GST/HST for Small Business: When to Register and Charge

GST/HST is a sales-tax system, not an income-tax system. If your business is registered, you generally charge GST/HST on taxable sales, collect it from customers, claim eligible input tax credits, and remit the net amount to the CRA.

When You Must Register

CRA's general small-supplier threshold is $30,000 in taxable supplies over a single calendar quarter or over four consecutive calendar quarters. Some activities have special rules, so use the CRA registration guidance if your business is close to the threshold or has mixed taxable and exempt supplies.

Situation	Typical action
Under $30,000 taxable supplies	Often a small supplier; registration may be optional
Over $30,000 in one quarter	Usually must register and charge on the sale that exceeded the threshold
Over $30,000 across four quarters	Usually must register after the threshold is exceeded

Input Tax Credits

Input tax credits let a registrant recover GST/HST paid on eligible business purchases. For example, a business that collects $1,300 of HST from customers and has $260 of eligible HST on expenses may remit roughly $1,040, subject to the CRA rules and method used.

Quick Method

The quick method can reduce paperwork for eligible small businesses, but it changes how net tax is calculated and limits most operating-expense ITCs. It can be helpful, neutral, or worse depending on your expense profile and province.

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.

Sources: CRA when to register and charge GST/HST; CRA input tax credits; CRA quick method.