When do I need to register for GST/HST in Canada?
You are required to register for GST/HST once your total taxable revenues exceed $30,000 in a single calendar quarter or over the last four consecutive quarters. If you are a small supplier earning under $30,000 you can still register voluntarily to claim input tax credits.
Detailed Explanation
The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) are consumption taxes administered by the Canada Revenue Agency (CRA). GST is 5% and applies federally across Canada. HST combines the federal GST with a provincial sales tax into a single rate and applies in participating provinces.
HST provinces and their current rates (2026)
- Ontario: 13% (5% federal + 8% provincial)
- New Brunswick: 15% (5% + 10%)
- Nova Scotia: 15% (5% + 10%)
- Prince Edward Island: 15% (5% + 10%)
- Newfoundland and Labrador: 15% (5% + 10%)
All other provinces and territories use GST at 5% plus their own provincial sales tax (PST), which is administered separately by the province (BC, Saskatchewan, Manitoba) or have no provincial sales tax (Alberta, Yukon, Northwest Territories, Nunavut). Quebec administers its own Quebec Sales Tax (QST) at 9.975%, collected separately by Revenu Quebec rather than the CRA.
The $30,000 small supplier threshold
You are a small supplier and do NOT need to register for GST/HST if your total taxable revenues (before GST/HST) do not exceed $30,000 in: - Any single calendar quarter (January-March, April-June, July-September, October-December), OR - Over the last four consecutive calendar quarters combined
Once you exceed $30,000 in either window, you are no longer a small supplier and must register for GST/HST. You have 29 days from the date you exceed the threshold to apply.
Note: The $30,000 threshold applies to TAXABLE supplies. Exempt supplies (such as most healthcare, educational services, and residential rent) and zero-rated supplies (such as basic groceries, prescription drugs, and exports) do not count toward the threshold.
Voluntary registration
Even if you are under $30,000, you can register voluntarily. This makes sense if: - You have significant business expenses with GST/HST embedded in them (equipment, software, office supplies) and want to claim input tax credits (ITCs) to recover that tax - Your customers are other businesses that can themselves claim ITCs (making the GST/HST you charge cost-neutral to them) - You want to appear more established — being GST/HST registered signals an active business
What are Input Tax Credits (ITCs)?
When you are registered for GST/HST, you collect GST/HST from customers and remit it to the CRA. However, you can also claim back the GST/HST you paid on business purchases. The net amount you remit is GST/HST collected minus ITCs claimed.
For example: you collect $2,500 in HST from clients (Ontario rate 13% on $19,230.77 of billings), and you paid $650 in HST on business expenses. You remit $2,500 - $650 = $1,850 to the CRA.
To claim an ITC, you need a valid receipt or invoice showing the supplier's GST/HST registration number, the amount paid, and the HST/GST charged.
Taxable vs exempt vs zero-rated supplies
Not all business income attracts GST/HST: - Taxable supplies (charge 5%/13%/15%): most goods and services, professional fees, construction, software, advertising - Zero-rated supplies (charge 0%, but you can still claim ITCs): basic groceries, prescription drugs, medical devices, exports - Exempt supplies (no GST/HST charged, no ITCs claimed on related costs): residential rent, most healthcare, legal aid services, certain financial services
How to register
You register for a GST/HST account through the CRA's My Business Account portal online, by phone (1-800-959-5525), or by mailing Form RC1 (Request for a Business Number). Registration gives you a Business Number (BN) with a RT0001 suffix for GST/HST purposes. The BN is a 9-digit number that also serves as your corporate income tax account identifier.
Sole proprietors vs corporations
If you incorporate, the corporation gets its own GST/HST registration separate from any personal GST/HST registration you held as a sole proprietor. Revenues from both entities count separately against their respective thresholds.
Source: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/account-register.html
Real-World Examples
Freelancer crossing the threshold mid-year
A graphic designer earns $8,000 per quarter for Q1 and Q2 (total $16,000). In Q3 they land a large contract and earn $22,000, bringing the rolling 4-quarter total to $38,000. They have exceeded $30,000 over 4 consecutive quarters and must register within 29 days of the date they crossed $30,000 in Q3.
Consultant voluntarily registering below the threshold
A management consultant earns $25,000 per year but spends $8,000 on software, equipment, and office supplies, all subject to HST. Without registration she cannot claim back $1,040 in HST paid on those expenses. By registering voluntarily she recovers the $1,040 in ITCs and charges 13% HST to her business clients (who can claim it back as an ITC themselves — net cost to them is zero).
Ontario corporation with HST obligations
A small software company incorporated in Ontario charges $50,000 for SaaS services. All revenue is taxable at 13% HST. They collect $6,500 in HST ($50,000 x 13%). They paid $2,000 in HST on business expenses (servers, marketing, office). They remit $6,500 - $2,000 = $4,500 to the CRA on their quarterly HST return.
Common Mistakes to Avoid
- Waiting until the 4-quarter rolling total hits $30,000 and missing that a single quarter exceeding $30,000 triggers immediate registration.
- Forgetting to charge HST on invoices after exceeding the threshold — you owe the tax to the CRA even if you failed to collect it from clients.
- Not keeping valid receipts with the supplier's GST/HST registration number — ITCs can be disallowed on CRA audit if documentation is missing.
- Treating residential rent as taxable — long-term residential rents are GST/HST exempt, meaning you cannot charge HST on rent and cannot claim ITCs on expenses related to exempt supplies.
Frequently Asked Questions
Does the $30,000 threshold apply per province or nationally?
The $30,000 small supplier threshold applies to your total taxable revenues nationally across all provinces and territories. It is not a per-province threshold. If you have clients in multiple provinces and your combined taxable revenues exceed $30,000, you must register regardless of how the revenues are distributed.
Do I charge GST or HST to clients outside my province?
The rate of GST/HST depends on the province where the supply is made (place of supply rules). For services, the rate generally follows the province where the customer is located. So if you are in Alberta (5% GST) and provide services to a client in Ontario, you typically charge 13% Ontario HST. Always consult CRA's place of supply rules for your specific type of service.
What is the difference between GST/HST and Quebec's QST?
Quebec applies 5% GST (federal, administered by CRA) plus 9.975% Quebec Sales Tax (administered by Revenu Quebec). Unlike HST provinces where there is a single combined rate, Quebec businesses must register for both GST and QST separately if they exceed their respective thresholds. Revenu Quebec collects both taxes on behalf of the federal government in Quebec.
If I deregister from GST/HST can I re-register?
Yes, but there are restrictions. If you deregister voluntarily, you must wait at least one year before re-registering voluntarily. If your revenues subsequently exceed the $30,000 threshold, you are required to re-register regardless of the one-year rule. De-registration also triggers self-supply rules on certain assets, potentially resulting in GST/HST payable on the fair market value of assets held.
Does charging GST/HST make my prices less competitive with non-registered competitors?
For B2B sales, no — your business clients claim back the GST/HST as an ITC, so your price to them is effectively the same. For B2C sales to end consumers, yes — a non-registered competitor can offer a 13% lower price in Ontario. This is one reason why some self-employed individuals below the threshold choose not to register voluntarily when serving mostly individual consumers.
Practical Tips
- Track your rolling 4-quarter revenue in a spreadsheet so you catch the $30,000 threshold well in advance — surprise registrations mean you may have been charging clients without HST who now need amended invoices.
- Set up a separate bank account or savings bucket for GST/HST collected — it is not your money; it belongs to the CRA, and spending it before the remittance deadline creates cash flow problems.
- If you use the Quick Method of accounting (available to businesses under $400,000 annual revenue), you remit a fixed percentage of HST-inclusive revenues rather than tracking ITCs on every expense — this simplifies bookkeeping significantly.
- Always include your GST/HST registration number on every invoice — clients need it to claim their ITCs, and missing registration numbers are the most common reason ITCs are disallowed on audit.
Ask Finn your Canada accounting questions
Finn knows Canada Revenue Agency (CRA) rules and your specific business numbers. Get instant answers in plain English.
Try free for 14 days