In Canada, small businesses must register for GST/HST when their total revenue reaches specific thresholds set by the Canada Revenue Agency (CRA). For 2026, the standard registration threshold is $30,000 in revenue over four consecutive calendar quarters. If your business exceeds this amount, you're required to register within 29 days of reaching the limit. However, you can choose to register voluntarily even if you're below the threshold, which may help you claim input tax credits on business expenses. The CRA uses a rolling four-quarter test to determine if you've crossed the registration threshold. This means the CRA looks at your revenue over the most recent four calendar quarters (the most recent 12 months of business activity) to see if it exceeds $30,000. Key points about the threshold: - The $30,000 limit applies to your total worldwide revenue from your business - Only revenue from Canadian sales counts toward this threshold - Revenue includes sales of goods, services, and rentals - The threshold is checked every three months - Once you register, you stay registered unless you meet specific conditions to deregister Most small business owners need to register when they cross the $30,000 threshold.
No, registration is not mandatory if you stay below the $30,000 threshold, but you can register voluntarily. Many small business owners choose to register early to claim input tax credits on business expenses and appear more established to customers.
You'll owe GST/HST on all your sales retroactively, plus interest and penalties from the date you should have registered. The CRA can also assess you for unpaid GST/HST even if you haven't filed returns yet.
The CRA checks your revenue every three months using a rolling four-quarter test. You should track your revenue monthly and watch for when your most recent 12 months of sales exceed $30,000. Once you hit the limit, you have 29 days to register.
Yes, you can request deregistration if your revenue stays below $30,000 for four consecutive quarters. However, the CRA must approve your request, and there may be timing and other conditions that affect when deregistration takes effect.
Yes, the CRA combines revenue from all your business locations and activities. If you operate multiple businesses, revenue from each is added together to determine if you've reached the registration threshold.