Whether you're starting a sole proprietorship or a corporation, one of the most common tax questions is: do I need to register for GST/HST? The answer depends on your revenue, province, and business type. This guide explains the $30,000 threshold rule, HST rates across Canada, and exactly how to register — so you never get caught offside with the CRA.
GST vs HST vs QST: What's the Difference?
Canada doesn't have a single national sales tax. Instead, the federal government collects GST (Goods and Services Tax) at 5%, and most provinces layer their own sales tax on top. The combination takes different forms:
- HST (Harmonized Sales Tax): In provinces that have merged their provincial sales tax with the federal GST, you collect one combined HST rate and remit it all to CRA. The CRA distributes the provincial portion. Ontario, New Brunswick, Nova Scotia, PEI, and Newfoundland use HST.
- GST + PST: Provinces that have not harmonized charge GST federally (collected and remitted to CRA) and a separate provincial sales tax (PST) collected and remitted to the province. BC, Saskatchewan, and Manitoba use this model.
- GST + QST: Quebec has its own system — GST (federal) plus QST (Quebec Sales Tax), administered by Revenu Québec for both taxes.
- GST only: Alberta has no provincial sales tax. You only collect and remit 5% GST.
Sales Tax Rates by Province (2026)
| Province / Territory | Tax Type | Total Rate |
|---|---|---|
| Ontario | HST | 13% |
| British Columbia | GST + PST | 5% + 7% = 12% |
| Alberta | GST only | 5% |
| Quebec | GST + QST | 5% + 9.975% ≈ 15% |
| Nova Scotia | HST | 15% |
| New Brunswick | HST | 15% |
| Prince Edward Island | HST | 15% |
| Newfoundland & Labrador | HST | 15% |
| Manitoba | GST + RST | 5% + 7% = 12% |
| Saskatchewan | GST + PST | 5% + 6% = 11% |
| Northwest Territories | GST only | 5% |
| Yukon | GST only | 5% |
| Nunavut | GST only | 5% |
Rates are current as of 2026 and are subject to change without notice. Always verify the current rate with CRA or the relevant provincial tax authority before filing. GST/HST registration is free — CRA does not charge a fee.
The $30,000 Threshold Rule
You are required to register for GST/HST when your total taxable revenues exceed $30,000 CAD in any single calendar quarter, or in the previous four consecutive calendar quarters combined.
"Taxable revenues" means revenues from taxable supplies (most goods and services sold in Canada). Certain supplies are exempt (e.g., most residential rent, medical services, childcare) or zero-rated (e.g., basic groceries, exports) — these don't count toward the $30,000 threshold.
Once you cross the threshold in any 12-month period, you have 30 days to register with CRA. Failure to register on time means you still owe the tax — you just have to pay it out of pocket rather than collecting it from customers.
Should You Register Voluntarily Before $30,000?
Many businesses register for GST/HST voluntarily, even before reaching the threshold. The primary reason: Input Tax Credits (ITCs).
When you're registered for GST/HST, you can claim back the GST/HST you paid on business expenses — equipment, software, rent, professional services, and more. If you're spending money to grow your business before revenue materializes, voluntary registration lets you recover those costs from day one.
The downside: you must now charge GST/HST on your invoices, which adds a step to your billing process and means your prices appear higher to non-registered customers who can't claim ITCs.
Recommendation: Register voluntarily if you have significant startup costs or if your customers are other businesses (who can claim ITCs back — so the tax is invisible to them). Skip voluntary registration if your customers are individual consumers who can't claim ITCs back and your expenses are minimal.
How to Register for GST/HST
There are three ways to register:
- Online: Through CRA's Business Registration Online (BRO) at canada.ca. You can register for a BN and GST/HST account simultaneously. Typically processed within minutes.
- By phone: Call CRA Business Enquiries at 1-800-959-5525. Available Mon–Fri during business hours.
- Through SimplyfyBiz: GST/HST registration is included with all SimplyfyBiz incorporation packages. We register your RT account as part of the incorporation service. Learn more →
Registration is free.
What Happens After You Register?
After registration, CRA assigns you a GST/HST registration number (your BN9 + "RT 0001" in the format 123456789 RT 0001). You must:
- Add your GST/HST number to all invoices
- Charge the correct rate based on where your customer is (the "place of supply" rules determine the rate)
- Track all GST/HST collected (on sales) and paid (on business expenses for ITC claims)
- File GST/HST returns on the schedule CRA assigns (monthly, quarterly, or annually based on revenue)
- Remit net tax owing (tax collected minus ITCs claimed) by the due date
How Long Does Registration Take?
Online registration through CRA's Business Registration Online is typically immediate — you receive a confirmation and BN on-screen. The physical tax account confirmation letter arrives by mail within 5–10 business days. You can start collecting and remitting GST/HST as soon as you have your registration number.
Frequently Asked Questions
Do sole proprietors need to register for HST?
Yes, if your revenues exceed $30,000 CAD in any 12-month period or single quarter. If you stay under the threshold, registration is optional. Many sole proprietors register voluntarily to claim ITCs on business expenses — especially at startup when costs are high and revenue is low.
What is the difference between GST and HST for a business?
Mechanically, they work the same way — you collect tax on sales and claim ITCs on purchases. The difference is the rate and how remittance works. For HST provinces, you collect one combined rate and remit it all to CRA (who distributes the provincial portion). For GST + PST provinces, you collect and remit GST to CRA and PST separately to the province.
Does a new corporation need to register for GST/HST right away?
Not necessarily. If your projected revenues are under $30,000, you're not required to register. However, most incorporated businesses register immediately or within the first year to claim ITCs on startup costs. SimplyfyBiz includes GST/HST registration in all incorporation plans. See pricing →
What are Input Tax Credits (ITCs) and how do I claim them?
An Input Tax Credit is a credit for the GST/HST you paid on business expenses — you deduct it from the GST/HST you collected, and only remit the difference to CRA. For example, if you collected $1,000 in HST and paid $400 in HST on business expenses, you remit $600 net. ITCs are claimed on your GST/HST return. Keep all receipts for expenses you claim as ITCs.