After years of study, Martin believes that he has developed a process for making perfect macaroons. He also believes that there is significant demand for these tasty treats. Martin follows through on his belief and begins to carry on a business as a sole proprietor on March 1, 2022, on the opening of a retail store under the name "Martin’s Macaroons" in a mall in Edmonton, Alberta.
All sales are at this mall, where customers may purchase macaroons either singly or in packages of three.
His business will have a calendar-based fiscal year ending December 31. All of the sales will be in Alberta. Martin wishes to delay registering for GST for as long as possible.
Martin’s Macaroons had monthly sales for 2022 as follows:
Month Sales
March $ 2,420
April 4,650
May 13,780
June 13,240 ($34,090)
July 13,780
August 15,760
September 16,480
October 16,670
November 18,490
December 21,750
Required:
A. Indicate the date on which Martin’s Macaroons will be required to start collecting GST and the date by which Martin will be required to register.
B. Assume that Martin’s Macaroons has elected to file GST on a quarterly basis. Calculate the GST collectible for each quarter of 2022 and specify the due date of each GST return and payment.
C. Assume that Martin’s Macaroons files GST on an annual basis. Calculate the GST collectible for 2022 and specify the due date of the GST return and payment.
D. Assume that in January 2022 Martin comes to you for advice on when he should register for the GST. What factors should he consider?