GST/HST Registration Self-Employed Canada 2025

Complete guide to GST/HST for self-employed Canadians — when to register, how to file, and how to use Input Tax Credits to your advantage.

The $30,000 Small Supplier Threshold

Most self-employed Canadians must register for GST/HST once their taxable supplies (essentially, total self-employment revenue from taxable services and products) exceed $30,000 in any single calendar quarter, OR in any four consecutive calendar quarters. The moment you cross this threshold, you have 29 days to register. Failure to register on time means the CRA can assess the GST/HST you should have collected retroactively — plus penalties.

Important exception: certain businesses must register from the first dollar of income, regardless of the $30,000 threshold. These include: taxi and rideshare drivers (Uber, Lyft), non-resident digital service providers, and some other specific categories. If you drive for a rideshare platform in Canada, register for GST/HST before your first trip.

GST/HST Rates by Province (2025)

Province/Territory	GST/HST Rate	Type
Alberta, BC, Manitoba, Saskatchewan, Quebec*	5%	GST only
Ontario	13%	HST
New Brunswick, Newfoundland, Nova Scotia, PEI	15%	HST
Yukon, NWT, Nunavut	5%	GST only

*Quebec has its own QST (Quebec Sales Tax) of 9.975% administered separately by Revenu Québec. If you are registered for GST in Quebec, you must also register for QST.

How to Register for GST/HST

Register online through the CRA's My Business Account portal, by phone at 1-800-959-5525, or through a paper form (RC1). The registration is free and typically processed within a few days online. You will receive a 9-digit Business Number (BN) followed by "RT0001" for your GST/HST account. Include this number on all invoices to Canadian clients once registered.

Filing GST/HST Returns

The CRA assigns a filing frequency when you register: annual (under $1.5M in taxable supplies), quarterly ($1.5M–$6M), or monthly (over $6M). Most new self-employed Canadians file annually. Annual filers submit their GST/HST return by June 15 (if self-employed) but must remit any net tax owing by April 30. File using My Business Account online — it is the fastest method and allows instant confirmation.

Your return calculation: GST/HST collected (on Canadian sales) minus Input Tax Credits (ITCs on business purchases) = net tax owing or refund. If your ITC claims exceed collected GST/HST in a period, you receive a refund — this is common for businesses with significant startup expenses or those primarily serving foreign clients (zero-rated exports).

Input Tax Credits: Recovering GST/HST Paid on Expenses

One of the key benefits of GST/HST registration is the ability to claim ITCs — recovering the GST/HST you paid on eligible business purchases. If you buy a $1,000 laptop for your business in Ontario, you paid $130 in HST. As a registered business, you claim that $130 as an ITC, effectively getting it back. Keep all receipts showing the supplier's GST/HST number, the amount paid, and the date — these are required to support ITC claims.

The Quick Method: Simplified GST/HST for Small Businesses

Self-employed Canadians with taxable revenues under $400,000 can elect to use the Quick Method of accounting for GST/HST. Instead of tracking ITCs on every expense, you remit a flat percentage of your gross taxable revenues (including GST/HST collected). The rate varies by province and business type: service businesses in HST provinces remit approximately 8.8% of gross HST-inclusive revenue (keeping the rest). For many service-based freelancers, the Quick Method results in paying less GST/HST than the regular method — consult an accountant to confirm which is more advantageous for your situation.