You are a small supplier, and do not have to register for GST/HST, as long as your worldwide taxable revenue stays at C$30,000 or less in a single calendar quarter and over the trailing four quarters. Cross that line and you have 29 days to register, and GST/HST applies from that date, including on the sale that tipped you over.
The C$30,000 test, in practice
The Canada Revenue Agency runs two checks at once, not one. You are still a small supplier only if your revenue is C$30,000 or less in the current calendar quarter, and C$30,000 or less across the last four consecutive calendar quarters combined. A freelancer who bills well over the threshold in one busy quarter fails the first test that quarter, even if the trailing year is quieter. A business that grinds up slowly, adding a few thousand dollars a quarter, can fail the four-quarter test before any single quarter looks alarming on its own.
Either failure ends the small supplier exemption. There is no partial year grace period and no rounding down. The CRA counts worldwide taxable supplies, so revenue from clients outside Canada counts toward the threshold too, even though you may not charge GST/HST on all of it.
Some businesses register voluntarily before they hit C$30,000. That has a cost (you must then charge and remit GST/HST on everything taxable) and a benefit (you can claim input tax credits on GST/HST paid on business purchases). For a business already carrying meaningful expenses, that trade sometimes pays for itself well before the threshold forces the issue.
What happens the day you cross it
Registration is not something you can quietly get to next month. Once your revenue crosses the small supplier threshold, you have 29 days from your effective date of registration to register with the CRA. The clock does not wait for you to notice; it starts on the date you cross, not the date you check your books.
The part that catches owners out: GST/HST applies from your effective date of registration, which can be earlier than the date you actually complete the paperwork. That means the invoice or sale that pushed you past C$30,000 is itself taxable, retroactively, even if you issued it before you registered. Businesses that discover the threshold weeks or months late sometimes owe GST/HST on sales they never charged tax on, with no way to go back and collect it from a client who already paid the original invoice.
Registering also means you need a CRA Business Number to attach the GST/HST program account to, if you do not already have one from incorporating or another program registration.
Which rate to charge, once registered
Once registered, the rate depends on where the supply is made, not where your business is based. The federal GST rate is 5% in provinces and territories that do not use the Harmonized Sales Tax. Five provinces harmonize GST with a provincial component into a single HST rate: Ontario at 13%, Nova Scotia at 14% (reduced from 15% effective April 1, 2025), and New Brunswick, Newfoundland and Labrador and Prince Edward Island each at 15%. A business selling into more than one province needs to track place-of-supply rules carefully, since the same product can carry a different rate depending on the buyer's location.
Filing once you are registered
Filing frequency is set by annual taxable revenue, not by choice. Annual filing applies at C$1,500,000 or less in taxable supplies, quarterly filing applies from C$1,500,000 up to C$6,000,000, and monthly filing applies above C$6,000,000. A newly registered small business usually lands in the annual bracket, which still means keeping GST/HST collected and paid separate from operating cash all year, so the year-end remittance does not arrive as a surprise.
This is also where clean books earn their keep. If your bookkeeping tracks GST/HST collected on sales and GST/HST paid on purchases as its own running balance, filing is a reconciliation exercise. If it does not, filing becomes a reconstruction project, usually done under deadline pressure. See how our monthly close works for how that tracking gets set up inside QuickBooks Online or Xero from the first month, so the numbers are ready when a filing deadline lands, not assembled after the fact.
We prepare GST/HST filing support as part of that same monthly close; final filing-for-others work routes through the appropriate registrant channel. If you want a sense of what this costs before your books cross the threshold, our pricing page shows draft rates in Canadian dollars, and our bookkeeping cost calculator gives a quick estimate based on your transaction volume.
FAQ
Does the C$30,000 threshold include GST/HST itself?
No. The threshold is measured on taxable revenue before tax, and it covers worldwide taxable supplies, not just sales inside Canada. Revenue from exempt supplies is excluded from the calculation.
Can I register for GST/HST before I hit C$30,000?
Yes, voluntary registration is allowed at any revenue level. Once registered voluntarily, you must charge and remit GST/HST on your taxable supplies the same as a business that crossed the threshold, and you can claim input tax credits on eligible business purchases.
What if I cross the threshold but do not register within 29 days?
You still owe GST/HST from your effective date of registration, which can predate the day you actually register. Late registration does not delay the tax obligation; it usually just means reconstructing what should have been charged.
Does every province charge the same GST/HST rate?
No. Provinces and territories outside the five HST-harmonized provinces charge the 5% federal GST rate. Ontario charges 13% HST, Nova Scotia charges 14% HST (reduced from 15% effective April 1, 2025), and New Brunswick, Newfoundland and Labrador and Prince Edward Island each charge 15% HST.
This is general information, not specific guidance for your situation.
Sources
- GST/HST
- small business
- Canada