The Canada Revenue Agency has issued this notice to explain when a listed financial institution (LFI), including a selected listed financial institution (SLFI), is required to be registered for the GST/HST under the Excise Tax Act (ETA), and when an LFI, including an SLFI, may voluntarily register for GST/HST purposes.
Generally, every person who makes a taxable supply in Canada in the course of that person’s commercial activity is required to register for GST/HST. Certain SLFI investment plans are also required to be registered under proposed subsections 240(1.2) and (1.3). Where an LFI, including an SLFI, is not required to be registered, it may voluntarily register under subsection 240(3) in certain circumstances, including where an LFI is resident in Canada.
An LFI, (including an SLFI that has not made a consolidated filing election) should complete form RC1, Request for a Business Number (BN) or form RC1A, Business Number (BN) – GST/HST Account Information, if the LFI already has a BN. When an LFI registers for GST/HST, an LFI should indicate their major business activity under part A4 of form RC1 or under part 5 of form RC1A and indicate if they are an LFI or an SLFI.
The notice also provides further details on the reporting and filing requirements for registrant and non-registrant LFIs and SLFIs.