Do I need to register for GST/HST? ($30,000 rule)
The small supplier limit explained plainly. How $30,000 is counted, when you must register, and why some people register early.
Most new businesses don't have to charge GST/HST at first. You are a small supplier until your taxable sales pass $30,000. Then you must register, charge it and file returns.
How the $30,000 is counted
- It is your sales before tax, not your profit.
- It counts taxable sales, including zero-rated ones (taxed at 0%). Exempt sales don't count.
- It includes sales of businesses associated with yours.
- It is counted by calendar quarter (January to March, April to June, and so on), not your business year.
When you must register
There are two tests. Whichever you pass first applies.
Over $30,000 in a single calendar quarter. You stop being a small supplier right away. You must charge GST/HST on the sale that took you over, and register within 29 days.
Over $30,000 across the last four calendar quarters (but not in one quarter). You stop being a small supplier at the end of the month after the quarter you went over. Your registration must take effect no later than your first sale after that, so register before then and charge GST/HST from that sale on.
Taxi and ride-share drivers must register from their first fare, whatever their sales.
How to register
Register online with CRA's Business Registration Online, or by phone. You'll get a number like 123456789 RT0001. Then add it in CollabNorth under Settings, then Tax registrations, with the date it starts.
Should you register early?
You can register before you reach $30,000. The upside: you can claim back the GST/HST you pay on tools, materials, vehicles and software. See Input tax credits explained. The downside: you charge tax to customers and file returns.
If most of your customers are registered businesses, they claim back the tax you charge, so it costs them nothing. Early registration often makes sense for trades with real material costs.
What CollabNorth does
- Home and Tax time warn you when your sales over the last four quarters reach about $24,000, and again if you pass $30,000.
- If CRA reminders are on, you also get an email at $25,000 and at $30,000.
- Until you add a GST/HST number, invoices don't add GST/HST.
This is general information to help you keep your own records. It is not tax or legal advice.
Based on: CRA: When to register for and start charging the GST/HST
Last checked: 2026-10-12