Whether you need to charge GST/HST as a contractor depends on your annual revenue and the type of services you provide. If your total revenue exceeds $30,000 in any four consecutive calendar quarters, the CRA requires you to register for GST/HST. However, even below this threshold, you may choose to register voluntarily if it makes financial sense for your business. Once registered, you must charge tax on most supplies and can claim input tax credits for business expenses. The $30,000 threshold is the key number for Canadian contractors. This is a turnover test, not a profit test. If your total billing across all clients reaches $30,000 in any four consecutive calendar quarters, registration becomes mandatory within 29 days of crossing that threshold. Some services are exempt from GST/HST, including: - Financial services (consulting on investments, accounting advice) - Healthcare services provided by licensed practitioners - Certain educational services - Residential rent If you provide only exempt services, you don't need to register even if your income exceeds $30,000. Always check the CRA guidance for your specific service type. Even if you're below the $30,000 threshold, registering voluntarily can be advantageous.
The threshold is $30,000 in total revenue across any four consecutive calendar quarters. Once you exceed this amount, you have 29 days to register with the CRA. This is a mandatory threshold, not optional.
Yes, you can register voluntarily even if you earn less than $30,000 annually. This may help you compete for clients who prefer registered contractors and want to claim input tax credits on their payments to you.
Not all services are taxable. Some services like financial advisory, healthcare, and education are exempt from GST/HST. Check the CRA rules for your specific service type to confirm whether tax applies.
If you miss the 29-day registration deadline after crossing $30,000 in revenue, the CRA can assess you retroactively for unpaid GST/HST on all supplies dating back to when you should have registered. Penalties and interest may also apply.
Most new contractors file quarterly GST/HST returns. Your filing frequency may change based on your revenue level or CRA assignment. You'll receive confirmation of your filing frequency when you register.