When to Register for GST in Canada

Running a business in Canada means navigating the Goods and Services Tax (GST) or Harmonized Sales Tax (HST). Knowing when to register is crucial for compliance and for taking advantage of tax benefits.

The Small Supplier Rule

• You are considered a small supplier if your gross revenue is less than $30,000 over four consecutive calendar quarters.

• As a small supplier, you are not required to register for GST/HST.

• Once you exceed the $30,000 threshold, you must register within 29 days.

Mandatory Registration Triggers

You must register if:

• Your business earns over $30,000 in a single quarter.

• Your business earns over $30,000 across four consecutive quarters.

• You make taxable sales, leases, or supplies in Canada (unless they are exempt, such as certain health or financial services).

Voluntary Registration

Even if you haven’t reached the threshold, you may choose to register. Benefits include:

• Ability to claim Input Tax Credits (ITCs) on GST/HST paid for business expenses.

• Enhanced credibility with clients and suppliers.

• Streamlined compliance if you expect to cross the threshold soon.

Penalties for Late Registration

Failing to register once required can lead to:

• CRA assessing GST/HST on your taxable sales as if you had charged it.

• Owing back taxes, interest, and penalties.

Provincial Differences

• GST (5%) applies across Canada.

• HST (13–15%) applies in provinces like Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and PEI.

• Quebec applies GST plus its own QST separately.

Key Takeaway

Track your revenue carefully from day one. Once you cross the $30,000 threshold, registration is mandatory. Voluntary registration can be strategic if you want to claim ITCs or build credibility.