HST/GST for Self-Employed Canadians: When + How to Register 2025

Updated March 2025 · 13 min read

For many self-employed Canadians, the Goods and Services Tax / Harmonized Sales Tax system is confusing and intimidating. This guide demystifies HST/GST: who needs to register, when registration is required, how rates differ by province, how to file returns, and how to claim Input Tax Credits to get back the tax you paid on your own business purchases.

GST vs. HST: What's the Difference?

GST (Goods and Services Tax) is the federal tax charged at 5%. Several provinces have harmonized their provincial sales tax with the GST to create a single Harmonized Sales Tax (HST). Understanding which applies in your province is essential:

• Ontario: HST at 13% (5% federal + 8% provincial)
• Nova Scotia: HST at 15% (5% federal + 10% provincial)
• New Brunswick: HST at 15% (5% federal + 10% provincial)
• PEI: HST at 15% (5% federal + 10% provincial)
• Newfoundland & Labrador: HST at 15% (5% federal + 10% provincial)
• British Columbia: GST at 5% only (BC has separate 7% PST that self-employed individuals generally do not collect)
• Alberta: GST at 5% only (no provincial sales tax)
• Saskatchewan: GST at 5% only (separate 6% PST)
• Manitoba: GST at 5% only (separate 7% RST)
• Quebec: GST at 5% + separate QST at 9.975% (administered separately by Revenu Québec)

The $30,000 Small Supplier Threshold

You are a "small supplier" exempt from mandatory GST/HST registration if your total taxable revenue (from all commercial activities) does not exceed $30,000 in any single calendar quarter or in four consecutive calendar quarters. The moment you exceed this threshold, you must register within 30 days.

The $30,000 threshold counts:

• Revenue from all your business activities combined
• Revenue from all associated businesses (spouse's business if associated)
• GST/HST-taxable supplies only (most business services qualify)

It does not count:

• Personal use items sold occasionally
• Exempt supplies (long-term residential rent, some healthcare)
• Revenue before you started your business

Exceptions: Who Must Register Immediately

Certain businesses must register from day one, regardless of revenue:

• Taxi and ride-sharing operators (Uber, Lyft drivers) — register before your first ride
• Non-residents providing certain digital services to Canadians

Voluntary Early Registration

You can register for GST/HST before you reach $30,000. This makes sense if:

• Your clients are businesses that can claim ITCs — they don't care about HST
• You have significant startup expenses with HST that you want to recover through ITCs
• You want to appear more established to business clients

Downside of voluntary registration: you're now required to collect and remit HST, adding administrative burden. For freelancers with individual consumers as clients (not businesses), charging HST can slightly reduce your competitive pricing.

How to Register for GST/HST

Registration is free and can be done through:

• CRA My Business Account — online, fastest option
• CRA Business Registration Online (BRO) — separate online portal
• By phone: 1-800-959-5525
• In person: CRA tax services office

You'll need your SIN, personal information, and business details. Once registered, you receive a GST/HST account number (your 9-digit BN followed by RT0001). Keep this number — you'll need to include it on invoices.

Collecting HST on Invoices

Once registered, add GST/HST to all taxable invoices. Your invoice should show:

• Your GST/HST registration number
• The amount of GST/HST charged separately
• The rate applied

Example invoice line items for an Ontario consultant:
Services rendered: $2,000.00
HST (13%): $260.00
Total: $2,260.00
GST/HST # 123456789 RT0001

Input Tax Credits: Getting Back What You Paid

As a registered GST/HST business, you can claim Input Tax Credits (ITCs) for the GST/HST you paid on eligible business purchases. This is how the system avoids double-taxation through the supply chain.

Common business expenses where you can claim ITCs:

• Computer and technology purchases
• Software subscriptions (with HST)
• Gas for business vehicle use
• Office supplies and furniture
• Marketing and advertising services
• Accountant and legal fees
• Training courses (with HST)

ITCs cannot be claimed on personal-use portion of expenses, or on expenses that are exempt from GST/HST (like basic grocery food).

Filing Your HST Returns

After registering, you'll choose a filing frequency:

• Annual: File once a year; simplest option for most small businesses. Due 3 months after fiscal year end.
• Quarterly: File 4x per year; useful if you have large ITC claims you want reimbursed faster
• Monthly: For larger businesses with significant HST flows

Your HST return calculates: HST collected on sales MINUS ITCs on purchases = Net tax payable (or refund if ITCs exceed HST collected).

The Quick Method of Accounting

The CRA offers a simplified option called the Quick Method for businesses with annual taxable supplies under $400,000. Instead of tracking every ITC, you remit a fixed percentage of your gross HST-included revenue. This reduces paperwork and often results in a lower net remittance.

Quick Method remittance rates (approximate, 2025):

• Service businesses in Ontario: ~8.8% of HST-included sales
• Service businesses in BC/Alberta: ~3.6% of GST-included sales

Under the Quick Method, you still charge clients the full HST rate (13% in Ontario) but only remit a lower percentage. The difference is your net benefit — essentially a built-in government subsidy for small service businesses. Elect the Quick Method by submitting Form GST74 to the CRA.

Common HST Mistakes to Avoid

• Not tracking the $30,000 threshold carefully and registering late
• Spending HST collected — treat collected HST as never yours; keep it in a separate account
• Missing ITC claims by not keeping receipts
• Charging HST to US/international clients when you shouldn't (exports of services are typically zero-rated)
• Forgetting to file HST returns on time (late filing penalties apply)