Definition
A business number (BN) is the nine-digit number the Canada Revenue Agency assigns to a business to identify it for federal tax programs. Program accounts are added to it, such as RT for GST/HST and RP for payroll. A GST/HST registration number looks like 123456789 RT0001 and appears on GST/HST invoices.
Also called: BN, CRA business number, GST/HST registration number, RT0001
Business number (BN) in practice
Sole proprietors, partnerships, and corporations get a BN when they first register for a CRA program account. Corporations receive one automatically on incorporation, with an RC account for corporate income tax.
For sales of $100 or more, the invoice must show your GST/HST registration number and the tax charged for the buyer to claim input tax credits. Sales of $500 or more also need the buyer's name, a description of the supply, and the payment terms.
Clients can confirm a GST/HST number with the CRA's online GST/HST registry before paying an invoice that charges tax. Quebec businesses also have an NEQ from the provincial enterprise registrar and a QST number from Revenu Québec.
Example
A Calgary IT contractor's invoice shows "GST/HST: 123456789 RT0001" under her business name, followed by the 5 percent GST line.
Frequently Asked Questions
Is my BN the same as my GST number?
The first nine digits are the same. Your GST/HST number is the BN followed by RT and a four-digit reference, usually RT0001.
Do I need a BN to invoice clients in Canada?
Not always. A sole proprietor who is not registered for GST/HST and has no employees may not need one. You need a BN once you register for GST/HST, payroll, or import-export.
Related terms
- Tax ID A tax ID is the number a tax authority assigns to a business for reporting and collecting taxes.
- GST GST (goods and services tax) is a broad consumption tax applied to most goods and services, functioning like VAT.
- HST HST (harmonized sales tax) is a single sales tax that combines the 5 percent federal GST with a provincial sales tax in Ontario and the four Atlantic provinces.
- PST PST (provincial sales tax) is a sales tax charged by some Canadian provinces on top of the 5 percent federal GST, in provinces that have not harmonized with it.
- Small supplier A small supplier is a Canadian business whose worldwide taxable sales, together with those of associated businesses, are $30,000 or less over four consecutive calendar quarters.
- EIN An EIN, or Employer Identification Number, is a nine-digit number the IRS assigns to a business to identify it for federal tax purposes in the United States.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.