Registering for Canada Federal sales tax can seem tricky, especially when figuring out the right dates. This guide simplifies how Kintsugi determines your nexus date and what date to use for registration.
What is the Nexus Date?
The nexus date is when your business meets the sales threshold that requires you to register for Canada Federal sales tax. Kintsugi calculates this date based on your global sales volume, not just sales in Canada.
Why is the Date in Kintsugi Different From My Canada Sales Start Date?
You might see an earlier nexus date in Kintsugi (e.g., April 2023) than when you started selling in Canada (e.g., June 2024). This is because Kintsugi first looks at your total sales across all regions to determine when you crossed the nexus threshold.
Key Takeaway: Kintsugi uses global sales to find the initial nexus date.
What Date Should I Use for Canada Federal Sales Tax Registration?
The date you use for official registration is not the initial nexus date based on global sales. Instead, use the date of your first sale in Canada after meeting the global nexus threshold.
Example:
Kintsugi shows your nexus was met in April 2023 (based on global sales).
Your first sale in Canada was in June 2024.
You should use June 2024 for your official Canada Federal sales tax registration.
Key Takeaway: Use the date of your first Canadian sale after the global nexus threshold was met.
How Kintsugi Is Making This Clearer
We're improving Kintsugi to provide both dates:
Nexus Met Date: The date based on your total global sales.
First Canadian Transaction Date: The date you should use for registration..
Quick Summary
Concept | What It's Used For | Based On | Example |
Nexus Met Date | Internal threshold calculation | Global sales | April 2023 |
Effective Date of Registration | Official tax registration | First CA transaction after threshold | June 2024 |
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