GST/HST Rates, Registration & Filing in Canada

Navigating the financial landscape of a Canadian business is a journey filled with unique challenges and obligations. Among the most critical of these is understanding and managing the Goods and Services Tax (GST) and the Harmonized Sales Tax (HST). This isn’t just an accounting formality; it is a fundamental aspect of your business’s cash flow, pricing strategy, and legal compliance. For many entrepreneurs, freelancers, and small business owners, the web of rules surrounding this value-added tax can seem daunting. Questions about who needs to register, what rates to charge, and how to handle the money collected are constant.

This guide is designed to be your single, most comprehensive resource for everything related to GST/HST in Canada for the year 2025. We will demystify the system, transforming complex tax issues into clear, actionable knowledge. Our goal is to empower you with the confidence to manage your sales tax obligations effectively, ensuring you not only comply with the Canada Revenue Agency (CRA) but also leverage the system to your advantage by recovering the tax you pay on your business expenses. From the initial gst registration to filing your final tax return, this ultimate guide will cover every detail you need to know.

What Are GST and HST in Canada? A Clear Definition

At its core, the Canadian sales tax system is built upon a federal framework that is applied consistently across the nation, with provincial variations creating a layered structure. Understanding the distinction between the three primary components—GST, HST, and PST—is the first step toward mastering your tax obligations.

The Federal Goods and Services Tax (GST) Explained

The Goods and Services Tax (GST) is the cornerstone of Canada’s consumption tax system. It is a federal tax, currently set at a rate of 5 percent, applied to the sale of most goods and services at every stage of the supply chain. When a business provides taxable goods or services within Canada must charge this tax. The key principle of this federal goods and services tax is that it’s a value-added tax. This means the tax is applied on the value added at each step, and businesses can generally recover the GST they pay on their own expenses. The Government of Canada implemented this system to be more efficient and fairer than previous federal sales taxes. Any business that is registered is required to collect and remit this tax to the Canada Revenue Agency.

The Harmonized Sales Tax (HST): A Provincial-Federal Combination

To simplify the tax collection process, several provinces and territories have chosen to combine their provincial sales tax with the federal GST. This blended tax is known as the Harmonized Sales Tax (HST). Instead of businesses having to manage two separate taxes (one federal, one provincial), they charge and remit one single tax. The HST rate varies because it includes the 5% federal GST portion plus a provincial portion. The participating provinces are Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. For a business operating in these provinces, you don’t charge “GST”; you charge the applicable HST. The underlying rules for what is taxable generally follow the federal GST framework, making administration much simpler for businesses.

Understanding Provincial Sales Tax (PST) in Conjunction with GST

Not all provinces have chosen to harmonize their sales tax with the federal system. Provinces such as British Columbia, Saskatchewan, and Manitoba have retained their own separate Provincial Sales Tax (PST). Businesses in these provinces must manage two distinct taxes: they must charge gst (the 5% federal portion) and also charge the applicable PST on certain goods and services according to their province’s specific rules. This creates an extra layer of administration, as the rules for what is subject to PST can differ from GST rules, and the taxes are remitted to two different government bodies—the federal GST goes to the CRA, and the PST goes to the respective provincial finance ministry. Alberta, the Northwest Territories, Nunavut, and Yukon do not have a provincial sales tax, so businesses there only need to deal with the 5% GST. Understanding this distinction is crucial, as the tax you charge depends entirely on where your customer is located, a concept we’ll explore under the “Place of Supply” rules.

Who Needs to Register for a GST/HST Account?

One of the most pressing questions for any new or growing business is: “Do I need to register for GST/HST?” The answer is not always straightforward and hinges on specific revenue thresholds and business activities. The CRA sets out clear registration requirements to determine who must register for an account.

The $30,000 Small Supplier Rule Explained

The primary rule governing mandatory registration is the small supplier threshold. A business is considered a small supplier and is not required to register for a GST/HST account if its total worldwide revenues from taxable supplies are $30,000 or less over the last four consecutive calendar quarters. This threshold is the great divider: once you cross it, registration becomes mandatory.

This rule is designed to relieve very small businesses, part-time freelancers, and hobbyists from the administrative burden of having to register and collect sales tax. However, it’s critical to understand what’s included in this calculation. The $30,000 figure refers to your total revenue from taxable goods and services, before expenses. It does not include revenue from exempt supplies like financial services, but it does include revenue from zero-rated supplies, such as exports. This is an important distinction that can affect your calculation. If you are operating a business and your revenues are approaching this number, you must monitor them closely each quarter.

Calculating Your Revenue: The Four Consecutive Quarters Rule

The $30,000 threshold is not based on a single calendar year. Instead, it’s a rolling calculation based on any period of four consecutive quarters. This is a point of frequent confusion. You must look at your revenues at the end of every calendar quarter (March 31, June 30, September 30, December 31) and sum up the revenues from that quarter and the three that preceded it.

Let’s illustrate with a scenario. Imagine a freelance graphic designer with the following revenues:

• Q3 2024 (July 1 – Sept 30): $7,000
• Q4 2024 (Oct 1 – Dec 31): $8,000
• Q1 2025 (Jan 1 – Mar 31): $9,000
• Q2 2025 (Apr 1 – June 30): $7,000

At the end of Q2 2025, the designer calculates their revenue for the last four consecutive quarters: $7,000 + $8,000 + $9,000 + $7,000 = $31,000.

Because they have exceeded the $30,000 threshold in this four-quarter period, they are no longer a small supplier. Their effective date of registration must be no later than the beginning of the month following the date they exceeded the threshold. The first sale they make after this date is subject to gst or HST. They are now required to pay gst they collect to the CRA.

Mandatory Registration vs. Voluntary Registration: Pros and Cons

When your revenue exceeds the $30,000 threshold, registration is no longer a choice; it is mandatory. You have a grace period of 29 days from the day you exceeded the threshold to submit your gst registration application.

However, many businesses that fall below the threshold choose to register voluntarily. Why? The single biggest advantage is the ability to claim Input Tax Credits (ITCs). As a registrant, you can recover the gst or HST that you paid on business expenses. If you are starting a business that requires significant upfront investment in equipment, supplies, or rent, you will be paying a lot of GST/HST. Without being registered, this gst paid is simply a cost. By registering, you can claim these amounts as itcs and receive a refund from the CRA, which can significantly improve your cash flow.

Pros of Voluntary Registration:

• Claim ITCs: You can recover the GST/HST paid on your business purchases and expenses.
• Appears More Established: Having a GST/HST number can make your business appear larger and more established to clients, particularly in a B2B context.

Cons of Voluntary Registration:

• Administrative Burden: You must register, charge gst or HST on your sales, track all the tax, and file regular returns with the CRA.
• Higher Prices: Your prices will be 5% to 15% higher for consumers and businesses that cannot claim ITCs, which could make you less competitive if your market is price-sensitive.

The decision to register voluntarily requires careful consideration of your business model, your customer base, and your expected expenses.

Special Cases: Taxi Drivers, Ride-Sharing, and Non-Residents

While the $30,000 rule applies to most businesses must follow it, there are important exceptions. The most notable exception is for taxi operators and commercial ride-sharing service drivers (like Uber or Lyft). Under the law, these individuals must register for GST/HST and collect the tax from the very first dollar of revenue. The small supplier threshold of $30,000 does not apply to them. This rule was put in place to ensure tax fairness and consistency across the passenger transportation industry.

Furthermore, there are specific rules for non-residents who are carrying on business in Canada. If a non-resident business is soliciting orders for goods to be imported into Canada or is providing services or intangible personal property to be consumed in Canada, they may be required to pay and register for GST/HST, even if they have no physical presence here. This is especially relevant in the age of e-commerce and digital services, where businesses from outside of Canada regularly sell to Canadian customers.

How to Register for a GST/HST Number: A Step-by-Step Guide

Once you’ve determined you need to register, either mandatorily or voluntarily, the process itself is relatively straightforward. It involves getting a master account number for your business and then adding the specific GST/HST program account to it. The entire process is managed by the Canada Revenue Agency.

Step 1: Getting Your Business Number (BN) from the CRA

Before you can register for a GST/HST account, you need a Business Number (BN). The BN is a nine-digit number that the CRA assigns to a business as a unique identifier for all its dealings with the federal government. Think of it as your business’s social insurance number. You will use this single BN for all your program accounts, including GST/HST, payroll deductions, corporate income tax, and import/export accounts.

You can register for a BN through several channels:

• Online: The Business Registration Online (BRO) service on the canada.ca website is the fastest and most convenient method. You can receive your BN instantly.
• By Phone: You can call the CRA’s Business Enquiries line and register with an agent over the phone.
• By Mail or Fax: You can fill out Form RC1, Request for a Business Number and Certain Program Accounts, and mail or fax it to the nearest tax center.

You will need to provide basic information about your business, such as the legal name, operating name, business structure (sole proprietorship, partnership, corporation), and primary business activities.

Step 2: Registering for the GST/HST Account (Online, Phone, Mail)

Once you have your nine-digit Business Number, you need to add the GST/HST program account to it. This will create your full 15-character GST/HST number (e.g., 123456789 RT 0001). The “RT” is the program identifier for GST/HST.

Just like with the BN, you can register for the GST/HST account using the same methods:

• Online: This is the easiest way. If you used the BRO service, you can register for the GST/HST account at the same time you get your BN. If you already have a BN, you can add it through the CRA’s “My Business Account” portal.
• By Phone: Call the Business Enquiries line and provide your BN to the agent to add the GST/HST account.
• By Mail or Fax: Use the same Form RC1 to add the GST/HST program account to an existing BN.

During the registration process, the CRA will ask for specific details, including your estimated annual sales, your fiscal year-end, and the date your GST/HST registration should become effective. They will also determine your reporting period (annually, quarterly, or monthly) based on your revenue estimates.

Special Registration Rules for Quebec (Revenu Québec)

It is critically important for businesses operating in Quebec to understand that the province has a unique administrative arrangement. While the GST is a federal tax, in Quebec, it is administered by Revenu Québec, not the CRA. Similarly, Quebec has its own provincial sales tax, the Quebec Sales Tax (QST), which is analogous to PST in other provinces.

Therefore, if your business is located in Quebec, you do not register with the CRA for GST. You must register for both GST and QST through Revenu Québec. They provide a single registration process for both taxes. Once registered, you will file a single combined return and remit both the GST and QST you’ve collected to Revenu Québec. They then forward the federal portion to the Government of Canada. This streamlined process is unique to Quebec and is a crucial detail for any entrepreneur in the province.

Current GST/HST Rates Across Canada for 2025

The rate of sales tax you must charge is not determined by where your business is located, but by the “place of supply”—typically the province where your customer receives the goods or services. This makes it essential to know the correct rate for every Canadian province and territory. Rates are divided into three categories: GST-only, HST-participating, and GST+PST jurisdictions.

GST-Only Provinces and Territories (5% Rate)

In these jurisdictions, there is no provincial sales tax, so businesses only charge the 5% federal GST.

• Alberta: 5% GST
• Northwest Territories: 5% GST
• Nunavut: 5% GST
• Yukon: 5% GST

Additionally, some provinces have a separate PST, but you still only charge the 5% federal GST on your invoice (the PST is handled separately). These are:

• British Columbia: 5% GST (+ PST)
• Manitoba: 5% GST (+ PST)
• Saskatchewan: 5% GST (+ PST)
• Quebec: 5% GST (+ QST, administered by Revenu Québec)

HST Participating Provinces and Their Rates

These provinces have harmonized their provincial sales tax with the federal GST, creating a single HST. When you provide goods or services to customers in these provinces, you charge the single HST rate.

• Ontario: 13% HST
• New Brunswick: 15% HST
• Newfoundland and Labrador: 15% HST
• Prince Edward Island: 15% HST

Important Update: Nova Scotia HST Rate Change to 14% in 2025

It is crucial for all businesses to be aware of a significant change occurring in 2025. Effective April 1, 2025, the province of Nova Scotia will be decreasing its HST rate from 15% to 14%. This change is due to a reduction in the provincial portion of the tax. Any sales of taxable supplies made to customers in Nova Scotia on or after this date will be subject to the new, lower 14% rate. Businesses must ensure their invoicing and point-of-sale systems are updated to reflect this change to avoid overcharging clients and to remain compliant.

Table of All Provincial and Territorial Sales Tax Rates

For quick reference, here is a comprehensive table of the applicable sales tax rates across Canada for 2025, taking into account the change in Nova Scotia.

How to Charge, Collect, and Remit GST/HST

Registering and knowing the rates is only half the battle. The ongoing process involves correctly charging the tax on your sales, documenting it properly, and then remitting the net amount to the government. This cycle is the core of your compliance responsibilities.

Applying the Correct Rate: The “Place of Supply” Rules

The “place of supply” rules are the set of guidelines that determine which province’s tax rate you must apply. It’s a critical concept in a country with multiple tax jurisdictions. Forgetting this can lead to significant errors.

• For Goods: The rule is generally straightforward. The tax rate is based on where the goods are delivered or made available to the customer. If your business is in Alberta (5% GST) and you ship a product to a customer in Ontario, you must charge the Ontario hst rate of 13%.
• For Services: The place of supply for a service is typically the province of the recipient’s address that you have on file in the normal course of business. If you are a consultant in British Columbia providing services to a client based in New Brunswick, you must charge 15% HST.
• For Intangible Personal Property (IPP): This category includes things like software, digital downloads, and intellectual property rights. The rules can be complex, but generally, the place of supply for intangible personal property is where the property can be used. For many digital services, this is the customer’s usual place of residence.

These rules ensure that tax is applied fairly based on where the consumption occurs, not where the business is located.

What Your Invoices Must Include (GST/HST Number, Rate Shown)

When you are a GST/HST registrant, your invoices and receipts must contain specific information to be considered valid for tax purposes. This is not only a requirement for you, but it’s also necessary for your business customers who need proper documentation to claim their own Input Tax Credits.

For sales over $30, your invoices should generally show:

• Your Business Number (your full 15-character GST/HST number).
• The invoice date.
• The total amount paid or payable.
• The total amount of GST or HST charged, or a statement that the total price includes the tax, along with the tax rate that was applied (e.g., “Total includes 13% HST”).
• The purchaser’s name (or trading name/authorized agent).

For sales of $100 or more, you must also show the amount of tax separately. Properly itemizing the gst collected is a key compliance step.

Remitting Your Collected Tax to the Canada Revenue Agency (CRA)

The GST/HST you collect from your customers does not belong to you. You are acting as a tax collector on behalf of the Government of Canada. You hold this money in trust until you are required to remit it to the CRA. Remittance is the act of sending the net tax you owe to the government. This is done at the same time you file your GST/HST return. The amount you remit is your total GST/HST collected minus any Input Tax Credits you are claiming. If your ITCs are greater than the tax you collected, the CRA will issue you a refund. You can remit your tax electronically through your bank, using the CRA’s My Payment service, or by mail.

Claiming Back GST/HST: Understanding Input Tax Credits (ITCs)

The ability to claim Input Tax Credits (ITCs) is the single most important financial benefit of being a GST/HST registrant. ITCs are the mechanism that makes GST a true value-added tax, ensuring that the tax is ultimately paid by the final consumer, not by the businesses in the supply chain.

What are Input Tax Credits (ITCs)?

Input Tax Credits (ITCs) are credits that allow you to recover the GST/HST you pay or owe on your legitimate business expenses. When you purchase goods and services for your business, whether it’s a new laptop, office rent, or materials for manufacturing, you pay GST or HST on those purchases. As a registrant, you can claim input tax credits to get that money back from the CRA. This process effectively reduces your net tax remittance. The core formula is:

GST/HST Collected on Sales – Input Tax Credits (ITCs) = Net Tax to Remit (or Refund)

This mechanism prevents tax from cascading, meaning tax being charged on top of tax as goods move through the production process. To claim an input tax credit, the expense must be reasonable and directly related to your commercial (taxable) activities.

What Business Expenses are Eligible for ITCs?

A wide range of business expenses are eligible for ITCs, provided you have the proper documentation (receipts and invoices showing the GST/HST paid). Some of the most common eligible expenses include:

• Operating Expenses: Commercial rent, utilities (hydro, heat), telephone, and internet services.
• Capital Assets: Purchases of equipment, vehicles, computers, and machinery used more than 50% in your commercial activities.
• Professional Fees: Fees paid to lawyers, accountants, and consultants.
• Supplies: Office supplies, cleaning supplies, and raw materials used in manufacturing.
• Travel and Meals: A portion of the GST/HST paid on travel, meals, and entertainment expenses incurred for business purposes (note: there are specific limitations on meals and entertainment).
• Marketing and Advertising: Costs for website hosting, online ads, and printed promotional materials.
• Freelancer and Contractor Fees: Payments to other businesses for services, provided they charged you GST/HST.

You cannot claim ITCs for expenses used to provide exempt supplies. If you provide a mix of taxable and exempt supplies, you must allocate your expenses and can only claim ITCs on the portion related to your taxable activities.

How to Calculate and Claim Your ITCs on Your Return

Calculating your ITCs is a process of diligent record-keeping. Throughout your reporting period, you must track all the GST/HST you have paid on purchases. You will need to sum up all the eligible GST/HST amounts from your receipts and invoices.

When you fill out your GST/HST return (Form GST34), there are specific lines for this calculation:

• Line 105 – Total GST/HST Collected or Collectible: This is where you report the total tax you charged your customers.
• Line 108 – Total ITCs: This is where you report the total sum of all the eligible ITCs you have calculated for the period.
• Line 109 – Net Tax: The form will guide you to subtract Line 108 from Line 105. If the result is positive, this is the amount you must remit to the CRA. If it is negative, this is the net gst rebate or refund you can expect to receive.

It is crucial to have all your supporting documents in order, as the CRA can request to see them during an audit to verify your ITC claims.

Taxable, Zero-Rated, and Exempt Supplies: What’s the Difference?

Understanding the three different categories of goods and services is fundamental to correctly applying GST/HST and claiming ITCs. Misclassifying a supply can lead to significant compliance errors.

Taxable Supplies (The Default Category)

This is the default and broadest category. A taxable supply is any good or service that is subject to GST/HST. This includes the vast majority of products and services exchanged in Canada, from the sale of a car to a haircut, from consulting services to commercial rent. When you provide a taxable supply, you must charge the applicable GST or HST and you can claim full ITCs on any expenses incurred to provide that supply. This includes both supplies taxed at the standard rates (5%, 13%, 15%) and those taxed at 0% (zero-rated).

Zero-Rated Supplies (0% Tax, but ITCs are Claimable)

Zero-rated supplies are a special class of taxable supplies that are taxed at a rate of 0%. This means you do not collect any GST/HST from your customer on these sales. However, because they are still considered “taxable,” you are entitled to claim full ITCs on the expenses you incurred to provide them. This is a significant advantage. The government has designated certain essential goods and services as zero-rated to make them more affordable and tax-free for the end consumer, while still allowing businesses in the supply chain to operate without a tax burden.

Key examples of zero-rated supplies include:

• Basic Groceries: This includes staples like milk, bread, vegetables, and meat. However, many snack foods, carbonated beverages, and prepared single-serving meals are specifically excluded and are taxable. The list of what constitutes basic groceries is very detailed.
• Prescription Drugs: Most drugs sold on a doctor’s prescription are zero-rated.
• Certain Medical Devices: This includes items like artificial teeth, wheelchairs, and hearing aids.
• Exports: Goods and services sold to customers outside of Canada are generally zero-rated. This is a key policy to ensure Canadian businesses can compete internationally without an embedded tax cost.

Exempt Supplies (No Tax, No ITCs)

Exempt supplies are goods and services that are not subject to GST/HST. When you provide an exempt supply, you do not charge your customer any GST or HST. Crucially, you are also not permitted to claim any ITCs on the expenses you incurred to provide that supply. This exemption means any GST/HST you pay on your business inputs becomes a cost that gets absorbed into your pricing.

Key examples of exempt supplies include:

• Financial Services: Most services provided by banks and other financial institutions, such as interest on loans and account fees.
• Long-Term Residential Rent: Rent for a residential apartment or house.
• Health and Dental Care: Services provided by doctors, dentists, and other registered health care practitioners.
• Educational Services: Most tuition fees for courses leading to a diploma or degree.
• Childcare Services: Most childcare services for children under 14 years of age.

If your business provides only exempt supplies, you cannot register for a GST/HST account.

Filing Your GST/HST Return: Deadlines and Frequencies

Compliance with the GST/HST system culminates in the timely filing of your tax return and the remittance of any net tax owing. The CRA sets specific reporting periods and deadlines that all registrants must follow.

Determining Your Filing Frequency (Annual, Quarterly, Monthly)

When you register for a GST/HST account, the CRA will assign you a reporting period based on your annual revenue from taxable supplies. This determines how often you need to file a return.

• Annual Filing: If your annual taxable supplies are $1.5 million or less, you will generally be assigned an annual reporting period. This is the most common frequency for small businesses.
• Quarterly Filing: If your annual taxable supplies are between $1.5 million and $6 million, you will be required to file on a quarterly basis.
• Monthly Filing: If your annual taxable supplies are over $6 million, you must file a return every month.

New registrants can often elect to file more frequently. For example, a new annual filer might choose to file monthly or quarterly to get more frequent refunds from their ITCs, which can be beneficial for cash flow in the early stages of a business.

GST/HST Filing and Payment Deadlines for 2025

The deadlines for filing your return and paying any amount owing depend on your reporting period.

• Monthly and Quarterly Filers: The deadline to file your return and make your payment is one month after the end of your reporting period. For example, for the quarterly period ending March 31, the deadline is April 30.
• Annual Filers (Corporations): The deadline is three months after the end of your fiscal year.
• Annual Filers (Individuals/Sole Proprietors): The deadline to file your GST/HST return is June 15. However, the deadline to pay gst you owe is April 30. This is a common point of confusion. Even though you have until June to file the paperwork, your payment is still due at the same time as your personal income tax payment.

Missing these deadlines can result in penalties and interest charges from the CRA.

How to File Your Return (Online, Paper, Quick Method)

The CRA provides several methods for filing your GST/HST return.

• Online: The fastest and most encouraged method is filing electronically. You can use GST/HST NETFILE directly on the CRA website or file through your “My Business Account” portal.
• By Phone: Some businesses may be eligible to use the GST/HST TELEFILE service, a 1-800 number that allows you to file using an automated system.
• By Mail: You can still file a paper return (Form GST34) by mailing it to your designated tax center.
• The Quick Method: For eligible small businesses, the CRA offers a “Quick Method” of accounting. Instead of tracking all the GST/HST paid on every individual expense, you charge the full GST/HST rate but remit a lower percentage of your sales to the CRA. You can then only claim ITCs on major capital purchases. This simplifies bookkeeping but may not be beneficial for businesses with high expenses and low-profit margins.

Special Topics and Common Questions

Beyond the core rules, there are several specific areas and common questions that frequently arise for businesses navigating the GST/HST system.

GST/HST for Digital Services and E-commerce

In recent years, Canada has updated its rules to ensure that the digital economy is taxed fairly. Non-resident vendors who sell digital services (like streaming subscriptions, software, and online gaming) to Canadian consumers are now generally required to register and charge GST/HST if their sales exceed the $30,000 threshold. This levels the playing field for Canadian companies. For domestic e-commerce businesses, the standard “place of supply” rules apply, meaning you must have a system in place to charge the correct provincial tax rate based on the customer’s shipping address.

Rules for Imports and Exports

The treatment of GST/HST for international trade is a key part of the system.

• Imports: When you import commercial goods into Canada, the Canada Border Services Agency (CBSA) will generally assess and collect the GST on the value of the goods at the border. If you are a GST/HST registrant, you can claim an ITC to recover this gst paid on importation, as long as the goods are for use in your commercial activities.
• Exports: The export of goods and services to customers outside of Canada is generally zero-rated. This means you do not charge your international customer any GST/HST, but you can still claim ITCs on your related business expenses. This policy makes Canadian businesses more competitive in the global market.

What is the GST/HST Credit for Individuals? (Brief Mention)

It’s important not to confuse the business GST/HST system with the personal GST/HST credit. The GST/HST credit is a tax-free quarterly payment made to individuals and families with low and modest incomes. Its purpose is to help offset the sales tax they pay throughout the year. This credit is an entirely separate program from the process of collecting, remitting, and claiming ITCs that businesses must manage.

Conclusion: Key Takeaways for GST/HST Compliance in Canada

Successfully managing your GST/HST obligations is a non-negotiable part of doing business in Canada. While the system is detailed, it is also logical. By focusing on a few core principles, you can maintain compliance and manage your cash flow effectively.

The key takeaways are:

1. Know Your Status: Continuously monitor your revenue against the $30,000 small supplier threshold calculated over four consecutive calendar quarters.
2. Register When Required: Once you cross the threshold, register promptly with the CRA (or Revenu Québec) to avoid penalties. Consider voluntary registration if claiming ITCs is beneficial for your business.
3. Charge the Correct Rate: Use the “place of supply” rules to apply the correct provincial rate (depending on the province) to every sale. Keep an eye on rate changes, like the 2025 update in Nova Scotia.
4. Track Your ITCs: Keep meticulous records of all the GST/HST you pay on legitimate business expenses. This is how you recover the gst and reduce your net tax bill.
5. File and Remit on Time: Understand your filing frequency and meet all deadlines for filing your tax return and remitting any gst collected.

By mastering these pillars of the GST/HST system, you can turn a perceived administrative burden into a standard and manageable part of your successful business operations.

FAQ (Frequently Asked Questions)