When do you have to register for HST? The $30,000 rule explained

Many new business owners are not sure when they need to start charging HST. Getting it wrong can mean owing HST you never collected from your customers, so it is worth understanding the rule.

The small supplier rule

You are a "small supplier" and do not have to register for GST/HST if your worldwide taxable sales (together with those of associated businesses) are $30,000 or less over any four consecutive calendar quarters.

Once you go over $30,000, you must register. The timing rules depend on whether you cross the line in a single quarter or over several quarters, so check as soon as you get close.

Who must register right away

Some businesses must register from their first sale no matter how small, including taxi and commercial ride-sharing drivers. Non-residents selling into Canada have their own rules.

Why some businesses register early

• Claim HST on startup costs: registered businesses can claim input tax credits for HST paid on equipment, rent and supplies.
• Look established: some business customers prefer suppliers with an HST number.
• No surprises: you are already set up when sales grow.

The trade-off: once registered, you must charge HST and file returns, even if sales are small.

Ontario rate

In Ontario, HST is 13% on most goods and services.

Need help?

We register businesses for HST, file returns and make sure every input tax credit is claimed. See our HST / GST service or book a free consultation.