What Is a GST/HST Account (RT)? Retailer Registration And Purpose

GST/HST Account (RT) is the CRA program account used to administer Goods and Services Tax and Harmonized Sales Tax registration, returns, and remittances.

For retailers selling taxable goods and services in Canada, the GST/HST Account (RT) is the account type the Canada Revenue Agency (CRA) uses to identify and manage a business's GST/HST obligations. The RT suffix denotes an account used by registrants to charge, collect, report and remit GST/HST; it appears on the business number (BN) structure as the program account for GST/HST. Retailers use this account to file periodic returns, remit net tax owing, and claim input tax credits (ITCs) for business purchases.

Why The RT Account Exists

The RT account centralizes GST/HST activity for a business under the CRA’s BN system. It separates GST/HST administration from other program accounts (such as payroll or import/export) so that returns, remittances, audits and compliance activities are tracked specifically to value-added tax responsibilities.

When A Retailer Must Register

Retailers must register for a GST/HST Account (RT) when their worldwide taxable supplies exceed the small supplier threshold or when they voluntarily choose to register. Typical triggers include:

• Mandatory registration threshold: If worldwide taxable supplies exceed the CRA’s small supplier threshold (generally $30,000 over four consecutive calendar quarters), registration is required.
• Voluntary registration: Small retailers often register voluntarily to recover input tax credits on business purchases.
• Permanent establishment in Canada: Non-resident sellers with a Canadian presence or supplies into Canada may need to register.

What The RT Account Covers

• Charges and collections: Recording sales where GST/HST is collected from customers.
• Returns and remittances: Filing periodic GST/HST returns and remitting net tax owing.
• Input tax credits: Claiming ITCs to recover GST/HST paid on business purchases and expenses.
• Reporting adjustments: Handling credit notes, bad debts, and other adjustments that affect taxable supplies.

How The Account Is Structured

The RT account is part of the nine-character CRA business number structure: a nine-digit BN followed by a two-letter program identifier and a four-digit account number (e.g., 123456789 RT0001). The RT indicates GST/HST; the numeric suffix tracks multiple GST/HST accounts under one BN (useful for separate divisions or locations).

Practical Example For A Retailer

A small clothing retailer with annual taxable sales that exceed the small supplier limit registers and receives a BN with an RT account. Each quarter they collect HST from customers, file a quarterly RT return, remit the net amount owing, and claim ITCs on wholesale inventory purchases. If they later open a second store that requires a separate GST/HST account for accounting reasons, the CRA may assign RT0002 under the same BN.

Common Mistakes Retailers Make

• Missing registration timing: Waiting too long to register after passing the small supplier threshold can create penalties and interest.
• Collecting the wrong rate: Charging GST instead of HST (or vice versa) in mixed-rate jurisdictions leads to incorrect remittances.
• Improper ITC documentation: Failing to retain proper invoices and records risks disallowed ITC claims during audits.

In short, the GST/HST Account (RT) is the CRA program account that lets retailers register for GST/HST, file returns, remit tax owing, and claim ITCs. Proper setup, timely filings and accurate recordkeeping prevent penalties and allow retailers to recover eligible tax on business purchases.