The $30,000 threshold, voluntary registration, how to register, and what rate to charge in each province
Every Canadian business that sells goods or services needs to know the GST/HST registration rules. Register too late and you owe back taxes out of your own pocket. Register voluntarily when you are small and you can recover the GST/HST you pay on your own business expenses. Here is everything you need to know.
You must register for GST/HST when your total taxable revenues exceed $30,000 in any single calendar quarter or in four consecutive calendar quarters. CRA calls this crossing the "small supplier" threshold.
The moment you exceed $30,000 you are required to register — you cannot wait until year-end. You must register within 29 days of the transaction that pushed you over the threshold, and you must start collecting GST/HST immediately.
If you should have registered but did not, CRA can assess GST/HST on all your sales from the date you should have registered — and you cannot go back and collect that GST/HST from past customers. You pay it out of your own revenue. Penalties and interest also apply on late registration.
Even if your revenue is under $30,000, you can register voluntarily at any time. Many small businesses benefit from registering early:
Example: You earn $20,000 in year one but spend $15,000 on equipment and software. That equipment had $1,950 in HST (Ontario 13%). By registering voluntarily, you can claim $1,950 back as an ITC — even though you did not collect any HST from clients.
The rate you charge depends on the province where your customer is located (the "place of supply"), not where your business is located:
| Province / Territory | Tax Type | Total Rate |
|---|---|---|
| Ontario | HST | 13% |
| British Columbia | GST + PST | 5% GST + 7% PST = 12% |
| Alberta | GST only | 5% |
| Nova Scotia | HST | 15% |
| New Brunswick | HST | 15% |
| Newfoundland & Labrador | HST | 15% |
| Prince Edward Island | HST | 15% |
| Quebec | GST + QST | 5% GST + 9.975% QST = 14.975% |
| Manitoba | GST + RST | 5% GST + 7% RST = 12% |
| Saskatchewan | GST + PST | 5% GST + 6% PST = 11% |
| Territories (YT, NT, NU) | GST only | 5% |
Note: PST, RST, and QST are provincial taxes administered separately from GST/HST. Registering for GST/HST does not automatically register you for these provincial taxes — you may need to register with your province separately if you have nexus there.
Call CRA Business Enquiries at 1-800-959-5525. Have your SIN or BN, business name, and contact information ready.
Complete Form RC1 (Request for a Business Number). Processing takes 4–6 weeks — not recommended if you need to start collecting immediately.
CRA assigns a reporting period based on your annual taxable supplies:
| Annual Taxable Revenue | Required Reporting Period |
|---|---|
| Under $1.5 million | Annual (can elect quarterly or monthly) |
| $1.5 million to $6 million | Quarterly |
| Over $6 million | Monthly |
Annual filers with refunds: If you consistently receive GST/HST refunds (your ITCs exceed the GST/HST you collect), elect monthly or quarterly reporting so you get your refunds faster instead of waiting until year-end.
If your annual taxable revenues are under $400,000, you may qualify for the GST/HST Quick Method. Instead of tracking every ITC individually, you remit a flat percentage of your gross revenues (including GST/HST collected). The flat rates are lower than the actual GST/HST rate, so you keep the difference.
Quick Method rates for service businesses in HST provinces (e.g., Ontario at 13% HST):
This significantly reduces your bookkeeping burden and often results in a lower net HST payment than the standard method.
Whether you are just starting out or managing multi-provincial sales, a Smart Canada Tax advisor can ensure your GST/HST obligations are handled correctly.
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