Everything you need to know about registering for GST and HST in Canada — threshold, provincial rates, registration steps, and CRA filing obligations.
Last updated: June 2026
You must register for GST/HST if your total worldwide revenues from taxable supplies exceed CA$30,000 in a single calendar quarter, or in four consecutive calendar quarters (roughly 12 months). Once you exceed this threshold in a single quarter, you must register within 29 days of the end of that quarter — not 29 days from when you exceeded it.
The CA$30,000 threshold is low compared to many other countries. A freelancer earning CA$2,500 per month will hit it in the first year. If you are a new business and you expect to exceed CA$30,000 in your first year, register proactively rather than scrambling partway through the year.
Who is always exempt: If you are a "small supplier" — meaning your total taxable revenues in the last four consecutive quarters are CA$30,000 or less — you are not required to register. Certain supplies are always exempt regardless of revenue, including residential rent, most health and dental services, child care, and most educational services.
You can register voluntarily even below the CA$30,000 threshold. This is worth considering if you buy significant inputs with GST/HST (you can claim it back as an input tax credit) or if your customers are mostly GST/HST-registered businesses who will want to reclaim the tax.
GST vs HST — what's the difference? The federal Goods and Services Tax (GST) is 5% across all of Canada. Some provinces have merged their provincial sales tax with the federal GST into a single Harmonised Sales Tax (HST). If you sell to customers in an HST province, you collect the combined rate. Quebec has its own QST system administered separately.
| Province / Territory | Tax type | Combined rate |
|---|---|---|
| Ontario | HST | 13% |
| Nova Scotia | HST | 15% |
| New Brunswick | HST | 15% |
| Newfoundland & Labrador | HST | 15% |
| Prince Edward Island | HST | 15% |
| British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, territories | GST only (+ separate PST/QST) | 5% |
Go to canada.ca and register through the CRA's My Business Account portal. You'll need a CRA business number (BN) — if you don't have one, it will be created during registration.
Quarterly is the default for businesses with revenues between CA$30,000 and CA$6 million. You can also file annually (if under CA$1.5 million) or monthly (if over CA$6 million, monthly is mandatory). Most small businesses should start quarterly.
The CRA will issue your 9-digit Business Number with a RT0001 suffix for your GST/HST account (e.g. 123456789 RT0001). This must appear on all your invoices and receipts. You can start collecting GST/HST immediately — you don't need to wait for a physical letter.
Charge the applicable rate based on where your customer is located (the "place of supply" rules). A customer in Ontario pays 13% HST; a customer in Alberta pays 5% GST. Most accounting software handles this automatically if you set the customer province correctly.
Filing returns: Quarterly GST/HST returns are due one month after each quarter ends. Annual returns are due three months after your fiscal year end. You report the total GST/HST collected (your "net tax" output), subtract the input tax credits (ITCs) you claim on business purchases, and remit the difference to the CRA.
Input tax credits (ITCs): Once registered, you can claim back GST/HST paid on business expenses — rent, equipment, supplies, professional services. This is one of the main benefits of registering voluntarily below the threshold. Keep all receipts; ITCs require supporting documentation.
Late registration penalties: If you fail to register on time, the CRA can assess GST/HST for the entire period you should have been registered. You will owe tax you never collected from customers, plus interest. Penalties can reach 6% of the amount that should have been remitted.
No. The threshold is based on taxable supplies only. Exempt supplies (residential rent, most health services, child care) do not count toward the CA$30,000. Zero-rated supplies (exports, basic groceries) do count, because they are technically taxable at 0%.
The threshold applies per legal entity, but the CRA has rules to prevent artificial splitting. If two businesses are closely related or controlled by the same person, the CRA may aggregate revenues. Consult a tax advisor if you operate multiple ventures.
Generally no. Most services and goods exported outside Canada are zero-rated (0% GST/HST). However, if a service is "consumed in Canada" — for example, a consultant physically working in Canada for a US client — it may still be taxable. Digital services follow the place-of-supply rules based on the customer's location.
The Quick Method is a simplified option for small businesses (annual revenues under CA$400,000). Instead of calculating actual ITCs, you remit a fixed percentage of your gross revenues (including GST/HST charged). This is simpler but may cost more if you have significant input expenses. You elect into it by filing a form with the CRA.
If you exceed CA$30,000 in a single quarter, you must register within 29 days of the end of that quarter. If you exceed it over four consecutive quarters, you must register within 29 days of exceeding the threshold. Start tracking carefully once you're approaching CA$25,000 in a quarter.
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