Last updated: October 16, 2026. Rules and rates checked against Canada Revenue Agency (CRA) pages on that date.
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Key takeaways
– You’re a small supplier and don’t have to register if your worldwide taxable revenue is $30,000 or less in a single calendar quarter and over the last four consecutive calendar quarters.
– If you go over $30,000 in one quarter, you must charge GST/HST on the sale that pushed you over and register within 29 days.
– If you go over $30,000 across four quarters (but not in any one quarter), you stay a small supplier until the end of the following month. You then start charging on your next sale.
– 2026 rates: 5% GST in AB, BC, MB, QC, SK and the territories. HST is 13% in ON, 14% in NS (since April 1, 2025), and 15% in NB, NL and PE.
– Registering voluntarily before you hit the threshold lets you claim input tax credits, but it adds paperwork.
Who this guide is for
This guide is for sole proprietors in Canada outside the special industries: designers, developers, writers, consultants, tutors, photographers and side-hustlers. Some businesses must register from their first dollar of revenue, whatever their sales. CRA lists taxi and commercial ride-sharing drivers among them, along with a few other categories (CRA: When to register). If that’s you, the $30,000 rule doesn’t apply.
The small supplier rule, in plain language
CRA’s definition (RC4022):
You’re a small supplier if your revenue (along with that of associated persons) from worldwide taxable supplies was $30,000 or less in a single calendar quarter and over the last four consecutive calendar quarters.
What that means in practice:
- Revenue means gross sales, before expenses. If you invoiced $32,000 and spent $10,000, your revenue for this test is $32,000.
- “Worldwide” means all your clients count, including clients outside Canada. Many services you export are “zero-rated” (taxed at 0%), but zero-rated sales still count toward the $30,000 (CRA, GST/HST memorandum 8.5).
- Exempt supplies don’t count. These are supplies such as certain financial services. Some health and education services are also exempt.
- Calendar quarters are Jan–Mar, Apr–Jun, Jul–Sep and Oct–Dec.
- This is a rolling test, not a yearly one. You always look back at the last four quarters, not at January to December.
- If you run more than one business, add them together. The threshold applies to all your businesses combined, plus any associated persons.
The two ways to cross the threshold
| What happens | When you stop being a small supplier | When to start charging | Registration deadline |
|---|---|---|---|
| You go over $30,000 in one calendar quarter | Right away | On the sale that put you over | Within 29 days of that sale |
| You go over $30,000 across four quarters, but not in any one quarter | At the end of the month after the quarter you went over in | On your first sale after that | Within 29 days of that sale |
Source: CRA: When to register for and start charging the GST/HST
Example A: a big contract in one quarter
Maya, a Toronto UX designer, has billed $18,000 so far between July and September. On August 20 she invoices $15,000, which brings her to $33,000 in a single quarter.
- That August 20 invoice must include 13% HST.
- Her effective date of registration is August 20.
- She has 29 days to register.
Example B: slow and steady
Dev, a Calgary copywriter, bills about $8,000 every quarter. After four quarters he has $32,000, and he went over the threshold in the quarter ending March 31.
- He stays a small supplier through the end of April.
- He must charge 5% GST starting with his first invoice after that.
- He must register within 29 days of that invoice.
2026 GST/HST rates by province
The rate you charge depends on where the supply is made under the place-of-supply rules, which is often the client’s province. It is not necessarily the province where you live.
| Province/territory | GST/HST rate |
|---|---|
| Alberta, BC, Manitoba, Quebec, Saskatchewan, NWT, Nunavut, Yukon | 5% GST |
| Ontario | 13% HST |
| Nova Scotia | 14% HST (cut from 15% on April 1, 2025) |
| New Brunswick, Newfoundland and Labrador, PEI | 15% HST |
Source: CRA GST/HST calculator and rates. BC, Manitoba, Saskatchewan and Quebec also have provincial sales taxes, which are separate and have their own registration rules. Quebec’s QST is administered by Revenu Québec.
Should you register voluntarily?
You can register before you reach $30,000. Your effective date is usually the day you ask, or up to 30 days before that. If you register voluntarily, you may have to stay registered for at least one year before you can cancel (CRA: Register for a GST/HST account).
Pros
- You can claim input tax credits (ITCs), which means getting back the GST/HST you pay on business costs like laptops, software and coworking space.
- Business clients that are registered usually claim back the GST/HST you charge them, so it doesn’t cost them anything.
- Some corporate clients expect suppliers to have a GST/HST number.
- You won’t be caught off guard when a big contract pushes you over the threshold.
Cons
- You have to file GST/HST returns.
- If your clients are consumers who can’t claim ITCs, your prices effectively go up by 5–15%.
- You need to keep records and set money aside. GST/HST you collect isn’t your income.
Rule of thumb: If most of your clients are businesses and you expect to grow past $30,000, registering early often makes sense. If you sell mostly to consumers and stay well under the threshold, staying a small supplier usually keeps things simpler.
How to register
You can register online through CRA’s Business Registration Online, by phone, or by mail. You’ll get a nine-digit business number and a GST/HST program account ending in “RT0001” (CRA). Have your SIN, your business details, and your expected revenue ready.
After you register: what changes
- Charge GST/HST on your invoices and show your registration number.
- Set the tax money aside. Many freelancers use a separate savings account for this.
- Track your ITCs. Keep receipts for business purchases.
- File on time. CRA gives you a reporting period, which for many small businesses is annual. Check your own assigned period in My Business Account.
- Consider the Quick Method. Eligible small businesses can remit a flat percentage of their tax-included sales instead of tracking each ITC. CRA’s Quick Method guide (RC4058) lists the eligibility rules, including a revenue limit, and the remittance rate for each province. Look up your rate there, because it varies by province and by type of business.
Common mistakes
- Counting by calendar year instead of rolling quarters.
- Leaving out foreign clients. Revenue from them counts toward the threshold even when it’s zero-rated.
- Not charging GST/HST on the invoice that put you over. If you miss it, you may have to pay that tax yourself.
- Using your home province’s rate for every client. Place-of-supply rules decide the rate.
- Spending the HST you collected. It belongs to CRA.
FAQ
Is the $30,000 threshold yearly?
No. It’s tested over any four consecutive calendar quarters, and also within a single quarter.
Do I charge GST/HST to clients outside Canada?
Many services supplied to non-residents are zero-rated, but not all. Check CRA’s guidance on exports of services for your specific situation.
What if I already went over and didn’t register?
Register as soon as possible. If you should have been registered more than 30 days earlier, CRA has a separate process for backdating a registration (CRA). Consider speaking with an accountant.
Do platform sales (Etsy, Fiverr, Upwork) count?
Yes. Revenue from taxable supplies counts no matter where you sell. Platform-specific rules can affect who charges the tax, so check the platform’s tax pages and CRA’s guidance on digital economy rules.
Is Quebec different?
GST is 5% across Canada, but Quebec’s QST (9.975%) is administered by Revenu Québec under its own rules.
Disclaimer
This article is general information, not tax, legal or financial advice. GST/HST rules depend on what you sell, who you sell to and where. Confirm your situation with CRA or a qualified accountant.
Sources
- CRA, When to register for and start charging the GST/HST: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/when-register-charge.html
- CRA, RC4022 General Information for GST/HST Registrants: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4022/general-information-gst-hst-registrants.html
- CRA, GST/HST Memorandum 2.2, Small suppliers: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/2-2/small-suppliers.html
- CRA, GST/HST Memorandum 8.5, Becoming and ceasing to be a registrant: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/8-5/becoming-and-ceasing-to-be-a-registrant.html
- CRA, Register for a GST/HST account: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-account/register-account.html
- CRA, GST/HST calculator (and rates): https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate/calculator.html
- CRA, RC4058 Quick Method of Accounting for GST/HST: https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4058/quick-method-accounting-gst-hst.html