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Canada doesn’t have VAT. It has the GST, and in the HST provinces a combined tax, and the rule most people search for is this one: you must register once your taxable sales pass $30,000. That’s the small supplier threshold, and the CRA measures it over four consecutive calendar quarters. Registering for VAT, in Canadian terms, means registering for the GST/HST.
When do you have to register?
You’re a small supplier while your revenue from taxable sales stays at or under $30,000 across any four consecutive calendar quarters. Go over it and the clock starts. The CRA gives you 29 days to register.
There’s a second trigger that catches people out. If a single calendar quarter takes you over $30,000, you lose small supplier status right away. You have to register by that day and charge tax on the sale that pushed you over.
| Situation | What the CRA says |
|---|---|
| Under $30,000 over four quarters | Small supplier, registration not required |
| Over $30,000 in one quarter | Register on or before that day and charge tax on the sale that crossed it |
| Over $30,000 across several quarters | No longer a small supplier at the end of the month after the quarter you crossed |
| Taxi or ride-share driver | Register even if you’re a small supplier |
| Small supplier who wants to | Voluntary registration is allowed |
Should you register before you have to?
Sometimes. Registering early means you charge tax on every sale, and it also means you can recover the tax you pay on business costs. The catch is that customers who aren’t registered see a higher price. That trade depends on who you sell to, so we can’t give you one answer.
A business that sells mostly to other businesses often doesn’t mind, since those customers can claim the tax back. A business selling to the public may feel it more. Think about your customers first and the paperwork second. Ask yourself a plain question: would a 13% price jump lose me the sale? If yes, stay under the line as long as the rules allow.
A worked example with real numbers
You freelance in Ontario and bill $8,000 a quarter. After four quarters that’s $32,000, which is over the line. From then on every invoice carries 13% HST. On an $8,000 invoice that’s $1,040, for a total of $9,040. A $2,000 invoice carries $260.
The GST/HST calculator does the adding for you. If a client hands you a total that already includes tax, the HST reverse calculator takes the tax back out. Quebec has its own second tax, so try the GST and QST calculator there. We haven’t checked Revenu Quebec’s registration rules for this page, so read them before you rely on the $30,000 line.
What registering changes
You collect tax, you file returns, and you keep records to back them up. The tax you collect isn’t your income, so park it in a separate account. If you don’t, the return can come as a shock.
The flip side is that a registrant can generally claim input tax credits for tax paid on purchases used in commercial activities. Your net figure becomes tax collected minus tax paid on those costs. The self-employed tax calculator shows your income tax side, though it leaves EI out.
Mistakes to avoid
Watching only the calendar year is the classic slip. The test uses quarters, and one big quarter counts on its own. And the last one is assuming everything you sell is taxable. Some supplies are exempt, and exempt sales don’t count toward the threshold the way taxable ones do, so check your own product on the CRA site. We haven’t listed the exempt ones here.
Where the numbers come from
The $30,000 threshold, the quarterly tests, the 29-day rule and the taxi exception are from the Canada Revenue Agency page on when to register for and start charging the GST/HST. The 13% Ontario HST rate is from the CRA table of rates by province. Examples use our calculators.
Frequently asked questions
Does Canada have VAT?
No. The federal tax is the GST, and in some provinces it is combined with a provincial part as the HST. Quebec, BC, Saskatchewan and Manitoba have their own separate taxes.
What is the small supplier threshold?
$30,000 of taxable sales over four consecutive calendar quarters. You are a small supplier while you stay at or under it.
How long do I have to register?
The CRA says you have 29 days from your effective registration date.
Can I register if I am under $30,000?
Yes. The CRA allows small suppliers to register voluntarily if they make taxable supplies in Canada.
Who must register even under the threshold?
The CRA says taxi and ride-share drivers must register even if they are small suppliers.
- 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.