GST/HST for Small Business Canada

Direct answer: Most Canadian businesses must register for GST/HST when worldwide taxable supplies exceed $30,000 in one calendar quarter or over the previous four or fewer consecutive calendar quarters. Once registered, you charge the correct GST/HST rate on taxable supplies, claim eligible input tax credits, file returns and remit net tax to CRA.

Primary sources: CRA: When to register for GST/HST; CRA: Small-supplier rules.

Registration timing table

Primary sources: CRA: When to register for GST/HST; CRA: Small-supplier rules.

CRA's general small-supplier test for most businesses looks at taxable supplies before expenses. It includes worldwide taxable supplies and most zero-rated supplies, and can include associated businesses. It does not generally include financial services, sales of capital property or goodwill from selling a business.

Situation	Small-supplier result	When GST/HST starts
You do not exceed $30,000 over four consecutive calendar quarters	You are generally a small supplier	Registration is usually optional if you make taxable supplies.
You exceed $30,000 in one calendar quarter	You stop being a small supplier on the supply that crosses the threshold	Your effective registration date is no later than that supply, and you charge GST/HST on that supply.
You exceed $30,000 over the previous four or fewer consecutive quarters, but not in one quarter	You stop being a small supplier at the end of the month after the quarter where you crossed the threshold	Your effective registration date is no later than the first supply after you stop being a small supplier.

CRA examples also state that registration is due within 29 days of the effective registration date. Charities, public institutions, taxi/ride-share activity, non-residents, digital platforms and mixed exempt/taxable businesses can have special rules.

Input tax credit example

Primary sources: CRA: Input tax credits.

Input tax credits let registrants recover GST/HST paid or payable on eligible purchases used in commercial activities. Example: an Ontario business collects $1,300 of HST on taxable sales and paid $260 of eligible HST on business expenses. Under the regular method, the rough net tax is $1,300 collected - $260 ITCs = $1,040 remitted.

What to do before registering voluntarily

Question	Why it matters
Are your customers businesses or consumers?	Business customers may recover GST/HST through ITCs; consumers usually feel the full price increase.
Do you have meaningful taxable expenses?	ITCs can recover GST/HST on eligible commercial purchases.
Are your supplies taxable, zero-rated or exempt?	Exempt supplies generally do not support normal GST/HST registration and ITCs.
Can your bookkeeping handle filings?	Registration adds invoice, filing, remittance and record requirements.

Quick method caveat

Primary sources: CRA: Quick method of accounting.

The quick method can simplify GST/HST accounting for eligible small businesses, but it is not just the regular method with less paperwork. It uses remittance rates and usually prevents claiming ITCs on most operating expenses, although some capital purchases may still qualify. It can be better or worse depending on your province, customer mix and expense profile.

Common mistakes

• Using profit instead of sales: the $30,000 small-supplier test uses taxable supplies before expenses.
• Missing the one-quarter rule: if you cross $30,000 in one quarter, the sale that crosses the line is part of the GST/HST period.
• Claiming ITCs without documentation: CRA requires enough invoice and supplier information to support ITC claims.
• Mixing GST/HST with income tax: GST/HST collected is a liability, not revenue you get to keep.

Methodology and limitations

Verified July 29, 2026. This guide summarizes CRA's general GST/HST rules for most small businesses and uses Ontario HST examples for arithmetic. It does not decide place-of-supply rules, exempt vs zero-rated classification, selected listed financial institution rules, public service body rules, Quebec QST obligations, or whether the quick method is optimal for your business.

Try your numbers

Use the GST/HST Calculator to add or remove tax for every Canadian province and territory. Related reading: GST vs HST vs PST explained and self-employed taxes in Canada.

Sources: CRA when to register and charge GST/HST; CRA GST/HST memorandum 2-2 small suppliers; CRA input tax credits; CRA quick method of accounting.