Quick answer: You must register for GST/HST when your total worldwide taxable supplies (from all your businesses combined) exceed $30,000 in either any single calendar quarter or any rolling four consecutive calendar quarters. Below that you are a “small supplier” and not required to register, although you can still register voluntarily to claim input tax credits (ITCs).
What this means: The $30,000 includes zero-rated supplies (basic groceries, exports — taxed at 0%) but excludes exempt supplies (most financial services, long-term residential rent, day care, used residential housing sales). Once you cross the threshold, you must register within 30 days. Taxi drivers and rideshare drivers must register from day one regardless of revenue. Non-resident performers and businesses without a permanent establishment have separate rules.
What to do next: Register your business and obtain a GST/HST account online. GST/HST registration tool →
The $30,000 small supplier threshold
Under Excise Tax Act Part IX, you are a “small supplier” if your total worldwide taxable supplies (from your business plus any associated person) stay at or below $30,000 across the relevant testing window. Small suppliers are not required to register, charge, or remit GST/HST. Once you exceed the threshold under either of the two tests below, registration becomes mandatory.
The two tests: single quarter and four consecutive quarters
| Test | What CRA looks at | When registration becomes mandatory |
|---|---|---|
| Single calendar quarter test | Total taxable supplies in any one calendar quarter (Jan-Mar, Apr-Jun, Jul-Sep, Oct-Dec) | You cease to be a small supplier immediately on the supply that pushes the calendar quarter over $30,000. You must charge GST/HST on that supply and all subsequent supplies. Register within 30 days. |
| Four consecutive quarters test | Total taxable supplies in any rolling window of four consecutive calendar quarters | You cease to be a small supplier at the end of the month following the quarter in which the threshold was exceeded. You have a 30-day grace period and must register within 30 days. |
Whichever test trips first triggers mandatory registration. The single-quarter test usually trips during a one-time large project or a busy launch month; the four-quarter test trips for steady businesses that gradually scale across a year.
Example 1: single calendar quarter trip
A freelance designer earns $35,000 from one large project in Q2 2026 (April-June). On the supply that takes Q2 over $30,000, the designer ceases to be a small supplier immediately. GST/HST must be charged on that supply and all later supplies. The designer must register within 30 days of crossing the threshold.
Example 2: four consecutive quarters trip
A sole proprietor consultant invoices $7,500 each quarter through 2026. The single-quarter test never trips (each quarter is under $30,000), but the four consecutive quarters total $30,000 by the end of Q4. The consultant ceases to be a small supplier at the end of the month following Q4 (i.e., end of January 2027). They have until the end of February 2027 to register and start charging GST/HST.
Zero-rated vs exempt supplies
This distinction is the most-missed nuance in the small supplier rule:
| Category | Counts toward $30,000? | GST/HST charged? | ITCs available? | Examples |
|---|---|---|---|---|
| Standard taxable | Yes | 5%-15% by province | Yes (after registration) | Most goods and services |
| Zero-rated | Yes | 0% | Yes (after registration) | Basic groceries, prescription drugs, medical devices, exports outside Canada, international transportation |
| Exempt | No | None | No | Most financial services, long-term residential rent, day care, music lessons, most health and dental services by licensed practitioners, used residential housing sales |
If your business sells only exempt supplies (e.g., a residential landlord), you cannot register for GST/HST even if your rent revenue exceeds $30,000. If you sell zero-rated supplies (e.g., an exporter to the US), they count toward the threshold but you charge 0% — and you can claim ITCs on your business inputs once registered.
Voluntary registration
Even below $30,000, you can voluntarily register for GST/HST. The trade-off:
- Pro: You can claim input tax credits (ITCs) for GST/HST paid on business inputs (equipment, supplies, professional services, utilities).
- Con: You must charge GST/HST on your sales and remit it to CRA on a periodic return.
Voluntary registration usually pays off when (a) your customers are GST/HST-registered businesses (they recover the tax you charge through their own ITCs), or (b) you have significant business inputs subject to GST/HST.
Freelancers and sole proprietors
Freelancers and sole proprietors track GST/HST revenue on their personal calendar — the small supplier test runs from the start of business. Income from employment does NOT count toward $30,000 of taxable supplies; only self-employment / business revenue does. See GST/HST $30,000 threshold for freelancers for detailed timing and the registration mechanics. Self-employment tax basics are in self-employment income in Canada.
Rideshare and taxi drivers: register from day one
Despite the general $30,000 rule, taxi and rideshare drivers (Uber, Lyft, etc.) must register for GST/HST from day one, regardless of revenue. This rule applies to anyone supplying “taxi services” or “commercial ride-sharing services” (added in 2017 under Excise Tax Act s. 240(1.1)). The $30,000 small supplier exception does not apply to these drivers.
Once registered, rideshare drivers charge GST/HST on each fare. Most platforms (Uber, Lyft) collect and remit GST/HST on the driver’s behalf, but the driver remains responsible for filing returns and reconciling.
Non-residents and digital economy rules
Since July 1, 2021, foreign digital platforms and non-resident vendors selling to Canadian consumers must register for GST/HST under a simplified registration regime once Canadian sales exceed $30,000 over any 12-month period. This applies to streaming services, app stores, e-commerce platforms, and short-term accommodation platforms.
For non-residents without a permanent establishment in Canada selling to Canadian businesses or consumers, separate rules apply. Consult CRA Guide RC4022 GST/HST General Information for Registrants.
How to register
- Online via CRA Business Registration Online (BRO). Effective June 17, 2024, individuals with a SIN starting with 9 can also use BRO. You obtain a business number (BN) and a GST/HST account in one transaction.
- By phone at the CRA business enquiries line (1-800-959-5525).
- By mail using Form RC1, Request for a Business Number.
At registration you choose your reporting period: annual (most freelancers under $1.5M), quarterly, or monthly. You also choose your fiscal year-end for GST/HST purposes (usually December 31 to match the T1).
Common mistakes
- Forgetting the single-quarter test. A one-time $35,000 invoice in a quarter trips the threshold even if annual revenue is otherwise low.
- Counting employment income toward $30,000. Employment income does not count. Only business / self-employment revenue does.
- Missing the rideshare / taxi day-one rule. No $30,000 threshold for taxi or rideshare drivers; they must register from day one.
- Ignoring zero-rated supplies in the threshold count. A grocery exporter selling $40,000 of basic groceries (zero-rated) is over the $30,000 threshold even though they would charge 0% on sales.
- Registering when you only sell exempt supplies. You cannot. Exempt suppliers (residential landlords on long-term rent, most financial services providers, etc.) are outside the GST/HST system.
- Late registration. Once you cease to be a small supplier, you must register within 30 days. Late registration means CRA backdates your registration to the date you crossed the threshold and you must remit GST/HST on supplies made after that date.
- Skipping voluntary registration when your customers are businesses. If your clients are GST/HST-registered businesses, they recover the tax via their own ITCs, so charging them GST/HST is “invisible.” You can then claim ITCs on your inputs, net positive.
Frequently asked questions
What is the GST/HST registration threshold in 2026?
$30,000 of taxable supplies in any single calendar quarter or any rolling four consecutive calendar quarters. The threshold is statutory under Excise Tax Act s. 148 and not indexed.
Do I have to register if I’m below $30,000?
No, you are a small supplier and registration is optional. You can register voluntarily to claim ITCs on business inputs.
Does employment income count toward the $30,000?
No. Only business / self-employment taxable supplies count. Employment income (T4 income) is not a taxable supply.
Are zero-rated and exempt supplies the same?
No. Zero-rated supplies count toward the $30,000 and are taxed at 0% (with ITC eligibility once registered). Exempt supplies do not count and are outside the GST/HST system (no ITCs available).
Do rideshare drivers have to register?
Yes, from day one of operations, regardless of revenue. The $30,000 small supplier threshold does not apply to taxi or commercial ride-sharing services.
How quickly must I register after crossing the threshold?
Within 30 days of ceasing to be a small supplier (either the day you crossed the single-quarter threshold or the end of the month following the four-quarter threshold trip).
Frequently asked questions
- When do I need to register for GST/HST in Canada?
- When your worldwide taxable revenues, plus those of any associated persons, exceed $30,000 in a single calendar quarter or over four consecutive calendar quarters.
- Do I have to register for GST/HST as a freelancer?
- Only if your gross taxable revenues exceed the $30,000 small-supplier threshold. Below that, registration is voluntary.
- Are taxi or Uber drivers required to register?
- Yes, from the first dollar of fares. The small-supplier rule does not apply to taxi or ride-share operators.
- What is the deadline to register after crossing $30,000?
- If you cross in a single quarter, you must register before that supply. If you cross over four quarters, your small-supplier status ends at the end of the second month after the quarter in which you crossed.
- Should I register before reaching $30,000?
- Voluntary registration lets you claim input tax credits on business expenses. The trade-off is charging GST/HST on every sale. It typically helps if your inputs are large or your customers are GST/HST registrants.
- What rate do I charge?
- It depends on the customer's province under the place-of-supply rules. Rates range from 5 percent (GST only) to 15 percent (HST in Atlantic provinces).
- What happens if I register late?
- CRA can backdate registration, assess GST/HST as if it were included in your sales, and apply interest and a 10 percent late-filing penalty.