If a supplier charges you GST/HST, you generally get to claim that tax back as an input tax credit, but only if the supplier is actually registered. That is why it is worth knowing how to confirm a GST/HST number before you rely on it.
The good news: the Canada Revenue Agency runs a free tool for exactly this, and the check takes under a minute.
Why confirming matters
When you claim an input tax credit, you are telling the CRA that the GST/HST you paid was charged by a registered business. If that supplier turns out not to be registered, the CRA can deny your credit, and the cost lands back on you. Confirming the number protects the credits you claim, especially on large invoices or with a new supplier you have not dealt with before.
How to confirm a GST/HST number
Use the CRA's GST/HST Registry, a free online tool. To run a check you need three things:
- The GST/HST number shown on the supplier's invoice (the nine-digit business number followed by RT and four digits).
- The supplier's business name exactly as it appears on the invoice.
- The transaction date you want to confirm registration for.
The registry compares what you enter against the CRA's records and tells you whether the number was registered and valid on that date. It does not reveal the business's other tax details; it only confirms the registration itself.
What the result tells you
A match means the number was registered and active on the date you entered, and your input tax credit for that invoice rests on solid ground. A non-match usually means one of three things: the number was typed incorrectly, the business name does not match the registration exactly, or the supplier is not actually registered for GST/HST.
If a number does not check out
If you cannot confirm a supplier's number, ask them for their correct GST/HST registration details before you pay tax on the invoice. A registered business will have no trouble providing it. If they are not registered, they should not be charging you GST/HST at all, and you should not be claiming a credit for it.
Confirming numbers is part of keeping your own GST/HST filings clean. If you are setting up a corporation and want your business number and GST/HST account registered correctly from the start, Korporex sets both up as part of the online incorporation filing.