If you're self-employed in Canada and your gross revenue is $30,000 or more in any four consecutive calendar quarters, you must register for GST/HST with the Canada Revenue Agency. This rule may apply to you even if you haven't hit that threshold yet, because the CRA looks back at a rolling four-quarter window. Once registered, you'll collect GST/HST from your clients and remit it to the government, but you can also claim back the GST/HST you pay on business expenses. The registration deadline is typically 30 days after the end of the quarter when you cross the threshold. The GST/HST registration threshold in Canada is based on four consecutive calendar quarters of revenue. Here's what matters: When you hit the limit: Once your total revenue reaches $30,000 over any four-quarter period, registration becomes mandatory Timing works backward: The CRA calculates this on a rolling basis, so you could trigger registration even if revenue dips in the current quarter Specific to gross revenue: This includes all income from your self-employment business, before any expenses are deducted No exceptions for losses: A losing quarter doesn't reset or pause the four-quarter counting period Missing the registration deadline can result in penalties and interest
You must register if your gross revenue reaches $30,000 over any four consecutive calendar quarters. If you're below that threshold, registration is optional but can be beneficial if you want to claim GST/HST back on business expenses.
Late registration can result in penalties of up to 25% of the GST/HST owed, plus interest on back taxes dating to when you should have registered. You'll also owe GST/HST on all sales from the quarter you crossed the threshold.
Yes, you can register voluntarily even if you haven't reached the $30,000 threshold. This is useful if your clients expect GST/HST invoicing or if you want to claim back GST/HST on major equipment purchases.
Your filing frequency depends on your annual revenue and the CRA's assignment. It can be monthly, quarterly, or annually. The CRA will let you know your filing schedule when you register.
The threshold applies to gross revenue before any business expenses are deducted. A quarter with a loss still counts toward your four-quarter period for registration purposes.