Who is a small supplier?
For most businesses, the CRA generally treats a person as a GST/HST small supplier while worldwide taxable supplies do not exceed $30,000 under the applicable calendar-quarter tests. The calculation can include supplies made by associated persons and is based on taxable supplies, not profit.
Some activities have special rules. Taxi and commercial ride-sharing operators, non-residents, charities, public service bodies, and businesses making exempt supplies should not rely on a general summary.
How the threshold timing works
The CRA applies two different timing patterns. If taxable supplies exceed $30,000 in one calendar quarter, small-supplier status ends on the supply that caused the excess and tax can apply to that sale. If the total exceeds $30,000 over previous consecutive quarters but not in one quarter, status ends under the later end-of-month rule.
Use the CRA's registration table and examples to determine the correct date, then confirm uncertain cases directly with the CRA or a qualified professional.
Voluntary registration
An eligible small supplier may choose to register before registration becomes mandatory. Once registered, the business has to charge and collect the applicable tax on taxable supplies, file returns, remit net tax, and follow the cancellation rules. A registrant may be eligible to claim input tax credits for GST/HST on purchases and expenses used in commercial activities.
That can be useful for a business with meaningful taxable start-up purchases, but it also adds administration and can affect customer-facing prices. Eligibility, documentation, exempt activities, and mixed use matter. Read the CRA's voluntary-registration obligations and input-tax-credit rules before deciding.
Invoices and records after registration
A GST/HST registrant needs invoices and records that show the applicable tax clearly and contain the information customers need to support their own claims. The CRA requires more information at higher invoice amounts and says collected GST/HST must be held for remittance.
Handoff can show tax lines and registration information on an invoice, but the owner remains responsible for the correct registration date, rate, place-of-supply treatment, filing, and remittance.
GST/HST is not every provincial sales tax
HST harmonizes federal and provincial components in participating provinces. Other provinces may have separate PST, and Quebec has QST. This article does not cover every provincial system. Check the official tax authority for each province where the business makes sales or performs services.
Sources and official resources
- CRA: When to register and start charging GST/HST
- CRA: Voluntary GST/HST registration
- CRA: Input tax credits
- CRA: Charge and collect GST/HST
For the wider tax picture, return to Taxes for Canadian Sole Proprietors.