Do I Need a GST/HST Number?
The four-question test for needing a GST/HST number, what counts toward $30,000, and when to register voluntarily.
The short version
- You need a GST/HST number once your taxable sales pass $30,000 in a single calendar quarter or over four consecutive calendar quarters. Below that, you're a "small supplier" and registration is optional.
- Some businesses must register from their first sale, whatever their sales: taxi and rideshare drivers, and non-residents who sell admissions to events in Canada.
- Only taxable sales count (including zero-rated ones like exports and basic groceries). Exempt sales (long-term residential rent, most health and child care services, financial services) don't, and those businesses can't register for them.
- Registering voluntarily lets you claim input tax credits on your costs. It's often worth it if your customers are businesses; less so if they're consumers who can't claim the tax back.
- Charities and public institutions use a $50,000 threshold.
Do I Need a GST/HST Number?
Most new businesses ask this question in one of two moods: hoping the answer is no, or finding out the answer was yes six months ago. The test itself is short. The trouble is in the details: which sales count, what "four consecutive quarters" means, and the handful of businesses that have to register from day one. Here's the decision, step by step.
The Decision in Four Questions
- Do you drive a taxi or for a rideshare app? Yes: register before your first fare. See rideshare taxes.
- Are your sales taxable (including zero-rated)? If everything you sell is exempt (long-term residential rent, most medical and dental services, child care, music lessons, financial services), you don't register and don't charge, and you can't claim input tax credits.
- Have your taxable sales, from all your businesses and associated businesses, passed $30,000? In one calendar quarter, or over the last four quarters combined. Yes: you must register. See the $30,000 small supplier rule for exactly how the two tests work.
- Below $30,000? Optional. Read the next section.
Do you need to register, and from when?
Enter your sales by quarter and what you sell. The SmartFile runs both small supplier tests, tells you whether and when you had to register, and estimates what you owe if you are late.
Should You Register Voluntarily?
| Points toward registering | Points toward waiting |
|---|---|
| Your customers are businesses that claim the GST/HST back (it costs them nothing) | Your customers are consumers (the tax is a real price increase for them) |
| You have significant start-up costs with GST/HST to recover | Your costs carry little GST/HST |
| You expect to pass $30,000 soon anyway | You're well under $30,000 and expect to stay there |
| Larger clients prefer suppliers with a GST/HST number | You don't want the filing obligation yet |
| You sell to non-residents (zero-rated) and want the input tax credits |
Once registered, you charge GST/HST on all taxable sales and file returns, usually annually for small businesses. You generally must stay registered for at least a year before cancelling. The quick method can make the paperwork simpler; see the quick method example on the rideshare page.
What Counts Toward the $30,000
| Counts | Doesn't count |
|---|---|
| Taxable sales of goods and services in Canada | Exempt sales (residential rent, most health, education and financial services) |
| Zero-rated sales (exports, basic groceries, prescription drugs) | Sales of capital property (like selling your equipment) |
| Sales by associated businesses (corporations and partnerships you control) | Goodwill on selling a business |
| Sales outside Canada through a permanent establishment in Canada (in many cases) | Financial services |
The threshold is about sales, not profit, and includes all your businesses together. Freelancers with foreign clients are often surprised that zero-rated export sales count; see freelancer taxes.
If You Should Have Registered Already
You owe the GST/HST you should have charged from the date you stopped being a small supplier, whether or not you collected it, plus interest and possibly penalties. You can still claim input tax credits on your costs for that period. Register now, with the right effective date, and work out the back tax; see how to register for GST/HST. For older or larger amounts, a voluntary disclosure may reduce penalties and interest.
Check your numbers with the GST/HST registration calculator. Once registered, see how to charge GST/HST. Everything else is on the GST/HST guide, and the self-employed side on self-employed taxes in Canada.
GST/HST Number Questions
Do I need a GST/HST number if I make less than $30,000?
Usually not. If your taxable sales are $30,000 or less in a calendar quarter and over the last four quarters, you are a small supplier and registration is optional. Taxi and rideshare drivers are an exception and must register.
Does the $30,000 threshold apply per year?
Not exactly. It applies to any single calendar quarter and to any four consecutive calendar quarters, so it is tested every quarter.
Should I register for GST/HST voluntarily?
It often makes sense if your customers are businesses that can claim the tax back, or if you have significant costs with GST/HST to recover. It is less attractive if your customers are consumers.
Do exempt sales count toward the $30,000?
No. Only taxable sales, including zero-rated sales such as exports, count toward the threshold.
What happens if I should have registered but did not?
You owe the GST/HST you should have charged from the date you stopped being a small supplier, plus interest and possibly penalties, but you can claim input tax credits for that period.
Sources: CRA, When to register for and start charging the GST/HST; Register voluntarily for a GST/HST account; RC4022 General Information for GST/HST Registrants. Checked October 2026. The list of exempt supplies and what counts toward the threshold is summarized; some services have specific rules.
Last reviewed October 4, 2026 against CRA and Government of Canada sources. How we check our facts.