When you must register for GST/HST, how to register with CRA, rates by province, input tax credits, and filing requirements. Everything Canadian freelancers and small business owners need to know.
Key points about the $30,000 threshold:
| Province/Territory | Tax Type | GST | Provincial | Total Rate |
|---|---|---|---|---|
| Ontario | HST | 5% | 8% | 13% |
| New Brunswick | HST | 5% | 10% | 15% |
| Nova Scotia | HST | 5% | 10% | 15% |
| Newfoundland & Labrador | HST | 5% | 10% | 15% |
| Prince Edward Island | HST | 5% | 10% | 15% |
| Alberta | GST only | 5% | 0% | 5% |
| Northwest Territories | GST only | 5% | 0% | 5% |
| Nunavut | GST only | 5% | 0% | 5% |
| Yukon | GST only | 5% | 0% | 5% |
| British Columbia | GST + PST | 5% | 7% PST | 5% + 7% (separate) |
| Manitoba | GST + PST (RST) | 5% | 7% RST | 5% + 7% (separate) |
| Saskatchewan | GST + PST | 5% | 6% PST | 5% + 6% (separate) |
| Quebec | GST + QST | 5% | 9.975% QST | 14.975% effective |
Go to canada.ca and access My Business Account. If you don't have one, register using your Social Insurance Number or your existing CRA My Account credentials. Select "Register for business number and program accounts."
CRA issues a 9-digit Business Number when you register. Your GST/HST account is denoted RT0001 appended to your BN. You'll need this number for all GST/HST filings and correspondence.
Annual filing (under $1.5M revenue), quarterly (under $6M), or monthly (over $6M or optional). Annual filers still make quarterly instalment payments. Most small businesses choose annual filing to minimize paperwork.
From the effective date of registration, add GST/HST to all taxable invoices. Keep all records of collected GST/HST (ITRs) and amounts paid (ITCs) separately — you'll report both on each return.
Report collected GST/HST minus Input Tax Credits (ITCs) on each return. If you collected more than you paid in business expenses, remit the difference. If you paid more than you collected (e.g., large equipment purchase), CRA issues a refund.
Once registered, you can claim Input Tax Credits (ITCs) for GST/HST you paid on business expenses. This is a major benefit of registration — even if you're under the $30,000 threshold, early voluntary registration lets you claim ITCs immediately.
It depends on your situation. Voluntary registration is beneficial if: (1) You have significant startup expenses with HST and want ITCs immediately; (2) Your clients are businesses who can claim back the HST — adding HST to their invoices doesn't cost them anything; (3) You want to appear more established. It's less beneficial if your clients are individuals who can't claim ITCs and your expenses are minimal.
No — exports of services to non-Canadian clients are generally zero-rated for GST/HST purposes. You still report the revenue on your return but at a 0% rate. However, the rules are complex for digital services and it's worth consulting a tax professional if you have significant international revenue.
The Quick Method lets eligible businesses remit a fixed percentage of revenues (including HST) rather than tracking every ITC. For service businesses in Ontario, the Quick Method rate is approximately 8.8% on HST-included revenues. This simplifies bookkeeping significantly but may mean paying slightly more or less HST than the regular method.
You must keep all supporting documentation for 6 years from the end of the fiscal year. This includes: all sales invoices showing HST charged; all purchase receipts showing HST paid; bank statements; contracts; and GST/HST return copies. CRA can audit your GST/HST returns and will ask for documentation to support ITCs.
Failure to register when required is a compliance issue. CRA can assess HST that should have been collected plus interest and penalties. If a CRA audit discovers you should have been registered, they may assess retroactively to the date you first exceeded $30,000. It's always better to register promptly and contact CRA proactively if you realize you should have registered earlier.
For non-resident digital service providers selling to Canadian consumers (streaming, apps, software), a $30,000 threshold also applies — but it's based on Canadian sales only. Non-resident businesses providing digital services to Canadian consumers must register and collect GST/HST once they exceed the threshold. This affects platforms like Shopify merchants, app developers, and online course creators with Canadian customers.