When to register for and start charging the GST/HST
If you're not sure if you have to, find out if you need to charge GST/HST.
Most businesses
| If | Then |
|---|---|
|
You do not exceed the $30,000 threshold amountFootnote 1 in four consecutive calendar quarters.Footnote 2 |
As a small supplier, you do not have to register. You may choose to do so voluntarily if you provide taxable supplies in Canada. At the end of every quarter, you have to make the same calculation to see if you are still a small supplier. |
| You exceed the $30,000 threshold amountFootnote 1 in a single calendar quarter.Footnote 2 |
You start charging the GST/HST on the supply that made you exceed $30,000. You must register within 29 days from the day you passed $30,000 in revenue and ceased to be a small supplier. |
|
You exceed the $30,000 threshold amountFootnote 1 within the previous four consecutive calendar quarters (but not in a single calendar quarter).Footnote 2 |
You start charging the GST/HST at the beginning of the month after you passed $30,000 in revenue and ceased to be a small supplier. You must register within 29 days after you make a sale other than as a small supplier. |
Examples (show/hide)
Example 1 - Did not exceed the $30,000 threshold amount in four consecutive calendar quarters
You started your business in January 2015 and made the following sales throughout that year:
| Quarter | Amount |
|---|---|
| First quarter (January to March) | $2,000 |
| Second quarter (April to June) | $10,000 |
| Third quarter (July to September) | $12,000 |
| Fourth quarter (October to December) | $5,000 |
| Total | $29,000 |
Because you did not exceed the $30,000 threshold amount in four consecutive calendar quarters, you are considered a small supplier throughout 2015, the first quarter of 2016, and the month of April 2016. At the end of every quarter, you have to make the same calculation to determine if you are still a small supplier.
Example 2 - Exceed the $30,000 threshold amount within the previous four consecutive calendar quarters
This example shows what happens when you exceed the $30,000 threshold amount within the previous four consecutive calendar quarters:
| Quarter | Amount |
|---|---|
| First quarter (April 2014 to June 2014) | $2,000 |
| Second quarter (July 2014 to September 2014) | $10,000 |
| Third quarter (October 2014 to December 2014) | $12,000 |
| Fourth quarter (January 2015 to March 2015) | $8,000 |
| Total | $32,000 |
- You cease to be a small supplier at the end of the following month (end of April 2015) as you exceeded the $30,000 threshold amount within the last four consecutive calendar quarters.
- You have to start charging the GST/HST in May 2015.
- You must register within 29 days after you make a sale other than as a small supplier.
In this particular case, if you make a sale on May 5, 2015, since you would no longer be a small supplier at that time, you have to register before June 4, 2015.
Example 3 - Exceed the $30,000 threshold amount in one particular quarter
This example explains what happens if you exceed the $30,000 threshold amount in one particular calendar quarter:
| Quarter | Amount |
|---|---|
| First quarter (January to March) | $2,000 |
| Second quarter (April to June) | $10,000 |
| Third quarter (July to September) | $38,000 |
- You cease to be a small supplier as you exceeded the threshold amount in one particular calendar quarter.
- You have to charge the tax on the sale that made you exceed the threshold amount even if you are not yet registered.
- You must register within 29 days from the day you cease to be a small supplier.
In this particular case, if you made the sale that exceeds the small supplier threshold amount on September 23, you have until October 22 to register.
Example 4 - Exceed the $30,000 threshold amount in two consecutive calendar quarters
This example explains what happens when you exceed the $30,000 threshold amount in two consecutive calendar quarters:
| Quarter | Amount |
|---|---|
| First quarter (January 2015 to March 2015) | $25,000 |
| Second quarter (April 2015 to June 2015) | $25,000 |
| Total | $50,000 |
- You cease to be a small supplier at the end of the following month (end of July 2015) as you exceeded the $30,000 threshold amount in two consecutive calendar quarters.
- You have to start charging GST/HST in August 2015.
- You must register within 29 days after you make a sale other than as a small supplier.
In this particular case, if you make a sale on August 20, 2015, since you would no longer be a small supplier at that time, you have until September 18, 2015 to register.
Footnotes
Charities and public institutions
Charities and public institutions
Use the following two tables to see if you are a small supplier or not, under either of the following:
You do not have to be registered for the GST/HST, to be eligible for a public service bodies rebate.
When determining its status under these tests, a charity has to consider its activities as a whole.
$250,000 gross revenue test
| If | Then | What you need to do |
|---|---|---|
|
You are in your first fiscal year. |
You are a small supplier. |
You do not have to register. You may choose to do so voluntarily if you provide taxable supplies in Canada. |
|
You are in your second fiscal year and your gross revenue from the first fiscal year is less than $250,000Footnote 3 . |
You are a small supplier. |
You do not have to register. You may choose to do so voluntarily if you provide taxable supplies in Canada. |
| You are in your third fiscal year and your gross revenues for either or both of the previous two fiscal years is less than $250,000 Footnote 3 . | You are a small supplier. |
You do not have to register. You may choose to do so voluntarily if you provide taxable supplies in Canada. |
| You are in your second fiscal year and your gross revenue from the first fiscal year is $250,000 or moreFootnote 3 . |
Under this test, you are not a small supplier. Use the $50,000 taxable supplies test to see if you are a small supplier under that test. |
If you are not a small supplier under either test, you have to register for the GST/HST. |
| You are in your third fiscal year and your gross revenues for both of the previous two fiscal years is $250,000 or more Footnote 3 . |
Under this test, you are not a small supplier. Use the $50,000 taxable supplies test to see if you are a small supplier under that test. |
If you are not a small supplier under either test, you have to register for the GST/HST. |
Footnotes
$50,000 taxable supplies test
| If | Then | What you need to do |
|---|---|---|
|
You do not exceed the $50,000 threshold amountFootnote 4 in four consecutive calendar quarters.Footnote 5 |
You are a small supplier. |
You do not have to register. You may choose to do so voluntarily if you provide taxable supplies in Canada. At the end of every quarter, you have to make the same calculation to see if you are still a small supplier. |
|
You exceed the $50,000 threshold amountFootnote 4 in a single calendar quarter.Footnote 5 |
Under this test, you are not a small supplier. You cease to be a small supplier on the supply that made you exceed $50,000. Use the $250,000 gross revenue test to see if you are a small supplier under that test. |
You start charging the GST/HST on the supply that made you exceed $50,000. You must register within 29 days from the day you cease to be a small supplier. |
|
You exceed the $50,000 threshold amountFootnote 4 within the previous four consecutive calendar quarters (but not in a single calendar quarter).Footnote 5 |
Under this test, you are no longer a small supplier at the end of the month following the quarter in which you exceed $50,000. Use the $250,000 gross revenue test to see if you are a small supplier under that test. |
You start charging the GST/HST at the beginning of the month after you cease to be a small supplier. You must register within 29 days after you make a sale other than as a small supplier. |
Examples (show/hide)
Example 1 - Did not exceed the $50,000 threshold amount in four consecutive calendar quarters
Your charity started making taxable supplies of goods and services in January 2015 and made the following sales throughout that year:
| Quarter | Amount |
|---|---|
| First quarter (January to March) | $7,000 |
| Second quarter (April to June) | $15,000 |
| Third quarter (July to September) | $17,000 |
| Fourth quarter (October to December) | $10,000 |
| Total | $49,000 |
Because you did not exceed the $50,000 threshold amount in four consecutive calendar quarters, you are considered a small supplier throughout 2015, the first quarter of 2016, and the month of April 2016. At the end of every quarter, you have to make the same calculation to determine if you are still a small supplier.
Example 2 - Exceed the $50,000 threshold amount within the previous four consecutive calendar quarters
This example shows what happens when you exceed the $50,000 threshold amount within the previous four consecutive calendar quarters:
| Quarter | Amount |
|---|---|
| First quarter (April 2014 to June 2014) | $7,000 |
| Second quarter (July 2014 to September 2014) | $15,000 |
| Third quarter (October 2014 to December 2014) | $17,000 |
| Fourth quarter (January 2015 to March 2015) | $13,000 |
| Total | $52,000 |
- Under this test, you cease to be a small supplier at the end of the following month (end of April 2015) as you exceeded the $50,000 threshold amount in the last four consecutive calendar quarters. Use the $250,000 gross revenue test to see if you are a small supplier under that test.
- If you are no longer a small supplier under either test, you have to start charging the GST/HST in May 2015.
- You must register within 29 days after you make a sale other than as a small supplier.
If you are no longer a small supplier under either test, and you make a sale on May 5, 2015, since you would no longer be a small supplier at that time, you have to register before June 4, 2015.
Example 3 - Exceed the $50,000 threshold amount in one particular quarter
This example explains what happens if you exceed the $50,000 threshold amount in one particular calendar quarter:
| Quarter | Amount |
|---|---|
| First quarter (January to March) | $7,000 |
| Second quarter (April to June) | $15,000 |
| Third quarter (July to September) | $58,000 |
- Under this test, you cease to be a small supplier as you exceeded the threshold amount in one particular calendar quarter. Use the $250,000 gross revenue test to see if you are a small supplier under that test.
- If you are no longer a small supplier under either test, you have to charge the tax on the sale that made you exceed the threshold amount even if you are not yet registered.
- You must register within 29 days from the day you cease to be a small supplier.
If you are no longer a small supplier under either test, and you make the sale that exceeds the small supplier threshold amount on September 23, you have until October 22 to register.
Example 4 - Exceed the $50,000 threshold amount in two consecutive calendar quarters
This example explains what happens when you exceed the $50,000 threshold amount in two consecutive calendar quarters:
| Quarter | Amount |
|---|---|
| First quarter (January 2015 to March 2015) | $35,000 |
| Second quarter (April 2015 to June 2015) | $35,000 |
| Total | $70,000 |
- Under this test, you cease to be a small supplier at the end of the following month (end of July 2015) as you exceeded the $50,000 threshold amount in two consecutive calendar quarters. Use the $250,000 gross revenue test to see if you are a small supplier under that test.
- If you are no longer a small supplier under either test, you have to start charging the GST/HST in August 2015.
- You must register within 29 days after you make a sale other than as a small supplier.
If you are no longer a small supplier under either test, and you make a sale on August 20, 2015, since you would no longer be a small supplier at that time, you have until September 18, 2015 to register.
Footnotes
Public service bodies
Public service bodies that are not charities or public institutions
Use the following table to see if you are a small supplier or not to determine if you are required to register for a GST/HST account.
| If | Then | What you need to do |
|---|---|---|
|
You do not exceed the $50,000 threshold amountFootnote 6 in four consecutive calendar quarters.Footnote 7 |
You are a small supplier. |
You do not have to register. You may choose to do so voluntarily if you provide taxable supplies in Canada. At the end of every quarter, you have to make the same calculation to see if you are still a small supplier. |
|
You exceed the $50,000 threshold amountFootnote 6 in a single calendar quarter.Footnote 7 |
You are not a small supplier. You cease to be a small supplier on the supply that made you exceed $50,000. |
You start charging the GST/HST on the supply that made you exceed $50,000. You must register within 29 days from the day you cease to be a small supplier. |
|
You exceed the $50,000 threshold amountFootnote 6 within the previous four consecutive calendar quarters (but not in a single calendar quarter).Footnote 7 |
You are no longer a small supplier at the end of the month following the quarter in which you exceed $50,000. |
You start charging the GST/HST at the beginning of the month after you cease to be a small supplier. You must register within 29 days after you make a sale other than as a small supplier. |
Examples (show/hide)
Example 1 - Did not exceed the $50,000 threshold amount in four consecutive calendar quarters
Your public service body started making taxable supplies of goods and services in January 2015 and made the following sales throughout that year:
| Quarter | Amount |
|---|---|
| First quarter (January to March) | $7,000 |
| Second quarter (April to June) | $15,000 |
| Third quarter (July to September) | $17,000 |
| Fourth quarter (October to December) | $10,000 |
| Total | $49,000 |
Because you did not exceed the $50,000 threshold amount in four consecutive calendar quarters, you are considered a small supplier throughout 2015, the first quarter of 2016, and the month of April 2016. At the end of every quarter, you have to make the same calculation to determine if you are still a small supplier.
Example 2 - Exceed the $50,000 threshold amount within the previous four consecutive calendar quarters
This example shows what happens when you exceed the $50,000 threshold amount within the previous four consecutive calendar quarters:
| Quarter | Amount |
|---|---|
| First quarter (April 2014 to June 2014) | $7,000 |
| Second quarter (July 2014 to September 2014) | $15,000 |
| Third quarter (October 2014 to December 2014) | $17,000 |
| Fourth quarter (January 2015 to March 2015) | $13,000 |
| Total | $52,000 |
- You cease to be a small supplier at the end of the following month (end of April 2015) as you exceeded the $50,000 threshold amount in the last four consecutive calendar quarters.
- You have to start charging the GST/HST in May 2015.
- You must register within 29 days after you make a sale other than as a small supplier.
In this particular case, if you make a sale on May 5, 2015, since you would no longer be a small supplier at that time, you have to register before June 4, 2015.
Example 3 - Exceed the $50,000 threshold amount in one particular quarter
This example explains what happens if you exceed the $50,000 threshold amount one particular calendar quarter:
| Quarter | Amount |
|---|---|
| First quarter (January to March) | $7,000 |
| Second quarter (April to June) | $15,000 |
| Third quarter (July to September) | $58,000 |
- You cease to be a small supplier as you exceeded the threshold amount in one particular calendar quarter.
- You have to charge the tax on the sale that made you exceed the threshold amount even if you are not yet registered.
- You must register within 29 days from the day you cease to be a small supplier.
In this particular case, if you make the sale that exceeds the small supplier threshold amount on September 23, you have until October 22 to register.
Example 4 - Exceed the $50,000 threshold amount in two consecutive calendar quarters
This example explains what happens when you exceed the $50,000 threshold amount in two consecutive calendar quarters:
| Quarter | Amount |
|---|---|
| First quarter (January 2015 to March 2015) | $35,000 |
| Second quarter (April 2015 to June 2015) | $35,000 |
| Total | $70,000 |
- You cease to be a small supplier at the end of the following month (end of July 2015) as you exceeded the $50,000 threshold amount in two consecutive calendar quarters.
- You have to start charging the GST/HST in August 2015.
- You must register within 29 days after you make a sale other than as a small supplier.
In this particular case, if you make a sale on August 20, 2015, since you would no longer be a small supplier at that time, you have until September 18, 2015 to register.
Footnotes
Non-residents
Non-residents
You may be carrying on business in Canada even if you do not have a permanent establishment in Canada.
Non-Residents wanting to register for GST/HST must complete form RC1, Request for a Business Number, and fax or mail it to their designated non-resident tax services office.
To obtain the mailing address, fax, or telephone number of the appropriate designated non-resident tax services office for your location, go to Contact us and select the topic Non-resident GST/HST enquiries.
| If you are a non-resident and | Then | What you need to do |
|---|---|---|
|
You provide taxable supplies (including zero-rated supplies) in Canada in the course of carrying on business activity in Canada. |
You need to register if you are not a small supplier. |
For most business, see Small supplier limit calculation. For charities and public institutions, see Small supplier limit calculation. For other public service bodies, see Small supplier limit calculation. |
|
You solicit sales for books, newspapers, magazines, periodicals, or similar printed publications in Canada or you offer such goods for sale in Canada, either through an employee or agent, or by means of advertising directed at the Canadian market, and send the publications by mail or courier to the recipient at an address in Canada. |
You need to register if you are not a small supplier. |
For most business, see Small supplier limit calculation. For charities and public institutions, see Small supplier limit calculation. For other public service bodies, see Small supplier limit calculation. |
|
You sponsor (host) a convention in Canada and more than 25% of the delegates are residents of Canada. |
You have to register (whether or not you are a small supplier). |
|
|
You make taxable supplies of admissions in Canada for a place of amusement, a seminar, an activity, or an event held in Canada. |
You have to register (whether or not you are a small supplier). |
|
|
You do not carry on business in Canada (except if you make taxable supplies of admissions in Canada for a place of amusement, a seminar, an activity, or an event held in Canada) |
You do not need to register. |
See if any other situation in this chart applies to you. |
|
You sell taxable real property located in Canada other than in the usual course of a business |
You do not need to register. |
See if any other situation in this chart applies to you. |
If your business is registered for the GST, it is also registered for the HST.
Non-resident security
Non-resident security (show/hide)
Generally, if you do not have a permanent establishment in Canada, or if you make supplies in Canada only through another person's fixed place of business, and you apply to be registered for the GST/HST, you have to provide us with security.
Exception
If you estimate that you will sell or provide taxable property and services in Canada of not more than $100,000 annually and your net tax will be between $3,000 remittable and $3,000 refundable annually, security is not required.
The initial amount of the security is 50% of your estimated net tax, whether positive or negative, during the 12-month period after you register. For subsequent years, the amount of security is equal to 50% of your actual net tax for the previous 12-month period whether this amount is positive or negative. The maximum security that we may require is $1 million, and the minimum is $5,000.
Your security may be in the form of cash, certified cheque, money order, or a qualifying bond. The use of cash or cash equivalents (certified cheque or money order, etc.) may result in the cash being used to pay other outstanding debts to the CRA at the time the security is released. We do not accept non-transferable bonds such as Canada Savings Bonds. For current security requirements, contact your tax services office. To obtain the mailing address and telephone number of the appropriate tax services office for your location, go to Contact us and select the topic Non-resident GST/HST enquiries.
Taxi or limousine
Taxi or limousine operator
If you are a self-employed taxi or limousine driver in the taxi business, you have to register for the GST/HST. You are usually self-employed if you are in one of the following situations:
- You own your taxicab/limousine.
- You lease a taxicab/limousine from an owner for a flat fee, either on a daily, weekly, or monthly basis.
- You lease the taxicab/limousine from an owner for a percentage of fares.
If you are not sure whether you are self-employed or an employee, you can request a ruling to have your status determined by using Form CPT1, Request for a Ruling as to the Status of a Worker under the Canada Pension Plan and/or the Employment Insurance Act.
For more information, see taxi or limousine operator.
Voluntary GST/HST registration if you are a small supplier
If you decide to register voluntarily, you have to:
- charge, collect, and remit the GST/HST on your taxable supplies of property and services
- file GST/HST returns on a regular basis
- stay registered for at least one year before you can cancel your registration (unless you stop your commercial activities)
Once registered, you may be eligible to claim ITCs to recover the GST/HST paid or payable on your purchases and operating expenses. For more information, see Input tax credits.
If you want to register, see How to register for a GST/HST account.
If you choose not to register, you do not charge the GST/HST (other than on certain taxable supplies of real property) and you cannot claim ITCs.
Voluntary GST/HST registration for non-residents
You can choose to register voluntarily in the following cases:
- you are engaged in a commercial activity in Canada
- you are a non-resident person who, in the ordinary course of carrying on business outside Canada, regularly solicits orders for goods (except prescribed goods) to be exported or delivered to Canada
- you are a non-resident person who, in the ordinary course of carrying on business outside Canada, enters into an agreement to supply services to be performed in Canada
- you are a non-resident person who, in the ordinary course of carrying on business outside Canada, enters into an agreement to supply intangible personal property such as intellectual property:
- to be used in Canada
- that relates to real property situated in Canada
- that relates to goods that are ordinarily situated in Canada
- that relates to services to be performed in Canada
Generally, if you do not have a permanent establishment in Canada, or if you make supplies in Canada only through another person's fixed place of business, and you apply to be registered for the GST/HST, you have to provide us with security.