Most new businesses in Canada don’t have to charge GST/HST right away. Under the small supplier rules, registration generally becomes mandatory once your sales pass $30,000. But how you pass it matters.

Two ways to cross the line

You generally stop being a small supplier when your worldwide taxable sales (including those of associated businesses) exceed $30,000:

  1. In a single calendar quarter — you generally must register and charge tax starting with the sale that took you over the threshold.
  2. Over four consecutive calendar quarters — you generally have a short window: you must register, and start charging tax, by the end of the month following the quarter in which you crossed it.

“Taxable sales” includes zero-rated sales, but not exempt supplies. When in doubt, include it and ask.

Some businesses must register regardless

Certain activities require registration from the first dollar — for example, taxi and ride-sharing services. If that’s you, the $30,000 threshold doesn’t apply.

Voluntary registration

You can register before you have to. The benefits:

  • You can claim input tax credits for GST/HST paid on business purchases
  • Some business clients expect suppliers to be registered

The trade-offs:

  • You must charge tax to customers — which matters if they are consumers who can’t claim it back
  • You take on filing obligations, even in quiet periods

After you register

You’ll be assigned a reporting period — monthly, quarterly or annual — mostly based on your revenue. In Ontario, the HST rate is 13%. Rates elsewhere vary by province.

Keep collected tax separate from your operating cash. GST/HST you collect isn’t yours; it’s held for the government until your return is due.

This article is general information, not tax advice for your specific situation.