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GST for small business starts with one number: $30,000. The CRA says you’re a small supplier, and don’t have to register, while your taxable sales stay at or under $30,000 over four consecutive calendar quarters. Go past it and you register, charge the tax and send it in. Stay under and you can still register if you choose.
Do I have to register for GST?
Count your taxable sales, not your profit. Zero-rated sales (basic groceries, for instance) count toward the $30,000, and so do sales you make through every business you run. Watch four quarters in a row, because the limit isn’t tied to the calendar year.
The deadline depends on how you crossed it. If one single quarter takes you over, the CRA says to register by the day you pass the limit, and to charge the tax from that sale on. If you creep over across several quarters, registration is due by the first supply after the month that follows the quarter where you passed it. That first case is the one that trips up a contractor with a big job.
| Question | Answer |
|---|---|
| Small supplier limit | $30,000 in taxable sales over four consecutive calendar quarters |
| Voluntary registration | Allowed for small suppliers with taxable sales |
| Quick method revenue cap | $400,000 a year, tax included |
| Quick method credit | 1% on the first $30,000 of eligible sales a year |
| Annual reporting period | Taxable revenue of $1,500,000 or less in the previous year |
Why would a small business register early?
Because of input tax credits. When you’re registered, the tax you pay on business purchases comes off the tax you collect. The CRA describes net tax as the GST/HST collected minus those credits, and if the credits are larger than what you collected, you get a refund.
That’s the whole case for registering under $30,000. If you’re spending heavily to get started (equipment, software, a vehicle), you could be paying GST with nothing to set it against. But registering also means you charge customers tax, and some of them, especially individuals, won’t love the higher price. Think about who buys from you.
What does the regular method cost you on a real year?
Take an Ontario sole proprietor who sells $50,000 of services. At 13% HST, that’s $6,500 collected. Suppose $12,000 of business costs carried $1,560 of HST. Your net tax is $6,500 minus $1,560, which is $4,940. Test your own figures in the GST and HST calculator, and use the reverse calculator when a receipt only shows a total.
Now the quick method, which the CRA offers to businesses with up to $400,000 of yearly taxable supplies, tax included. You still charge the full 13% to customers. But you remit a smaller percentage of your tax-included sales. For Ontario services the CRA’s example rate is 8.8%. On $56,500 of tax-included sales that’s $4,972 before the 1% credit, close to the $4,940 above.
So the quick method didn’t win here. It helps when your costs carry little tax, as with a consultant working from home. It loses when you buy a lot. Some professions, including lawyers and accountants, are excluded from it altogether. You elect it on the GST74 form or through My Business Account, from the first day of a reporting period.
How often do I file?
The CRA sets a default. With $1,500,000 or less of taxable revenue in the previous year, you’re on an annual period. Above that, up to $6,000,000, you file quarterly. Annual filers generally file and pay within three months of year end. Sole proprietors with a December year end pay by April 30 and file by June 15. Quarterly filers have one month after each quarter. You can ask for more frequent periods, and some owners do that to get refunds sooner. Nil returns still need filing.
Mistakes that cost money
Registering late is the expensive one. The CRA can charge penalties and interest on returns or amounts it hasn’t received by the due date. We haven’t confirmed the exact penalty amounts, because the CRA says they vary with your filing history, so check the CRA page for your case.
The other mistakes are duller. Mixing personal and business receipts. Claiming credits without an invoice that shows the supplier’s details. And forgetting that your income tax is a separate bill, which the self-employed tax calculator estimates, though it leaves out EI. For a broader picture, run your profit through the income tax calculator as well.
Where the numbers come from
The threshold, quick method limits, reporting periods and due dates come from Canada Revenue Agency pages on GST/HST registration, the quick method, and filing deadlines, read in September 2026. The Ontario 8.8% rate is the CRA’s example for services. Rates differ by province and business type, so check the quick method guide before you elect. This site isn’t connected to the CRA.
Frequently asked questions
Do I need a GST number under $30,000?
No, not as a small supplier. You can still register voluntarily if you make taxable sales.
What are input tax credits?
They are the GST/HST you paid on business purchases, taken off the tax you collected. If they exceed it, you get a refund.
Who can use the quick method?
Businesses with up to $400,000 a year in taxable supplies, tax included, and some excluded professions such as lawyers and accountants can't.
When is an annual GST return due?
Generally three months after year end. Sole proprietors with a December year end pay by April 30 and file by June 15.
Do I file if I had no sales?
Yes. The CRA says nil returns must still be filed.
- GST, HST, PST and QST explained for every province
Which GST, HST, PST or QST applies where you shop or sell in Canada, the 2026 rates for every province, who must register and how to add or remove tax
Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.