Do I need to register for GST/HST if I earn under $30,000?

What is a small supplier?

The CRA calls you a "small supplier" if you are a sole proprietor and the total revenue from your worldwide taxable supplies — from all your businesses and those of your associates — is $30,000 or less in any single calendar quarter and in the last four consecutive calendar quarters. Small suppliers do not have to register for GST/HST, do not charge it, and cannot claim input tax credits.

This is a revenue test, not a profit test. The $30,000 is measured on gross revenue before you subtract a single expense.

What counts toward the $30,000 threshold?

Counting the right revenue is where freelancers most often go wrong:

• Count: all worldwide revenue from taxable supplies, including zero-rated supplies (such as most exports), from every business you run.
• Do not count: financial services, sales of capital property, and goodwill from the sale of a business.
• Before expenses: use gross revenue, not net income. A freelancer with $35,000 in revenue and $10,000 in expenses is over the threshold even though net income is only $25,000.
• Calendar quarters: January–March, April–June, July–September, October–December. Your fiscal year does not matter here.
• Worldwide: income earned from clients outside Canada counts toward the threshold if it is from taxable supplies.

Track your revenue by calendar quarter in a simple spreadsheet so you always know where you stand. Most freelancers who blow past the limit do so by accident, not by choice.

Should I register voluntarily if I'm under $30,000?

You are allowed to register for GST/HST even as a small supplier, and for some freelancers it makes sense:

• Input tax credits (ITCs). Once registered, you can recover the GST/HST you paid on business purchases — computers, software subscriptions, office supplies — by deducting it from the GST/HST you collect. If your business has significant taxable expenses, voluntary registration can put real money back in your pocket.
• Professional appearance. Some corporate clients prefer dealing with registered suppliers, and some assume it.
• Getting ahead of growth. If you expect to cross $30,000 soon, registering early means your invoicing and bookkeeping are already set up.

But registration comes with obligations. Once registered, you must charge, collect, and remit GST/HST on your taxable supplies starting on your date of registration, and every dollar of taxable sales from all your businesses is subject to the tax. If your clients are mostly individuals who cannot claim input tax credits themselves, adding HST to your invoices makes you 13% more expensive in Ontario — which can matter for price-sensitive work.

How much HST would I charge in Ontario?

Ontario is a participating province, so registered suppliers charge HST at 13% — the 5% federal portion plus the 8% Ontario portion — on taxable supplies made in Ontario. You charge the rate of the province where the supply is made, so work delivered to a client in Alberta would attract 5% GST instead.

Are there exceptions to the $30,000 rule?

Yes. Self-employed taxi drivers and commercial ride-share drivers must register for GST/HST regardless of how little they earn — the small-supplier exception does not apply to them. For most other freelancers, the $30,000 test is the whole story.