Most Canadian businesses must register for a GST/HST account after they stop qualifying as a small supplier. For most businesses, the small-supplier threshold is $30,000 in taxable supplies.
The date on which a business exceeds the threshold matters. Different rules apply when the threshold is exceeded in one calendar quarter and when it is exceeded gradually over several quarters.
What is the GST/HST registration threshold?
For most businesses, you remain a small supplier if your total taxable supplies do not exceed $30,000 over four consecutive calendar quarters.
The calculation generally includes:
- Taxable sales, leases and other supplies
- Zero-rated supplies
- Taxable supplies made by associated persons or businesses
It generally does not include exempt supplies, financial services, sales of capital property or goodwill from the sale of a business.
The $30,000 threshold applies to revenue from taxable supplies, not business profit. Expenses are not deducted when determining whether the threshold has been exceeded.
What happens when you exceed $30,000 in one quarter?
If your taxable supplies exceed $30,000 in a single calendar quarter, you stop being a small supplier on the sale that causes you to exceed the threshold.
You must charge GST/HST on that sale. Your effective registration date must be no later than the date of the sale that put you over $30,000.
Example
A business has made $28,000 in taxable sales during the current calendar quarter. It then makes another taxable sale of $4,000.
The new total is $32,000. Because the business exceeded the threshold in one quarter, it must charge GST/HST on the entire $4,000 sale that caused it to exceed the threshold.
What happens when you exceed $30,000 over several quarters?
A business may exceed $30,000 over the previous four or fewer consecutive calendar quarters without exceeding it in any single quarter.
In this situation, the business stops being a small supplier at the end of the month following the quarter in which it exceeded the threshold. It must register and begin charging GST/HST no later than its first taxable supply after it stops being a small supplier.
Example
A business reports the following taxable supplies:
| Calendar quarter | Taxable supplies |
|---|---|
| January to March | $8,000 |
| April to June | $9,000 |
| July to September | $8,000 |
| October to December | $7,000 |
| Total | $32,000 |
The business exceeded $30,000 over four consecutive quarters but did not exceed the threshold in one quarter. It remains a small supplier until the end of January and must begin charging GST/HST on its first taxable supply after that date.
Can a small business register voluntarily?
A business that remains below the $30,000 threshold may generally register voluntarily if it makes taxable supplies in Canada.
After voluntarily registering, the business must:
- Charge GST/HST on its taxable supplies
- File GST/HST returns
- Remit the net tax it owes
- Keep the records required by the CRA
- Usually remain registered for at least one year
A registered business may also be eligible to claim input tax credits to recover GST/HST paid or payable on qualifying business purchases and operating expenses.
A business that does not register generally does not charge GST/HST and cannot claim input tax credits.
Businesses that provide only exempt supplies generally cannot register for a GST/HST account.
Are there exceptions to the small-supplier threshold?
Yes. Some businesses must register even when their taxable revenue is below $30,000.
Self-employed taxi operators and commercial ride-sharing drivers must register for GST/HST from the day they begin providing taxable passenger transportation services. The normal small-supplier exemption does not apply to these services.
Special registration rules may also apply to non-residents, event admissions, public service bodies, charities and other organizations. Charities and public institutions use different small-supplier tests, including a $50,000 taxable-supplies test and a separate $250,000 gross-revenue test.
Is a business number the same as a GST/HST account?
A business number, commonly called a BN, identifies a business in its dealings with the Canada Revenue Agency. A GST/HST account is one of the CRA program accounts connected to that business number.
If you already have a business number, you use it when registering for a GST/HST account. If you do not have one, the CRA can issue a business number as part of the GST/HST registration process.
Registering a business provincially or incorporating a company does not necessarily mean that it is registered to collect GST/HST. The GST/HST program account must also be opened with the CRA.
How do you register for GST/HST?
The CRA recommends registering online through Business Registration Online. Before registering, you should determine:
- Whether registration is mandatory or voluntary
- Your effective registration date
- Your estimated annual taxable revenue
- Your fiscal year
- Your main business activity
- Whether you already have a business number
After registration, you are responsible for charging the correct GST/HST rate, filing returns and remitting the tax collected. Depending on where a taxable supply is made, the applicable rate may be GST or HST.
You can use our Canadian sales tax calculator to check current GST, HST, PST, RST and QST rates and calculate the tax included in a sale.
Before registering
The registration rules can depend on the type of business, the supplies it makes and how quickly it exceeds the applicable threshold. Review the CRA requirements or consult a qualified tax professional if you are uncertain about your effective registration date.
Information last checked: August 19, 2026.
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