When does a business have to register for GST/HST?

Revenue included in the threshold

Worldwide revenue from taxable supplies, including zero-rated supplies, is counted before expenses.

Revenue of associated persons is generally included.

Exempt supplies, sales of capital property, financial services and goodwill sold with a business are excluded.

Exceeding $30,000 in one quarter

The business stops being a small supplier on the sale that takes it over the threshold.

That sale is generally taxable and registration must be requested within 29 days after the day small-supplier status ends.

Waiting until year-end may leave the business paying uncollected tax from its own funds.

Exceeding $30,000 over four consecutive quarters

If the limit was not exceeded in a single quarter but the total for four consecutive calendar quarters exceeds $30,000, small-supplier status ends at the end of the following month.

GST/HST starts on the first supply after that date, and registration must be requested within 29 days.

Exceptions and voluntary registration

Taxi operators and commercial ride-sharing drivers generally must register from the day they begin, even below $30,000.

A small supplier may register voluntarily. This can allow eligible input tax credits but also creates invoicing, recordkeeping, filing and remittance duties.

A voluntary registrant generally must remain registered for at least one year before cancellation.

Before making the decision

Identify whether supplies are taxable, zero-rated or exempt.

Recalculate the threshold each quarter and include associates where required.

Consider whether customers recover the tax and whether input tax credits justify voluntary registration.

Confirm the effective date before issuing invoices with GST/HST.