When to Register for GST/HST: The $30,000 Threshold Explained
One of the first tax questions every new Canadian business owner asks: do I need to charge ? The answer depends on a single number. If your revenue exceeds $30,000 in any four consecutive calendar quarters, you must register. Below that, you're a and registration is optional. The CRA's when-to-register page defines the rule in full.
But optional doesn't mean you shouldn't. Here's the full picture.
Decision
Have your taxable supplies crossed $30,000 over the last 4 quarters?
You must register within 29 days
Start charging GST/HST on invoices from your effective date. The CRA backdates registration to the day you crossed.
You're a small supplier, registration optional
Voluntary registration can still be worth it if you buy a lot of GST/HST-taxable inputs. Read on.
The Small Supplier Rule
A small supplier is a business that earned $30,000 or less in taxable supplies over the last four consecutive calendar quarters. If you qualify as a small supplier, you are not required to collect or remit GST/HST.
The moment your revenue crosses the $30,000 threshold, you must register for a GST/HST account and begin charging tax. You have 29 days from the date you exceed the threshold to register.
| Scenario | Registration Required? |
|---|---|
| Revenue under $30,000 (last 4 quarters) | No (optional) |
| Revenue exceeds $30,000 in a single quarter | Yes, immediately |
| Revenue exceeds $30,000 over 4 consecutive quarters | Yes, within 29 days |
| Taxi/ride-sharing business | Yes, regardless of revenue |
| Non-resident performing in Canada | Yes, regardless of revenue |
Important: The $30,000 threshold applies to revenue (taxable supplies), not profit. Expenses don't reduce this number.
What Counts Toward the $30,000?
Not all revenue counts. The threshold includes taxable supplies (goods and services that would be subject to GST/HST if you were registered) and zero-rated supplies (taxable at 0%, like basic groceries or exported goods).
It does not include exempt supplies such as:
- Financial services (certain types)
- Residential rent
- Most health and dental services
- Childcare services
If you're a consultant, developer, designer, or other service provider, virtually all your revenue counts.
Why You Might Want to Register Early
Even if you're under $30,000, voluntary registration often makes financial sense. Here's why.
Input Tax Credits (ITCs)
Once registered, you can claim on the GST/HST you pay on business purchases. Without registration, you pay GST/HST on your expenses but can't recover it. The CRA's ITC eligibility page spells out which expenses qualify.
Example: You spend $20,000/year on business expenses (software subscriptions, equipment, professional services). At 5% GST, that's $1,000 in tax you're paying. If you're registered, you claim that $1,000 back. If you're not registered, it's just a cost.
Professional Credibility
Many B2B clients expect to see GST/HST on invoices. Not having a GST number can signal that your business is very small or informal. For corporate clients, the GST you charge is just an ITC they claim back, so it costs them nothing.
No Disadvantage with Business Clients
When you sell to other registered businesses, the GST/HST you charge is neutral for them. They claim it back as an ITC. Your price doesn't effectively change.
When Voluntary Registration Doesn't Make Sense
| Situation | Why Registration May Not Help |
|---|---|
| All clients are consumers (not businesses) | GST makes your price 5-15% higher, and they can't claim ITCs |
| Very low business expenses | Minimal ITCs to recover |
| Exempt supplies only | No GST/HST applies regardless |
| You want to minimize admin | Registration means quarterly or annual filing |
If you're a tutor charging individual students, or a massage therapist billing patients directly, the added tax on your invoices is a real cost increase for your clients.
GST vs HST vs PST: Quick Reference
The rate you charge depends on where your customer is located (for services) or where the goods are delivered:
| Province | Tax Type | Rate |
|---|---|---|
| Alberta | GST only | 5% |
| British Columbia | GST + PST | 5% + 7% |
| Manitoba | GST + PST | 5% + 7% |
| Ontario | HST | 13% |
| Quebec | GST + QST | 5% + 9.975% |
| Saskatchewan | GST + PST | 5% + 6% |
| New Brunswick | HST | 15% |
| Nova Scotia | HST | 14% |
| Newfoundland & Labrador | HST | 15% |
| PEI | HST | 15% |
Note: PST is a separate provincial tax and requires separate registration in each province. GST/HST is federal (administered by CRA).
How to Register
Registration is straightforward:
- Go to CRA's Business Registration Online portal.
- If you already have a Business Number (BN), add a RT (GST/HST) program account.
- If you don't have a BN, the system will create one for you.
- Choose your reporting period: annual (most small businesses), quarterly, or monthly.
- Choose your filing method: regular or Quick Method (simplified calculation for eligible businesses).
Registration can be effective on the date you choose, including a past date if you want to retroactively claim ITCs (up to certain limits).
Filing and Remitting
Once registered, your obligations are:
- Collect GST/HST on your taxable sales.
- Track ITCs on your business purchases.
- File a GST/HST return (Form GST34) by the deadline for your reporting period.
- Remit the net tax (GST collected minus ITCs claimed). If your ITCs exceed your collections, CRA sends you a refund.
| Reporting Period | Filing Deadline |
|---|---|
| Annual (most small businesses) | 3 months after fiscal year-end |
| Quarterly | 1 month after each quarter |
| Monthly | 1 month after each month |
The Quick Method
The Quick Method simplifies GST/HST calculation for eligible small businesses (under $400,000 in annual taxable supplies). Instead of tracking ITCs on every purchase, you remit a flat percentage of your revenue.
For service businesses in most provinces, the Quick Method rate is approximately 3.6% of revenue (including GST). This is less than the 5% GST you collect, so you keep the difference. For many service-based corporations, the Quick Method saves money.
How ledg Helps
ledg automatically separates GST/HST from your transaction amounts, tracks your ITCs, and gives you a clear picture of what you owe (or what CRA owes you) at any point during the reporting period. No more spreadsheet gymnastics at filing time.
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