A business number (BN) is a unique identifier assigned to a business by the Canada Revenue Agency (CRA) for tax purposes. In Ontario, a BN is required for businesses that operate within the province and need to register for various taxes, such as the Harmonized Sales Tax (HST) and the Employer Health Tax (EHT).
The BN is a key component of the CRA's Business Registration Online (BRO) system, which allows businesses to register for various federal and provincial taxes, including the HST and EHT, as well as for other government programs and services. The BRO system is a one-stop shop for businesses, as it allows them to easily access the information and services they need to comply with tax laws and regulations.
The BN is also used to track business activities and transactions, such as sales and purchases, which helps the CRA to ensure that businesses are complying with tax laws and regulations. It also enables the CRA to provide businesses with relevant information and services, such as tax forms and guides, as well as to communicate with businesses through mail and email.
In Ontario, businesses that need to register for the HST and EHT must obtain a BN. The HST is a consumption tax that applies to most goods and services in Ontario, while the EHT is a payroll tax that applies to businesses with a payroll over $450,000.
To obtain a BN, businesses must complete the Business Registration Application, which is available online through the CRA's website. The application requires businesses to provide information such as their legal name, business address, and contact information, as well as information about their business activities and taxes they need to register for.
Once a BN is obtained, businesses must keep their contact information and business activities up to date with the CRA. This can be done through the BRO system, which allows businesses to easily update their information and register for new taxes and services as needed.
It is important to note that failure to register for a BN, or failure to keep your BN information up to date, can result in penalties and fines. The CRA has the authority to impose penalties for non-compliance, including fines and penalties for failing to register or maintain accurate information.
In addition, businesses that operate in multiple provinces or territories must obtain a BN for each province or territory in which they operate, as each province or territory has its own tax laws and regulations.
In conclusion, a Business Number Ontario is a unique identifier assigned to a business by the CRA for tax purposes. It is a key component of the CRA's BRO system and is required for businesses that operate in Ontario and need to register for various taxes, such as the HST and EHT. Obtaining a BN is an important step for businesses, as it enables them to easily access the information and services they need to comply with tax laws and regulations, and failure to obtain or maintain a BN can result in penalties and fines.
