Can some one tell me about benifits, rules or any info on tradespersons (flooring installers) charging GST..?

on services in CANADA?
Does charging GST require them to claim the GST rebate? Is it like rental property owners where it allows them to claim GST on tools/ materials purchased but they have to claim it as income at the end of the year?

ANY info would be much appreciated. Neither of us know anything about it. I am trying to help a soon to be on his own installer figure this out.

If his gross income is over $30,000, he will not be a small supplier, and then MUST register and charge GST. Below that amount, he can register on his own. Once he registers, he has to charge, and remit the GST.

When you charge GST you have to remit it. The good news is you get to claim the GST on your expenses as well, and only send the difference to the government. The GST you are claiming would be called an input tax credit, and not a rebate. The quick method is an option, as someone mentioned, but I haven't generally found it to be the best option in most cases. If you'd be saving the cost of an accountant, it might work out, though if you are having an accountant do his income taxes anyway, much of the work will done anyway.

Your use of the word rebate has me puzzled. The new housing rebate would not apply to your son's situation, as he isn't building or substantially renovating home. Even if he is working for a home builder, they'll take care of the New Housing Rebate. The other rebates that are available apply to Public Service bodies, which again, doesn't apply.

Also, as for rental property owners getting to claim GST back...only commercial property attracts GST on its rent. Residential rents are exempt from GST, and therefore that type of business is not allowed to register for GST (and can't claim any ITCs).

There is a guide for registrants, and most tax services offices have a FREE course for small businesses that you can sign up for.

Seminars:
http://www.cra-arc.gc.ca/events/menu-e.h...

GST Guide:

http://www.cra-arc.gc.ca/E/pub/gp/rc4022...

General Business links (don't forget there is income tax too)

http://www.cra-arc.gc.ca/tax/business/me...

Once you register for the GST/HST you are assigned a filing period (monthly, quarterly or annually). Of you are expecting to have lots of costs, then I would suggest you opt for the monthly or quarterly filing (depending on you love of paperwork).

When you are filing a return, you determine net tax. This is the GST/HST that you collected minus all the input tax credits (the GST that you paid on your supplies, materials, etc.). Whatever is the balance (plus = you pay; minus number = a refund) you are done for that period. There is no requirement to include any refund that you got back into income at the end of the year.

If you are a quick method filer (a special way to calculate your GST liability) then there will be an income to you at year end. However, based on your industry, I would not recommend that you take that route at all.

The easiest thing to do is just set up a spreadsheet for sales and another for purchases. Enter everything into these sheets, separating the principal amount from the GST/HST and then total the columns at the end of each reporting period.

Word of warning, if you are using a vehicle for the business, be sure to keep a travel log (record of kilometres driven for business purposes).