Tax Tip: Cross $30,000 in Sales and GST/HST Registration Becomes Mandatory
You don't register for GST/HST when you feel like it — the law decides. Once your worldwide taxable sales pass $30,000 in a single calendar quarter OR across four consecutive calendar quarters, you stop being a "small supplier" and must register. Miss it and you owe the tax you should have collected, out of your own pocket.
How to do it
- Track a rolling four quarters, not the calendar year. Add up taxable sales for the last four calendar quarters every month. At $25,000 through Q3 with an $8,000 October invoice, you've crossed — you don't get to wait until December 31.
- Know which test hit you. Single quarter over $30,000: you're a registrant immediately, on the very sale that crossed, with no grace period. Four-quarter crossing: status ends at the end of the month after that quarter.
- Register within 29 days of your effective date through CRA Business Registration Online (or add an RT account to your existing business number). Start charging GST/HST on taxable supplies from the effective date.
- Consider registering voluntarily early. Below $30,000 you may still register — then you can claim input tax credits (ITCs) on everything you buy for the business: laptops, software, subcontractors. If your startup costs are heavy, voluntary registration often pays.
Watch out
- It's worldwide taxable supplies. Export sales and zero-rated supplies count toward the $30,000. Exempt supplies (like most financial services) and capital property sales don't.
- The 29-day clock starts at the effective date, not the day you noticed. Under the single-quarter test, that's the date of the sale that crossed.
- Taxi and limousine drivers must register from day one. No $30,000 threshold for you.
- Associates' sales count too. Revenue of associated persons is combined with yours for the threshold test.
Frequently asked questions
Does the $30,000 include the GST/HST itself?
No — it's taxable sales before tax. But once registered, you charge GST/HST on top.
I only sell zero-rated goods (e.g., basic groceries, exports). Must I register?
Zero-rated supplies count toward the threshold, so yes, you can be forced to register — but you'd charge 0% GST/HST while still claiming full ITCs on your inputs. That's actually a good deal.
Should I use the Quick Method?
Small businesses (under $400,000 in taxable sales) can elect it: you charge the normal GST/HST but remit only a reduced percentage and skip most ITC tracking. Compare both methods with a year of real numbers before electing — the election lasts at least a year.
Sources
- CRA – When to register for and start charging the GST/HST: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/when-register-charge.html
- Ledg – The $30,000 threshold explained: https://ledg.ca/resource/articles/when-to-register-for-gst-hst-30000-threshold
Disclaimer — please read. This article is for general information and educational purposes only. It is not tax, accounting, legal, financial, or immigration advice, and reading it does not create a professional or client relationship between you and Llandora. Tax and immigration rules change frequently and differ by country, province/state, and personal circumstances; figures, thresholds, and examples in this article may be outdated, incomplete, or incorrect, and may not apply to your situation. Always verify current rules with the official sources (CRA, IRS, IRCC, USCIS) and consult a licensed professional before making any decision. Llandora makes no warranty of any kind — express or implied — about the accuracy, completeness, reliability, or timeliness of this content. To the fullest extent permitted by law, Llandora disclaims all liability for any loss, damage, cost, or expense arising from errors or omissions in this article or from any action taken or not taken in reliance on it, whether direct, indirect, incidental, or consequential. You rely on this article entirely at your own risk.
免责声明——请仔细阅读。本文仅供一般信息参考和学习之用,不构成税务、会计、法律、财务或移民建议;阅读本文不在您与 Llandora 之间建立任何专业或客户关系。税务和移民法规经常变化,且因国家、省/州和个人情况而异;本文中的数字、门槛和示例可能已经过时、不完整或有误,也可能不适用于您的具体情况。在做出任何决定之前,请务必向官方来源(CRA、IRS、IRCC、USCIS)核实最新规定,并咨询持牌专业人士。Llandora 对本内容的准确性、完整性、可靠性或时效性不作任何明示或暗示的保证。在法律允许的最大范围内,Llandora 对因本文中的错误或遗漏、或因依赖本文而采取或未采取任何行动所导致的任何损失、损害、费用或开支(包括直接、间接、附带或后果性损失)不承担任何责任。您对本文的依赖完全由您自行承担风险。