Do You Need to Register for GST/HST? The $30,000 Rule Explained

Freelancers, consultants, online sellers and side businesses all face the same question once sales start to grow: when do I have to charge GST/HST?

The small supplier test

You are a small supplier — and don’t have to register — if your taxable sales are $30,000 or less over the last four consecutive calendar quarters. Calendar quarters run January–March, April–June, July–September and October–December.

You stop being a small supplier in one of two ways:

1. Over $30,000 in a single quarter. You stop immediately, on the sale that takes you over. You must charge GST/HST on that sale.
2. Over $30,000 across four quarters (but not in any single one). You stay a small supplier until the end of the month after that quarter, then must start charging tax.

Either way, you have 29 days to register after your registration takes effect.

Example: your sales were $7,000, $8,000, $9,000 and $7,000 in the four quarters ending September 30 — $31,000 in total. You remain a small supplier until October 31, must charge GST/HST from November 1, and must register by November 30.

What counts toward the $30,000

• Taxable sales worldwide, before GST/HST
• Zero-rated sales (exports, basic groceries and similar)
• Sales of businesses associated with yours

Leave out exempt sales, financial services, sales of capital property and goodwill.

Other thresholds

Who	Threshold
Most businesses	$30,000 taxable sales
Public service bodies (non-profits, municipalities)	$50,000 taxable sales
Charities and public institutions	$250,000 gross revenue, or $50,000 taxable sales

Who must register no matter what

• Taxi and commercial ride-sharing drivers (Uber, Lyft and similar) — from the first fare
• Non-residents who sell admissions to events or seminars in Canada
• Non-residents hosting a convention where over 25% of attendees are Canadian residents

Should you register voluntarily?

Registering early lets you claim input tax credits on business purchases — equipment, software, supplies — and can make you look more established to business clients, who can claim back the GST/HST you charge. The trade-off is charging tax to consumers and filing returns.

Use the GST/HST registration checker to run the test on your own numbers.