GST/HST registration Canada: when you must register and how

Published Friday 31 July 2026

Table of contents

• What is GST/HST?
• Who needs to register for GST/HST
• How to register for GST/HST in Canada
• After you register: what to do next
• Common GST/HST registration mistakes to avoid
• Simplify GST/HST with Xero
• FAQs on GST/HST registration in Canada

Key takeaways

• You must register for a Goods and Services Tax/Harmonized Sales Tax (GST/HST) account once your worldwide taxable supplies exceed $30,000 in a single quarter or over four consecutive quarters. You have 29 days from the date you exceed the threshold to complete your registration.
• Five provinces charge HST (a combined federal and provincial rate), while the remaining provinces and territories charge GST at 5% plus their own provincial sales tax. Knowing which rate applies to your sales helps you charge correctly from the start.
• Registering voluntarily before you hit the $30,000 threshold lets you claim input tax credits (ITCs) on business purchases, which can reduce your overall costs.
• You can register online through the Canada Revenue Agency's (CRA) Business Registration Online service in about 15 to 20 minutes and receive your Business Number (BN) straight away.

What is GST/HST?

The Goods and Services Tax (GST) is a 5% federal tax that applies to most goods and services sold in Canada. The Harmonized Sales Tax (HST) combines the federal GST with a provincial portion into a single tax in participating provinces.

If your province doesn't participate in HST, you may still need to collect a separate Provincial Sales Tax (PST) or, in Quebec, the Quebec Sales Tax (QST). The GST portion is always administered by the CRA, but Revenu Quebec administers the QST. In provinces with PST, you register for and remit PST separately through the provincial government.

Which tax applies to your sales depends on where your customers are located and what you sell. The breakdown below covers the current rates across every province and territory.

GST/HST rates by province

Here are the current GST and HST rates across Canada as of 2026. For the most up-to-date figures, check the CRA's guide to GST/HST rates.

• Alberta: 5% GST (no provincial sales tax)
• British Columbia: 5% GST + 7% PST (collected separately)
• Manitoba: 5% GST + 7% Retail Sales Tax (RST) (collected separately)
• New Brunswick: 15% HST
• Newfoundland and Labrador: 15% HST
• Northwest Territories: 5% GST (no provincial sales tax)
• Nova Scotia: 14% HST
• Nunavut: 5% GST (no provincial sales tax)
• Ontario: 13% HST
• Prince Edward Island: 15% HST
• Quebec: 5% GST + 9.975% QST (QST administered by Revenu Quebec)
• Saskatchewan: 5% GST + 6% PST (collected separately)
• Yukon: 5% GST (no provincial sales tax)

Who needs to register for GST/HST

Most businesses in Canada need a GST/HST account, but the timing depends on your revenue. If you qualify as a small supplier, you can delay registration until you cross a specific revenue threshold. Once you do, registration becomes mandatory.

The $30,000 small supplier threshold

You're considered a small supplier if your total worldwide taxable supplies (including zero-rated supplies) don't exceed $30,000. The CRA measures this in two ways:

• Over four consecutive calendar quarters: If your total taxable revenue stays at or below $30,000 across any four consecutive quarters, you remain a small supplier.
• In a single calendar quarter: If your taxable revenue exceeds $30,000 in any single quarter, you're no longer a small supplier as of that date.

Once you exceed the threshold, you have 29 days to register for a GST/HST account. You also become responsible for collecting GST/HST on the sale that pushed you over the limit.

The $30,000 figure includes revenue from all your commercial activities worldwide, not just Canadian sales. If you operate more than one business, each business is assessed separately for the small supplier threshold.

Exceptions: who must register regardless of revenue

Some businesses must register for GST/HST straight away, even if their revenue falls below $30,000. These include:

• Taxi and ride-share drivers: You must register from the first dollar you earn, regardless of total revenue.
• Non-resident businesses: If you supply taxable goods or services in Canada and don't qualify as a small supplier under Canadian rules, you must register.
• Operators of certain amusement parks, festivals, or similar events: Specific circumstances apply.

Public service bodies and charities have different thresholds. Public service bodies (such as municipalities, universities, hospitals, and school authorities) must register once their taxable supplies exceed $50,000 over four consecutive quarters. Registered charities must register when their gross revenue exceeds $250,000 or their taxable supplies exceed $50,000 in a single year.

When voluntary registration makes sense

Even if your revenue sits below $30,000, registering voluntarily can save you money. Once you have a GST/HST account, you can claim input tax credits (ITCs) to recover the GST/HST you pay on business expenses like equipment, supplies, and professional services.

Voluntary registration makes the most sense if you:

• have significant startup costs or regular business expenses that include GST/HST
• sell primarily to other GST/HST-registered businesses (they expect to see tax on your invoices)
• plan to grow past the $30,000 threshold soon and want to start collecting and claiming credits early

If most of your customers are individual consumers, registering early means adding tax to your prices, which may affect your competitiveness. Weigh the ITC savings against the pricing impact before you decide.

How to register for GST/HST in Canada

Registering for a GST/HST account is straightforward. You can complete the process online in about 15 to 20 minutes and receive your Business Number straight away once the registration is approved.

What you need before you register

Gather the following information before you start the registration process:

• Your Social Insurance Number (SIN) or, for corporations, your business incorporation number
• Your business name, address, and type of business (sole proprietorship, partnership, or corporation)
• Your fiscal year-end date
• An estimate of your annual revenue
• The effective date of registration (the date you exceeded the threshold, or the date you want voluntary registration to begin)
• Details about your business activities, including the types of goods or services you provide

Step-by-step: registering online through CRA

The fastest way to register is through the CRA's Business Registration Online (BRO) service. Here's how to do it:

1. Go to the Business Registration Online page on the Government of Canada website.
2. Select "Register a new business" if you don't already have a BN, or "Add a GST/HST account" if you have an existing BN.
3. Enter your personal identification details, including your SIN and date of birth.
4. Provide your business information, such as your business name, address, and business type.
5. Choose your reporting period (annual, quarterly, or monthly) and your fiscal year-end date.
6. Review your information and submit the registration.
7. Save or print your confirmation, which includes your BN and GST/HST account number.

Your BN is usually issued immediately after you submit the registration. You'll use this number on all GST/HST returns, remittances, and correspondence with the CRA.

Registration by phone is no longer available. The CRA now directs all registrations through the online or mail-based processes.

Registration by mail

If you prefer to register by mail, you can complete Form RC1, Request for a Business Number and Certain Program Accounts. Download the form from the CRA website, fill it out, and mail it to your nearest tax services office.

Mail-based registration takes longer than the online process, typically several weeks. If you're close to your 29-day deadline, the online option is the better choice to stay compliant. Keep a copy of the completed form and any supporting documents for your records before mailing.

After you register: what to do next

Once you have your GST/HST account, you need to start collecting tax, filing returns, and tracking your credits. Staying on top of these tasks helps you avoid penalties and recover the tax you've paid on business expenses.

Charging and collecting GST/HST

After registration, you must charge GST/HST on all taxable sales of goods and services. The rate you charge depends on the province or territory where the supply is made, not where your business is located.

Include the GST/HST amount on every invoice you issue. Your invoices should show your BN, the tax rate applied, and the total tax charged. Keeping accurate records of every transaction makes filing and claiming credits much simpler.

Some supplies are zero-rated (taxed at 0%) or exempt from GST/HST entirely. Zero-rated supplies include basic groceries, prescription drugs, and certain medical devices. Exempt supplies include most health and dental services, childcare, and certain financial services.

The distinction matters for your small business bookkeeping. With zero-rated supplies, you can still claim ITCs on related business expenses. With exempt supplies, you can't claim ITCs on the expenses tied to those sales. Categorizing your supplies correctly from the start saves time at filing.

Filing GST/HST returns

The CRA assigns you a reporting period based on your annual revenue. You can also request a different frequency if it suits your business better. The three options are:

• Annual filing: For businesses with $1,500,000 or less in annual taxable supplies. Your return and payment are due three months after the end of your fiscal year.
• Quarterly filing: For businesses with $1,500,001 to $6,000,000 in annual taxable supplies. Returns are due one month after the end of each quarter.
• Monthly filing: For businesses with more than $6,000,000 in annual taxable supplies. Returns are due one month after the end of each reporting period.

File your return through the CRA's My Business Account portal or through compatible accounting software. If you owe GST/HST, include your payment with the return. If the CRA owes you a refund (because your ITCs exceed the tax you collected), you'll receive it after the return is processed.

Claiming Input Tax Credits

ITCs let you recover the GST/HST you paid on purchases and expenses related to your commercial activities. This includes costs such as office supplies, equipment, rent, professional fees, and software subscriptions.

To claim ITCs, you need to keep proper documentation for every expense. Each receipt or invoice must show the supplier's name, BN, the date of the transaction, the amount of GST/HST paid, and a description of the goods or services. For purchases under $30, a simplified receipt with less detail is acceptable, but it's good practice to keep full records regardless.

You must retain all supporting documents for at least six years from the end of the tax year they relate to. The CRA can request these records during an audit, and incomplete documentation can result in denied claims.

Common GST/HST registration mistakes to avoid

Staying compliant with GST/HST rules is manageable when you know what to watch for. Here are the most common missteps and how to steer clear of them:

• Missing the 29-day registration deadline: Once your taxable supplies exceed $30,000, you have 29 days to register. Late registration can lead to penalties and interest on uncollected tax. Track your revenue closely so you know exactly when you cross the threshold.
• Failing to track cumulative revenue: The CRA looks at revenue over four consecutive quarters, not just calendar years. If you don't monitor your running total, you could exceed the threshold without realizing it. Set up regular revenue reviews, ideally monthly, to stay ahead.
• Charging GST/HST before registering: Collecting tax without a valid GST/HST account creates complications. You can't remit the tax properly, and your customers can't claim ITCs on those amounts. Register first, then start charging.
• Applying the wrong tax rate: The rate depends on the place of supply, not your business location. Charging 5% GST when you should be charging 13% HST (or the other way around) leads to shortfalls or overcharges on your returns.
• Keeping poor records: Incomplete or missing documentation makes it harder to file accurate returns and claim ITCs. It also increases your risk during a CRA audit. Store all invoices, receipts, and transaction records in an organized system and back them up regularly.

Simplify GST/HST with Xero

Managing GST/HST doesn't have to be time-consuming. Xero accounting software helps you handle tax calculations, invoicing, and filing so you can focus on running your business.

With Xero, you can set the correct GST/HST rates for each province, and the software applies them automatically to your invoices and expenses. Bank feeds pull your transactions in daily, making it faster to reconcile accounts and track taxable supplies against the $30,000 threshold.

When it's time to file, Xero generates GST/HST reports that summarize the tax you've collected and the ITCs you can claim. You can review the numbers, spot any discrepancies, and file with confidence.

Xero also connects with your bank and integrates with other business tools, so your financial data stays in one place. Whether you're filing annually or quarterly, having accurate, up-to-date records makes the process faster and less stressful.

Get one month free

FAQs on GST/HST registration in Canada

Here are answers to some of the most common questions about GST/HST registration for Canadian small businesses.

Do I need to register for GST/HST if I'm a freelancer?

Yes. Freelancers, sole proprietors, and contractors all follow the same $30,000 threshold rules. Your business structure doesn't affect when registration becomes mandatory.

Can I backdate my GST/HST registration?

The CRA allows you to request an effective date up to 30 days in the past when you register. This is useful if you recently crossed the threshold and need your registration to cover sales already made.

What happens if I don't register on time?

The CRA can assess penalties and interest on the GST/HST you should have collected from the date you were required to register. You'll also need to remit the tax you should have charged, even if you didn't collect it from your customers.

How do I know which GST/HST rate to charge?

The rate depends on the place of supply, which is generally where your customer receives the goods or services. For physical goods, it's the delivery location. For services, the rules vary depending on the type of service provided.

Can I cancel my GST/HST registration later?

You can request to close your GST/HST account if your taxable supplies fall back below $30,000 and you've been registered for at least one year. You'll need to file a final return covering the period up to your cancellation date.

Is there a difference between a GST number and a Business Number?

Your BN is a nine-digit number that identifies your business with the CRA. Your GST/HST account number adds "RT" followed by four digits to your BN (for example, 123456789RT0001). The BN is the base identifier, and the GST/HST account is one of several program accounts attached to it.