How to Register for GST/HST in Canada

Running a small business means you could easily miss the $30,000 GST/HST registration point and end up with fines, interest, and messy invoice fixes. Imagine finding out months later that you should’ve been charging tax all along or charging it without a proper account, and now you have to make costly corrections.

This guide shows you exactly when you lose “small-supplier” status, how to register online with the CRA, and where to find official resources at every step. Follow these clear, step-by-step instructions and practical tips to keep your books clean, avoid penalties, and turn compliance into a competitive edge.

Navigating Canada’s $30,000 Small-Supplier Rule

Who Qualifies as a Small Supplier

If total worldwide taxable supplies (including associated businesses) are $30,000 or less over the previous four consecutive calendar quarters, you’re a “small supplier” and not required to register for GST/HST.

Losing Small-Supplier Status

1. Single-Quarter Rule: Exceed $30,000 in any three months ⇒ you lose small-supplier status on the date of that sale and must register within 29 days
2. Four-Quarter Test: Even if no single quarter breaches $30K, surpassing $30K cumulatively over any four consecutive quarters ⇒ status ends at quarter’s end, and you have until the first day of the next month to register

By monitoring your quarterly revenue and using tools like HSTCalculator.onl, you can track the $30,000 threshold, predict your registration date, and avoid costly penalties, interest charges, and late-filing fees.

Which Sales Are Attracting GST/HST: Taxable, Zero-Rated, or Exempt?

Before registering, sort your products and services into three CRA categories:

• Taxable Supplies
  These are your everyday goods and services—you must charge GST/HST, collect it, and remit the tax to the CRA.
  
• Zero-Rated Supplies (0%)
  Examples include basic groceries or certain medical devices. You don’t charge GST/HST at checkout, but you can still claim Input Tax Credits (ITCs) for the tax you paid on business expenses.
  
• Exempt Supplies
  Think childcare fees or music lessons. You don’t collect GST/HST and cannot claim ITCs.
  

Pro Tip: If all you sell are exempt supplies, you’re not eligible to register for GST/HST.

Understanding these categories is key to accurate GST/HST registration, compliance, and maximizing your ITCs.

Related:

• What Is a Harmonized Sales Tax (HST) Number?
• GST vs. HST: Which Sales Tax Applies to Your Business?

Special-Case Thresholds

• Charities & Public Institutions: Must watch parallel tests: $250,000 gross revenue or $50,000 taxable supplies
• Taxi & Ride-Share Drivers: Must register from the first dollar of sales, regardless of threshold
• Selected Financial Institutions: Follow GST/HST Notice 265 reporting rules—see CRA guidance before registering

When (and Why) to Register Voluntarily

Even if under $30K, voluntary registration can:

• Unlock ITCs on start-up expenses
• Smooth the transition if you foresee rapid growth
• Establish proper bookkeeping from day one

Your effective date is the day you request your account (or up to 30 days prior)

Simple Steps to Register for GST/HST

Follow these quick steps to register for your GST/HST account, start charging the right tax rates, and stay fully compliant.

• Register up to 30 days before or within 29 days after your sales exceed $30,000 (or by the first of the next month if over four quarters).
• Use the CRA’s Business Registration Online site and your SIN (even SINs starting with 9 now supported) to get your Business Number and GST/HST account instantly.
• Display your BN and the applicable tax rate on every invoice you issue.

• Apply the correct rate based on your place of supply:

• 5% (GST) in AB, BC, MB, QC, SK, and territories
• 13% (HST) in ON
• 14% (HST) in NS (after April 1, 2025)
• 15% (HST) in NB, NL, PE, and NS (until March 31, 2025)

• Choose a filing frequency—monthly, quarterly, or annually—based on your sales volume.

Leveraging the Quick Method Credit

• If you file monthly or quarterly, the 1% credit applies to your first two reporting periods each fiscal year until you hit $30K or year-end
• If you file annually, apply the 1% credit to the first $30,000 of your eligible supplies.

How to Avoid GST/HST Penalties

Pitfall	Prevention Tip
Missed Registration	Set calendar reminders for threshold monitoring and 29-day registration deadline.
Incorrect Rate Charged	Always confirm via CRA’s
Late Filing	Align your reporting frequency with your cash flow; file early to avoid CRA interest charges.
Poor Record-Keeping	Retain invoices, sales logs, and receipts for six years—critical for supporting ITC claims during audit.
Rounding Errors	Use HSTCalculator.onl’s net ⇄ gross toggle and proper rounding rules to eliminate discrepancies.

Final Note:

Registering for GST/HST at the right time and charging the correct rate is crucial for avoiding fines and maximizing your input tax credits. By mastering the $30,000 small-supplier rule and using intuitive tools like HSTCalculator.onl, you’ll transform compliance from a liability into a strategic advantage.

Frequently Asked Questions