GST/HST Guide
Understand GST/HST registration, returns, input tax credits, rebates, deadlines and common problems.
The short version
- GST is the 5% federal sales tax. HST combines it with the provincial part in Ontario (13%), Nova Scotia (14%), and New Brunswick, Newfoundland and Labrador and PEI (15%).
- You must register once taxable sales pass $30,000 in a calendar quarter or over four quarters in a row. Taxi and ride-share drivers register from day one.
- Registered businesses charge GST/HST, claim back the GST/HST they pay (input tax credits), and send CRA the difference.
- Most small businesses file once a year. Annual filers who owe $3,000 or more can be asked for quarterly instalments.
- Disputes over a GST/HST assessment have a strict 90-day objection deadline.
GST/HST in Canada, Explained in Plain English
GST/HST isn't your money. You collect it from customers on behalf of CRA, subtract what you paid on your own business purchases, and hand over the rest. The businesses that get into trouble aren't usually cheating. They spent the HST in the chequing account because it looked like revenue. It isn't. It never was.
Registration: When You Have to, and When You Should
You stay a “small supplier” until your worldwide taxable sales, including those of associated businesses, pass $30,000 in a single calendar quarter or over four consecutive quarters. Then you have 29 days to register. The details, with examples, are in our guide to the $30,000 GST/HST small supplier rule, and the GST/HST registration calculator applies both tests to your own sales.
Registering early is often smart (especially for self-employed people and small businesses) when your customers are businesses (they claim the tax back) or when you have big start-up costs (you claim the tax back). See do I need a GST/HST number? and how to register.
What Rate to Charge
| Where the customer is | Rate |
|---|---|
| Ontario | 13% HST |
| Nova Scotia | 14% HST |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | 15% HST |
| Alberta, British Columbia, Manitoba, Quebec, Saskatchewan, and the territories | 5% GST |
Which rate applies to an out-of-province customer, and what your invoices must show, is on how to charge GST/HST.
The rate generally follows the customer, not you: where a service is used, or where goods are delivered. BC, Manitoba and Saskatchewan also charge a separate provincial sales tax, and Quebec has QST, each with its own registration. The full table, with rate history, is on GST/HST rates by province. To add or remove GST/HST from a price, use the GST/HST calculator.
Taxable, Zero-Rated and Exempt
Taxable sales carry GST/HST. Zero-rated sales (basic groceries, most exports, prescription drugs) are taxable at 0%: you charge nothing but can still claim input tax credits. Exempt sales (most long-term residential rent, many health, child care and financial services, used housing) carry no tax and you can't claim input tax credits on the costs of making them. That last difference is worth real money, so get it right.
Input Tax Credits: Getting the Tax Back
As a registrant you can claim back the GST/HST you paid on purchases used in your commercial activities: supplies, rent, equipment, vehicles (in part), professional fees. You need proper invoices showing the supplier's GST/HST number. Most small businesses have up to four years to claim a missed input tax credit. How they work is on input tax credits explained, and the item-by-item list on what can you claim as an ITC?
Get your GST/HST set up right the first time
The GST/HST SmartFile runs both $30,000 tests on your sales, compares the quick method with the regular method, and fills in form GST74 if the quick method wins.
Filing and Paying
- Annual filing is available if your annual taxable sales are $1.5 million or less; the return is due three months after your fiscal year-end (June 15 for individuals with a December 31 year-end, with payment due April 30).
- Quarterly filing applies from $1.5 million to $6 million, and monthly over $6 million. Returns and payment are due one month after each period. See filing periods and how to file a GST/HST return.
- File a return for every period, even when you owe nothing. A missing return, even a nil one, can bring a formal demand from CRA and holds up any refund you are due.
- The quick method lets many small businesses with sales up to $400,000 remit a lower flat percentage instead of tracking every input tax credit. For a service business in Ontario it's 8.8% of tax-included sales; all the rates are on the quick method.
Housing: New Homes, Renovations and Rentals
New homes are taxable, used homes generally aren't (see GST/HST on new homes), and there are rebates for new houses, owner-built homes, substantial renovations and new rental buildings. Ontario's versions are complicated enough that we gave them their own site: OntarioHSTRebates.ca. For the federal forms, see our list of Canadian tax forms.
Not the Same Thing: the Canada Groceries and Essentials Benefit
The quarterly benefit for individuals with low and modest incomes used to be called the GST/HST credit. Since July 2026 it is the Canada Groceries and Essentials Benefit, with the same eligibility rules and a 25% increase for 2026 to 2031. It has nothing to do with running a business. CRA calculates it from your personal return; see Canadian tax credits.
Special Situations
A few situations have their own rules: deposits and forfeited deposits, customers who never pay and used goods and trade-ins. Worked examples of the whole calculation are on net tax calculation. Business vehicles have their own ITC limits (GST/HST on vehicle purchases), and closing down has its own tax (closing a GST/HST account).
By type of business: contractors, consultants and online businesses.
Five GST/HST Mistakes That Cost Real Money
- Registering late. CRA can assess the tax you should have charged, even though you never collected it.
- Spending the HST. Keep it in a separate account until the return is filed.
- Claiming input tax credits without proper invoices or on personal purchases.
- Charging your own province's rate to an out-of-province customer.
- Missing the 90-day objection deadline on a GST/HST assessment. Check the date with the tax document analyzer.
GST/HST Questions
When do I have to register for GST/HST in Canada?
When your taxable sales, including associated businesses, go over $30,000 in a single calendar quarter or over four consecutive calendar quarters. You then have 29 days to register. Taxi and ride-share drivers must register from their first fare.
What is the HST rate in Ontario?
13%. Nova Scotia is 14%; New Brunswick, Newfoundland and Labrador and PEI are 15%; the other provinces and the territories charge 5% GST.
How often do small businesses file GST/HST returns?
Annual filing is available up to $1.5 million in annual taxable sales. Quarterly filing applies from $1.5 million to $6 million, and monthly above $6 million. You can choose to file more often.
How long do I have to claim an input tax credit?
Most small businesses have up to four years after the end of the period in which the purchase was made. Some larger businesses have a shorter limit.
How long do I have to object to a GST/HST assessment?
90 days from the date of the notice. Unlike income tax, there is no one-year alternative.
Sources: CRA, When to register for and start charging the GST/HST; RC4022 General Information for GST/HST Registrants; RC4058 Quick Method; GST/HST rates. Checked October 2026.
Last reviewed October 5, 2026 against CRA and Government of Canada sources. How we check our facts.