When Do I Have to Register for GST/HST as a Small Business?

❓ Question:

When must I register for GST/HST as a small business or supplier?

✅ Answer:

You must register when your total revenues exceed $30,000 in a single calendar quarter or over four consecutive quarters. You need to charge GST/HST starting from the sale that pushes you over the limit.

Avoid penalties by registering for GST/HST

If you're running a small business or freelancing in Canada, you may not need to collect GST/HST right away. The Canada Revenue Agency (CRA) classifies you as a small supplier if your total worldwide taxable revenues are $30,000 or less in the last four consecutive calendar quarters. This includes income from all associated businesses.

Once your revenue goes over that $30,000 threshold - either in one quarter or spread across four - you must register for a GST/HST number within 29 days. Importantly, you’re required to collect GST/HST starting with the transaction that puts you over the limit, not after you've registered.

Failing to do so can result in penalties, so tracking your revenue monthly is crucial. Registration is simple through the CRA's Business Registration Online (BRO) portal, and once you're registered, you can claim input tax credits on business expenses.

*It's best practice to consult a tax professional or CPA to know all the rules and regulations of business tax laws. You can also find more information at canada.ca

Want more information on starting up a small business? Visit our Pre-Launch post and download a free checklist

Let OWNR do the work for you; they can register your business and get your GST/HST number for you.

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