GST/HST Registration for Canada Small Business (2026)

Introduction

The number that decides whether a Canadian business must start charging sales tax is $30,000 — a figure that hasn't moved since 1991, even as inflation has quietly pulled far more small businesses into mandatory GST/HST registration every year. This guide covers exactly when registration becomes mandatory, how the two threshold tests work, and what happens if you miss it.

Note: This is educational information, not tax advice for your specific situation. Consult a qualified accountant or tax professional before making registration decisions — provincial tax structures and your specific revenue mix both affect the right approach.

Table of Contents

1. The $30,000 Threshold
2. The Two Tests — And Why the Rule Feels Outdated
3. How to Register
4. Place of Supply — Which Rate to Charge
5. Input Tax Credits
6. What Happens If You Miss It
7. Common Mistakes
8. FAQ
9. Conclusion

The $30,000 Threshold

A business is a small supplier — and not required to register for or charge GST/HST — as long as its worldwide taxable revenue stays at or below $30,000 over the relevant period. The figure comes from section 148 of the Excise Tax Act and applies the same way across every province in 2026.

Critically, this is measured against your total taxable revenue, not profit — and it includes revenue from side work, contract work, and online sales, not just your primary business activity.

The Two Tests — And Why the Rule Feels Outdated

You lose small-supplier status — and must register — if either of these is true:

1. Your worldwide taxable revenue exceeds $30,000 in a single calendar quarter, or
2. Your worldwide taxable revenue exceeds $30,000 cumulatively across four consecutive calendar quarters

Tax professionals have publicly noted that this threshold has not been adjusted once since 1991, meaning it now pulls micro-enterprises and side businesses into mandatory compliance far earlier — in real terms — than it did when the rule was written. The rule is what it is until Parliament changes it, but it's worth knowing you're complying with a number set during a very different economic era.

How to Register

Registration happens online through the CRA's Business Registration Online (BRO) service:

1. You provide your business details
2. You receive a nine-digit Business Number (BN), if you don't already have one
3. You're issued a GST/HST program account (the "RT" account — typically RT0001)
4. Registration is usually instant

As of late 2025, the CRA no longer accepts GST/HST registrations by phone — online registration through BRO is the standard, and generally fastest, route.

You have 29 days from the sale that pushed you over the $30,000 threshold to complete registration. You can generally choose an effective date aligned with when you crossed the threshold, or — particularly useful if you're holding capital property at the time — an earlier date to recover Input Tax Credits on prior purchases. Retroactive registration going back up to 30 days is sometimes permitted.

Place of Supply — Which Rate to Charge

Once registered, the GST/HST rate you charge is based on your customer's location, not your own. An Ontario-based business invoicing an Alberta client charges Alberta's 5% GST — not Ontario's 13% HST. This "place of supply" rule applies to most services and needs to be checked per transaction if you serve customers across multiple provinces.

Input Tax Credits

Once registered, you can claim Input Tax Credits (ITCs) to recover the GST, and the federal portion of HST, that you pay on business expenses. A few important limits:

• Meals and entertainment are capped at 50% for ITC purposes
• Personal-use portions of mixed-use expenses don't qualify
• You need the supplier's GST/HST registration number on the receipt — a credit card statement alone isn't sufficient documentation
• In non-harmonized provinces, PST, QST, and RST are generally not recoverable through ITCs — only the GST/federal HST portion is

What Happens If You Miss It

If you cross $30,000 and don't register within 29 days, the CRA can assess you for the GST/HST you should have been collecting from that point forward — and you generally cannot go back and bill your customers for it after the fact. That amount comes directly out of your own pocket, on top of potential interest and penalties. GST/HST is also one of the CRA's most heavily audited compliance areas, making this a genuinely high-risk area to get wrong.

Common Mistakes

• Missing the registration deadline entirely, discovering the obligation only when a CRA notice arrives
• Claiming ITCs without proper receipts — a bank or credit card statement doesn't show the supplier's GST/HST number
• Recording collected GST/HST as revenue on the income statement — it's a liability you're holding on the government's behalf, not income
• Charging the wrong rate by defaulting to your own province's rate instead of applying the place-of-supply rule
• Missing the annual filer trap — even if your GST/HST return itself isn't due until three months after your fiscal year-end, the balance owed is still due by April 30

Conclusion

$30,000 sounds like a low bar precisely because it is one — a threshold frozen since 1991 now catches side hustles, freelancers, and early-stage businesses far sooner than it was ever designed to. The fix isn't complicated: track your rolling four-quarter taxable revenue as a routine part of your bookkeeping, not an afterthought, so registration happens on your terms and on time — not as a surprise CRA assessment.

If you'd like help setting up this tracking as part of your regular bookkeeping process, or registering correctly the first time, get in touch for a free consultation.