Small Supplier $30K Threshold

Definition

A small supplier is defined in ETA s.148 as a person whose total worldwide taxable supplies (including those of associates) do not exceed $30,000 in any single calendar quarter and do not exceed $30,000 over the immediately preceding four consecutive calendar quarters. A small supplier is not required to register, collect, or remit GST/HST, but also cannot claim Input Tax Credits on purchases. The moment both tests are crossed, small-supplier status is lost and mandatory registration is triggered.

Key rules

• Two independent tests under ETA s.148(1):
  • Single-quarter test: taxable revenues exceed $30,000 in one calendar quarter.
  • Running four-quarter test: taxable revenues exceed $30,000 over the last four consecutive calendar quarters.
• The measure is gross taxable revenue worldwide, excluding zero-rated sales of financial services and goodwill, GST/HST itself, PST/QST, and taxable sales of capital property.
• Revenue of associated persons (ETA s.127) is added together. A shareholder operating two corporations at $20,000 each has a combined $40,000 and is not a small supplier.
• When the single-quarter test is failed, the person ceases to be a small supplier immediately on the supply that pushed revenues past $30,000. Tax must be charged on that supply and every one after.
• When only the four-quarter test is failed, the person remains a small supplier for one additional month as a transition period, then loses the status from the first day of the following month.
• Public service bodies (charities, non-profits) have a separate higher threshold of $50,000.

Example

A BC corporation tracks rolling taxable revenue each quarter of 2026:

Q1 2026 (Jan-Mar):  $8,000    Rolling 4-qtr total:  $8,000   Status: small supplier
Q2 2026 (Apr-Jun):  $9,000    Rolling 4-qtr total: $17,000   Status: small supplier
Q3 2026 (Jul-Sep): $14,000    Rolling 4-qtr total: $31,000   Status: threshold crossed
Q4 2026 (Oct-Dec): $12,000    (registration already required)

Four-quarter test failed in Q3.
Cease to be small supplier: November 1, 2026 (first day of second month after
  the quarter in which the threshold was crossed).
Registration effective date: November 1, 2026.
All taxable supplies from Nov 1, 2026 must include GST/HST.

If instead a single $40,000 invoice had been issued on August 20, the single-quarter test would have failed immediately. GST/HST must be charged on that August 20 invoice itself.

Common mistakes

• Counting net revenue (after expenses) instead of gross taxable supplies.
• Excluding out-of-country sales. Zero-rated exports still count toward the threshold.
• Forgetting associated corporations. Two $20,000 businesses under common control are a single $40,000 registrant.
• Applying a calendar-year view ($30,000 per fiscal year) instead of the rolling four-quarter view.
• Missing the single-quarter trap. A one-off large project in a single quarter triggers immediate registration even if annual revenue is modest.

Related concepts

Losing small-supplier status triggers mandatory registration. A business under the threshold can still elect voluntary registration to recover ITCs. Review the overview for the broader framework.