Closing a GST/HST Account
How to close a GST/HST account, when you can, the tax on assets you still own, and what to do after.
The short version
- You can close (cancel) your GST/HST account through My Business Account or by mailing form RC145. You must file a final return and pay what you owe.
- You can't close it just because sales dropped: you must be a small supplier (under $30,000 over four consecutive quarters) and, if you registered voluntarily, have been registered for at least a year. Taxi and rideshare drivers must stay registered while they operate.
- When you close, you're treated as selling your remaining inventory and capital property at fair market value. You may owe GST/HST on it, which can claw back input tax credits you claimed.
- Closing the GST/HST account doesn't close your business number or your other CRA accounts (payroll, income tax); they're closed separately.
- Keep records for six years after the final return.
Closing a GST/HST Account
Businesses end, change shape or shrink, and the GST/HST account has to follow. Closing it is mostly paperwork, with one trap: the tax on what you still own when you close. A contractor who claimed the HST back on a $70,000 truck and then closes the account may owe much of it back. Here's how to close cleanly.
Can You Close It?
| Situation | Can you cancel? |
|---|---|
| You stopped carrying on the business | Yes |
| Sales dropped below $30,000 over the last four quarters | Yes, if you've been registered at least a year (for voluntary registrants) |
| Still over $30,000 | No; you must stay registered |
| Taxi or rideshare driver still driving | No |
| Incorporating your sole proprietorship | The proprietorship's account is closed; the corporation registers its own (a rollover election may avoid tax on assets transferred) |
| Selling the business | Close after the sale; an election (form GST44) can let the sale of the business assets happen without tax, if conditions are met |
CRA can also cancel a registration if it decides you aren't carrying on a commercial activity. Closing a whole corporation involves more than the GST/HST account; see closing a corporation.
Closing your GST/HST account?
List your remaining inventory and equipment and the ITCs you claimed on them. The SmartFile calculates the tax on the deemed sale, prepares the final return figures, and tells you whether an election can avoid the tax.
The Deemed Sale When You Close
- Inventory and supplies on hand: treated as sold at fair market value; GST/HST is payable on the final return.
- Capital property (equipment, vehicles, computers) on which you claimed ITCs: treated as sold, with tax generally equal to its "basic tax content" (the GST/HST originally paid, reduced for decline in value). In practice, part of the ITCs come back.
- Property you never claimed ITCs on (bought before registering, or from private sellers): usually no tax.
| Example: Ontario contractor closing the account | Amount |
|---|---|
| Truck bought 2 years ago for $60,000 + $7,800 HST (ITC claimed in full) | |
| Fair market value now: $42,000 | |
| Basic tax content: about $7,800 x $42,000 / $60,000 | about $5,460 owed on the final return |
That's why it's often worth selling equipment before closing (charging the buyer GST/HST) or keeping the account open if you're about to restart.
How to Close
- Choose the effective date of cancellation.
- Close the RT account in My Business Account (or through a representative), or mail form RC145 within six months of signing it.
- File the final return, including the deemed sale amounts. CRA treats it as two periods: one ending the day before closure, and one from the closure date if tax is owing for it.
- Pay any balance, and claim any final refund.
- Close other accounts (payroll, import/export) separately when they're finished.
After Closing
- Stop charging GST/HST and remove your number from invoices and your website.
- Keep records for six years after the final return; see recordkeeping requirements.
- If you start up again and pass $30,000, register again; see how to register.
The income tax side of winding up (selling equipment, recapture, final business period) is on capital cost allowance explained and small business taxes. Back to the GST/HST guide.
Closing a GST/HST Account Questions
How do I close my GST/HST account?
Through My Business Account or a representative, or by mailing form RC145. You must file a final return and pay any balance.
Can I cancel my GST/HST registration if my sales are under $30,000?
Yes, if you are a small supplier and, for voluntary registrants, have been registered for at least a year. Taxi and rideshare drivers must stay registered while operating.
Do I owe GST/HST on my equipment when I close my account?
Possibly. You are treated as selling inventory and capital property at fair market value when you cancel, which can require you to repay part of the input tax credits you claimed.
Does closing my GST/HST account close my business number?
No. The business number and other program accounts, such as payroll, are closed separately.
How long do I keep GST/HST records after closing?
Six years from the end of the last reporting period they relate to.
Sources: CRA, Close your GST/HST account; GST/HST Memorandum 2-7, Cancellation of Registration. Checked October 2026. The basic tax content example is simplified; the actual calculation depends on how the value is measured. Elections on selling or incorporating a business have conditions not listed here.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.