Question 1

When should I register for GST/HST in Canada?

Accepted Answer

You must register for GST/HST when your taxable revenues exceed $30,000 in a single calendar quarter, or over four consecutive calendar quarters. Once you cross this threshold, you have 29 days to register with the CRA and must begin charging GST/HST immediately. Certain businesses — including taxi and ride-sharing operators — must register regardless of revenue. Exempt supplies do not count toward the $30,000 threshold.

Question 2

Can I register for GST/HST voluntarily if my revenue is below $30,000?

Accepted Answer

Yes. Any business earning taxable revenues can register voluntarily, even below the $30,000 small supplier threshold. The main benefit of voluntary registration is the ability to claim Input Tax Credits (ITCs) — you recover the GST/HST you pay on business expenses. This is especially valuable for businesses with significant startup or operating costs. The trade-off is the added obligation of collecting, filing, and remitting tax on schedule.

Question 3

How do I register for GST/HST in Canada?

Accepted Answer

The fastest method is Business Registration Online (BRO) at canada.ca, using your CRA My Account login. You will need your SIN, business name, business structure, address, estimated annual revenue, and the date you want registration to take effect. Your Business Number (BN) is issued immediately — save it, as it is not mailed. You can also register by phone at 1-800-959-5525, or by submitting Form RC1. Non-residents have a separate registration process through the CRA.

Question 4

Should I charge GST/HST on invoices to customers outside Canada?

Accepted Answer

Generally, no. Exports of goods and services to non-residents are typically zero-rated under GST/HST rules — the rate is 0%, so you do not charge tax, but you can still claim ITCs on related business expenses. Services performed entirely outside Canada are not subject to GST/HST. However, if a service has a 'place of supply' inside Canada, it may still be taxable even if the customer is foreign. Keep documentation proving goods were exported or services were rendered to non-residents.

Question 5

What is the difference between GST, HST, PST, and QST?

Accepted Answer

GST (Goods and Services Tax) is the federal 5% tax applied across all provinces and territories. HST (Harmonized Sales Tax) combines the federal GST with a provincial portion into a single tax: Ontario charges 13%, while New Brunswick, Nova Scotia, Newfoundland & Labrador, and PEI each charge 15%. PST (Provincial Sales Tax) is a separate provincial tax charged alongside GST in British Columbia (7%), Manitoba (7%, called RST), and Saskatchewan (6%) — each province administers its own PST registration and filing. QST (Quebec Sales Tax) is Quebec's provincial tax at 9.975%, administered separately by Revenu Québec.

Question 6

What are input tax credits (ITCs) and how do I claim them?

Accepted Answer

Input tax credits (ITCs) let GST/HST-registered businesses recover the GST/HST paid on business purchases and operating expenses. For example, if you pay $13 HST on office supplies used in your business, you can claim that $13 back. To qualify, the expense must be used at least 90% for commercial activity. ITCs are claimed on line 106 of your GST/HST return. Common eligible expenses include: rent, equipment, software, professional fees, and business travel. You cannot claim ITCs on personal expenses or purchases related to exempt supplies.

Question 7

How often do I need to file my GST/HST return?

Accepted Answer

The CRA assigns filing frequency based on annual taxable revenue: annual reporting for revenue of $1.5 million or less (most small businesses and freelancers); quarterly for revenue between $1.5 million and $6 million; monthly for revenue over $6 million. You can request more frequent filing if preferred. For annual filers who are sole proprietors with a December 31 year-end, the return is due June 15 but any balance owing must be paid by April 30. Monthly and quarterly filers must file and pay within one month of the reporting period end.

Question 8

What is the difference between zero-rated and exempt supplies for GST/HST?

Accepted Answer

Both result in no GST/HST charged to the customer, but the treatment of the supplier differs significantly. Zero-rated supplies (basic groceries, prescription drugs, exports) are taxed at 0% — the supplier charges no GST/HST but can still claim full ITCs on related business expenses. Exempt supplies (residential rent, most healthcare services, financial services, educational services) are not subject to GST/HST, and the supplier cannot claim ITCs on expenses tied to those supplies. This distinction is critical for businesses that make a mix of taxable and exempt supplies.

Question 9

Do I charge GST/HST when invoicing other Canadian businesses?

Accepted Answer

Yes — if you are registered for GST/HST and your supply is taxable, you charge GST/HST to all Canadian customers, whether they are consumers or businesses. The difference is that a GST/HST-registered business customer can claim an ITC to recover the tax, making it cost-neutral for them. Always include your GST/HST registration number on invoices so your business clients can support their ITC claims. Unregistered customers cannot recover the tax.

Question 10

What happens if I collect GST/HST but do not remit it to the CRA?

Accepted Answer

Failing to remit collected GST/HST is treated seriously by the CRA. Penalties include a late-remitting penalty of up to 4% of the overdue amount, plus compound daily interest. Directors of corporations that fail to remit can be held personally liable under the director liability rules. The CRA may register a lien on your assets or garnish your bank accounts. If you are having difficulty paying, contact the CRA before the due date — payment arrangements are available and the CRA is generally willing to work with businesses that reach out proactively.

GST / HST / PST / QST Calculator

Registration Threshold

Zero-Rated Supplies

Exempt Supplies