HST Registration Canada

When Do You Have to Register
for HST in Canada?

You must register for GST/HST once your taxable revenue passes $30,000 in a single calendar quarter or across four consecutive calendar quarters. Until then you are a small supplier and do not have to collect it. Rideshare and taxi drivers must register from their first fare, with no threshold.

The $30,000 Small Supplier Rule

As a Canadian sole proprietor, freelancer, or contractor, you are a small supplier and do not have to register for GST/HST until your worldwide taxable revenues exceed $30,000. Once you cross that threshold, you must register and start collecting GST/HST.

The $30,000 is your revenue before tax - it does not include GST/HST you collect on invoices. It covers all your commercial activities combined, not just one client or project.

Two separate tests - whichever triggers first

You must register when you exceed $30,000 in a single calendar quarter, OR when you exceed $30,000 over four consecutive calendar quarters. The timing of when you must start charging GST/HST is different for each test.

Test 1: Single Calendar Quarter

If your revenue in any single calendar quarter exceeds $30,000, you stop being a small supplier immediately - on the supply that crosses the threshold. There is no grace period.

What happens:

You charge GST/HST on the invoice that pushed you over $30,000 - including that same invoice. Your effective date of registration is the date of that supply. You must apply to register within 29 days of that date.

Example: You earn $28,000 in April and send a $5,000 invoice in May. That invoice crosses $30,000. You charge GST/HST on that $5,000 invoice and apply to register within 29 days of the invoice date.

Test 2: Four Consecutive Quarters

If no single quarter exceeds $30,000, but your total over any four consecutive calendar quarters does, you stop being a small supplier at the end of the month following the quarter in which you exceeded $30,000.

What happens:

You remain a small supplier until the last day of the month after the quarter you crossed $30,000. Your effective date of registration is the date of your first taxable sale after that. You must apply to register within 29 days of that effective date.

Example: Your four-quarter total crosses $30,000 during Q1 (January–March). You are still a small supplier through April 30. Your first sale on or after May 1 is your effective date - charge GST/HST from that sale. Apply to register within 29 days of that date.

Side-by-side: the two tests

Test	Stop being a small supplier	Start charging	Apply to register
Over $30k in one quarter	On the supply that crosses $30k	On that same supply	Within 29 days of that date
Over $30k across four quarters, but never in one	End of the month after that quarter	First supply after that date	Within 29 days of that effective date

Source: CRA - When to register for and start charging the GST/HST

Rideshare drivers: different rules

If you drive for Uber, Lyft, or any commercial ride-sharing platform (passenger transportation), the $30,000 threshold does not apply to those fares. You must register for GST/HST from your very first passenger fare - regardless of how little you earn. This is a CRA rule that catches many new drivers off guard.

That mandatory registration generally covers your ride-sharing fares only. If you also do other self-employed work and your combined taxable revenues are under $30,000, you are not automatically required to charge GST/HST on that other work - unless you request otherwise or your combined revenues blow the $30,000 tests.

Delivery-only drivers (DoorDash, Skip the Dishes, Uber Eats): Food delivery is not commercial ride-sharing. If you only do delivery and carry no passengers, the normal $30,000 tests apply to you.

What counts toward $30,000?

Not all revenue counts. Here is what does and does not push you toward the threshold:

Counts toward $30,000

Freelance and consulting income

Sales of goods or products

Rental income from commercial property

Contract work and services

Most business income

Does NOT count

Employment income (T4)

Sale of personal assets

Most residential rental income

Zero-rated supplies

Exempt supplies

What happens if you miss the deadline?

If you were required to register but did not, CRA can assess you for the GST/HST you should have collected - even if you never charged your clients. You become personally liable for the tax on all revenue earned after your effective date of registration.

Track your revenue so you always know where you stand. Once you approach $25,000 in the trailing four quarters, monitor monthly. At $28,000–$29,000, prepare to register.

Voluntary registration

You can register voluntarily before you hit $30,000. This makes sense if you have significant business expenses with GST/HST - you can claim Input Tax Credits (ITCs) and recover that tax. Many new businesses register from day one for this reason.

The trade-off is the ongoing obligation: you must file GST/HST returns on schedule and track HST collected and paid carefully from the date of registration.

HST rates by province (2026)

The rate you charge depends on where your client is located - the place of supply - not where you are based.

OntarioHST13%

Nova ScotiaHST14%

New BrunswickHST15%

Newfoundland and LabradorHST15%

Prince Edward IslandHST15%

British ColumbiaGST only5%

AlbertaGST only5%

ManitobaGST only5%

SaskatchewanGST only5%

QuebecGST only5% (QST separate)

An Ontario freelancer invoicing a BC client charges 5% GST, not 13% HST. Always confirm place-of-supply rules with your accountant for your specific situation.

Common questions

What is the GST/HST threshold for small businesses in Canada?

You must register for GST/HST once your total taxable revenue exceeds $30,000 CAD in a single calendar quarter or over four consecutive quarters. Below that, registration is optional.

Do I include GST/HST I collected in the $30,000 calculation?

No. The $30,000 threshold is based on your revenue before GST/HST. If you invoiced $30,000 plus $3,900 HST, only the $30,000 counts toward the threshold.

I have multiple businesses. Do I combine their revenue?

Yes. CRA looks at your total worldwide taxable revenues across all your commercial activities. If you freelance and also sell products online, both count toward the $30,000.

How do I register for GST/HST?

Online through CRA My Business Account, by phone at 1-800-959-5525, or by mail using Form RC1. Registration is free. See the CRA registration page for current instructions.

When do I start collecting GST/HST after registering?

From your effective date of registration - which is determined by which test triggered your requirement to register, as shown in the table above. CRA assigns this date when you register.

I just crossed $30,000 in a single quarter. How long do I have to register?

You must apply to register within 29 days of your effective date of registration - which is the date of the supply that pushed you over $30,000. Do not wait.

CRA source pages

When to register for and start charging the GST/HST →Register as a rideshare driver or taxi operator →

This page is a general summary, not tax advice. Always confirm your specific situation with a professional accountant.

Track your HST threshold with SnapBooks

SnapBooks tracks your taxable revenue and alerts you at $25,000 and $30,000. HST collected and ITCs in the same place. Built for Canadian sole proprietors filing T2125.

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Sources and further reading

Tax rules change. Check canada.ca for the current rules before you file.

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