When you must register
You are a small supplier, and not required to register, until your total taxable sales pass $30,000. The test is applied two ways: in any single calendar quarter, or over four consecutive calendar quarters. Taxable sales include zero-rated supplies, such as exports, and they count worldwide, not only sales inside Canada.
- If you pass $30,000 in a single quarter, you must start charging GST/HST on the sale that takes you over, and register within 29 days.
- If you pass $30,000 over four consecutive quarters, you stop being a small supplier at the end of the month after the quarter in which you exceeded it.
A rule of thumb like "$30,000 in any 12 months" is only approximate, because the test uses calendar quarters. Track it each quarter.
Voluntary registration
You can register even if you are under $30,000. The main benefit is that you can claim input tax credits (ITCs) for the GST/HST you pay on business expenses. This helps when your customers are other registered businesses, because they can recover the tax you charge, or when you have large start-up costs. The trade-off is that you must charge tax on your sales, file returns and keep records. Once you register voluntarily, you generally must stay registered for at least one year before you can cancel.
Rates by province
You charge the rate of the province where your customer is, based on the place of supply rules, not just where you are located.
| Province or territory | Rate |
|---|---|
| Ontario | 13% HST |
| Nova Scotia | 14% HST (since April 1, 2025) |
| New Brunswick, Newfoundland and Labrador, PEI | 15% HST |
| British Columbia | 5% GST, plus 7% PST charged separately |
| Quebec | 5% GST, plus 9.975% QST charged separately |
| Saskatchewan and Manitoba | 5% GST, plus provincial sales tax separately |
| Alberta and the territories | 5% GST |
British Columbia does not have a 12% HST, and Nova Scotia's HST is now 14%, not 15%. PST and QST are separate taxes with their own registration rules. In Quebec, QST is administered by Revenu Québec.
Input tax credits
An ITC lets you recover the GST/HST you paid on goods and services used for your business. You subtract your ITCs from the tax you collected and remit the difference. If your ITCs are higher, you get a refund. Most businesses have about four years to claim an ITC, and you must keep supporting records for six years. Keep proper invoices, and note that some expenses, such as certain meals, are only partly claimable.
Filing frequency
| Annual taxable supplies | Filing period |
|---|---|
| $1.5 million or less | Annual (monthly or quarterly optional) |
| Over $1.5 million to $6 million | Quarterly (monthly optional) |
| Over $6 million | Monthly |
Monthly and quarterly returns are generally due one month after the end of the period. Annual filers have three months after the fiscal year-end. Sole proprietors with a December 31 year-end who file annually pay by April 30 but have until June 15 to file. Late filing and late payment bring penalties and interest, so file even if you have nothing to pay.
The Quick Method
The Quick Method of accounting is a simplified way to calculate what you remit. Instead of tracking ITCs on most expenses, you remit a fixed percentage of your GST/HST-inclusive sales. To use it, your annual taxable revenue including tax must be $400,000 or less, you need a permanent establishment in Canada and you must have been operating for 365 days. Certain businesses cannot use it, including bookkeeping and tax or financial consulting, and legal and accounting professionals.
- In Ontario, the remittance rate is 8.8% of HST-inclusive sales for services and 4.4% for goods bought for resale.
- You get a 1% credit on the first $30,000 of eligible supplies each year.
- You generally cannot claim ITCs on operating expenses, though you can still claim them on capital assets.
- You elect through My Business Account or on Form GST74.
The method can leave you with more cash if your costs are low, as many service businesses' costs are, and less if you have large taxable purchases. Run the numbers for your own mix of sales and expenses.
How to register
You register for a GST/HST account through the CRA, often together with your business number. If you are setting up a new corporation, our business registration service can add GST/HST registration at the same time. Once registered, set up your invoices so they show your registration number and the tax charged, then decide on a filing period and a bookkeeping routine. Our accounting and tax team can prepare and file returns for you.
Related reading: Ontario vs federal incorporation and receiving international payments as a freelancer, which covers exports. Questions? Contact us.
Official sources: when to register and charge GST/HST, which rate to charge and the Quick Method guide.