In order to terminate your GST account, you need to complete form RC145 - Request to Close Business Number (BN) Accounts - provided by the CRA. The completed form can be either mailed or faxed to your tax services office.
There are a few things you need to be aware of before you cancel your GST/HST account as there will be a financial impact.
1. When you are a small supplier, you must have your GST/HST account open for at least twelve months before you can close/cancel your registration.
2. When you cancel your registration, any non-capital property held in supply is deemed to be sold/disposed of at fair market value (FMV). You will be responsible for collecting GST/HST on these items and reporting/remitting it to CRA on your last return.
3. Any capital property the business owns is considered / deemed sold under change of use rules. You must self assess and pay GST/HST at that time because you have changed the primary use from commercial to non-commercial.
4. If you have any prepaid arrangements, you must adjust your final return for any input tax credits provided after you close your account.
“Please note that the information provided in this article is of a general nature and may not be accurate for your specific situation. The information is current as of the date of posting and is not intended to provide legal advice. It's always recommended that you consult with a professional accountant and lawyer for personalized guidance and advice."