Just started earning business or self-employment income and not sure if you need to charge tax? The magic number is $30,000 but the timing rules around it trip a lot of people up. Here’s exactly when you must register for GST/HST in Canada in 2026, and when you might want to register early.
You must register for GST/HST once you’re no longer a “small supplier” that is, once your taxable revenue exceeds $30,000 over any four consecutive calendar quarters (or in a single quarter). Below $30,000 you can stay unregistered and skip charging tax, but you also can’t claim input tax credits. Many small businesses register voluntarily before $30,000 to recover the GST/HST they pay on expenses. Once registered, you charge tax, file returns, and remit.
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Do You Need to Register for GST/HST? (Quick Answer)
If your business’s worldwide taxable sales are $30,000 or less over the last four quarters, you’re a small supplier and generally don’t have to register or charge GST/HST. Cross $30,000 and registration becomes mandatory. Some businesses (like taxi/ride-share drivers) must register regardless of revenue.
The $30,000 Small Supplier Threshold Explained
The $30,000 figure is measured on taxable revenue (before expenses) across your business, including associated businesses. It’s a rolling test over four consecutive calendar quarters not a calendar-year reset. Exempt supplies (like most health, financial, and certain residential rent) don’t count toward it. Zero-rated supplies (taxed at 0%, like basic groceries and exports) do count as taxable revenue even though the rate is 0%.
When Registration Becomes Mandatory (Timing Rules)
The timing is where people slip up. Two triggers:
| Trigger | What happens |
| You exceed $30,000 in a single calendar quarter | You stop being a small supplier immediately; you must register and charge GST/HST on the sale that put you over |
| You exceed $30,000 over four consecutive quarters (but not in one) | You have a one-month grace: small-supplier status ends the month after, and you must register by then |
So track your rolling four-quarter total. Once you’re over, register promptly charging tax late (but still owing it) is a costly mistake.
Should You Register Voluntarily? (ITC Benefits)
Even under $30,000, voluntary registration can pay off because it lets you claim Input Tax Credits (ITCs) recovering the GST/HST you pay on business purchases (equipment, supplies, software, professional fees).
Register early if:
- You have significant startup or equipment costs with GST/HST to recover.
- Your customers are mostly other businesses (they claim the tax back, so charging it doesn’t deter them).
- You expect to cross $30,000 soon
Maybe wait if:
- You sell mostly to individual consumers (adding tax makes you pricier).
- You have few expenses with recoverable tax.
How to Register (Steps + Effective Date)
Registering is straightforward:
- Have your Business Number (BN) (or get one).
- Register online (CRA My Business Account / Business Registration Online), by phone, or by mail.
- Choose your effective date it can’t be earlier than 30 days before you apply in most cases, and matters for when you start charging and claiming.
- Pick your reporting period (annual, quarterly, or monthly often based on revenue).
You’ll get a GST/HST account (RT) under your Business Number.
What Happens After You Register (Charging & Filing)
Once registered, you must:
- Charge GST/HST at the rate for your customer’s province (e.g., 5% GST in BC/AB, 13% HST in Ontario).
- Put your GST/HST number on invoices.
- Track ITCs on your business expenses.
- File returns (annually, quarterly, or monthly) and remit the net tax (tax collected minus ITCs) by the deadline.
Keep clean records GST/HST filing errors and late remittances draw interest and penalties.
FAQ
When do I have to register for GST/HST?
Once your taxable revenue exceeds $30,000 over four consecutive calendar quarters (or in a single quarter). Below that you’re a small supplier and don’t have to.
Is the $30,000 based on profit or revenue?
Revenue (taxable sales before expenses), across your business and associated businesses not net profit.
Can I register before I hit $30,000?
Yes, voluntary registration lets you claim input tax credits on your business expenses, which is often worth it for startups with big costs or business customers.
What GST/HST rate do I charge?
It depends on the customer’s province for example, 5% GST in BC and Alberta, 13% HST in Ontario. You charge based on where the supply is made.
What are input tax credits?
ITCs let registered businesses recover the GST/HST paid on business purchases, so you remit only the net (tax collected minus ITCs).
What if I don’t register when I should?
You still owe the GST/HST you should have collected, plus possible interest and penalties so register promptly once you cross the threshold.
How often do I file GST/HST returns?
Annually, quarterly, or monthly, generally based on your revenue. You can sometimes choose a more frequent period.
Do all businesses have to register eventually?
Only if they exceed $30,000 in taxable supplies (some, like ride-share drivers, must register regardless). Purely exempt-supply businesses may not register at all.