Sam began a small seasonal business in Prince Edward Island on July 1st, 20x7. He began operations slowly during the off-season, prior to a larger sale between October and March. Sam's sales of taxable supplies per quarter for the first fifteen months are provided here:
Required:
Apply the 'sales in quarter' and 'cumulative sales' tests to determine when Sam was required to become an HST registrant. Show your calculations and answer the following:
A. When did Sam lose his small supplier status?
B. What date was Sam required to start collecting HST?
C. By what date was Sam required to become an HST registrant?

Question

Sam began a small seasonal business in Prince Edward Island on July 1st, 20x7. He began operations slowly during the off-season, prior to a larger sale between October and March. Sam's sales of taxable supplies per quarter for the first fifteen months are provided here:
  Required:
Apply the 'sales in quarter' and 'cumulative sales' tests to determine when Sam was required to become an HST registrant. Show your calculations and answer the following: 
A. When did Sam lose his small supplier status?
B. What date was Sam required to start collecting HST?
C. By what date was Sam required to become an HST registrant?

Quizplus · Accepted Answer

The Answer is

A) Sam's sales have surpassed the $30,000 threshold in the January - March, 20x8 quarter under the cumulative sales test. Therefore, his small supplier status was lost on April 30^th, 20x8 (the end of the first month following this quarter). B) Sam was required to start collecting HST on May 1^st, 20x8. C) Sam needed to be registered prior to May 30^th, 20x8.

Sam Began a Small Seasonal Business in Prince Edward Island