pension Plan, Quebec Pension Plan, and Employment Insurance.
Instalments are periodic payments of income tax that individuals are required to pay to the Canada Revenue Agency (CRA) to cover tax they would otherwise have to pay on April 30.
Notice of assessment is a form that the Canada Revenue Agency (CRA) sends to taxpayers and GST/HST registrants after the CRA processes their returns.
If you are a small supplier, you are not required to charge your customers GST/HST and you cannot claim ITCs. However, you can choose to register voluntarily.