If you have branches or divisions, you may apply to have each one designated a small-supplier division for the purposes of the rule pertaining to small suppliers. If the application is approved, the branch or division will not be required to collect or remit GST and QST when it makes taxable sales or supplies (other than certain taxable sales of immovables).

Similarly, it will not be entitled to input tax credits (ITCs) or input tax refunds (ITRs) for the taxes paid on its purchases. A branch or division may qualify as a small-supplier division if it meets the following conditions:

• Its taxable supplies worldwide did not exceed $50,000 during a given calendar quarter as well as all four calendar quarters immediately preceding that quarter.
• It is distinguishable from other branches or divisions by its location or the nature of its activities.
• Its records, books of account and accounting systems are maintained separately from those of other branches or divisions.
• An earlier designation, if applicable, was not revoked in the previous 365-day period.

To apply for designation as a small-supplier division, you must complete form FP-631-V, Application by a Public Service Body to Have Branches or Divisions Designated as Small Supplier Divisions.

An unincorporated organization may elect to be considered a branch or division of another unincorporated organization of which it is a member, rather than as a separate person. In that case, the GST and QST do not apply to supplies of property or services between the two organizations. To make such an election, you must complete form FP-632-V, Application by an Unincorporated Organization to Be Considered a Branch of Another Unincorporated Organization.