If you sell taxable goods or services in Canada, you are a “small supplier” — and exempt from charging GST/HST — until your revenue crosses $30,000. Almost everyone knows the number. Rather fewer know the period it applies to, which is where the expensive mistakes live.
It is four consecutive quarters, not a calendar year
The Canada Revenue Agency measures your worldwide taxable supplies over four consecutive calendar quarters — a rolling window, not the tax year. A business that bills $10,000 a quarter steadily crosses $30,000 during the fourth quarter regardless of where that falls in the calendar.
Charities, public institutions and other public service bodies have a higher threshold of $50,000 over the same four-quarter window.
Two ways to lose small supplier status
The timing depends on how you cross the line, and the two cases are treated quite differently.
- You exceed $30,000 within a single calendar quarter. Small supplier status ends immediately. Your effective registration date is no later than the day of the sale that took you over, and that sale itself is taxable. You have 29 days from that day to register.
- You exceed $30,000 across four quarters but not in any single one. You stop being a small supplier at the end of the month following the quarter in which you crossed. Registration must be effective no later than your first supply after that.
The first case is the one that catches people. A single large contract can end your exemption on the spot, and the tax is owed on that contract — not on the next one. If you did not add GST/HST to the invoice, it comes out of your own margin.
What registration actually obliges you to do
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Once registered you charge GST or HST at the rate for the province where the customer takes delivery — 5% GST in Alberta and the territories, 13% HST in Ontario, 15% in New Brunswick, Newfoundland and Labrador, and Prince Edward Island, and 14% in Nova Scotia since April 2025. British Columbia, Saskatchewan, Manitoba and Quebec charge 5% GST alongside a separate provincial tax.
You then file returns — annually, quarterly or monthly depending on revenue — and remit the difference between the tax you collected and the input tax credits you claim on business purchases.
Why registering early is often worth it
Registration is voluntary below the threshold, and for many businesses it pays from day one. The reason is input tax credits: once registered, you recover the GST/HST you pay on business expenses — equipment, software, professional fees, supplies, a share of vehicle costs.
If you sell mostly to other registered businesses, the tax you add costs your customers nothing, because they reclaim it. You gain the credits and they are indifferent. Registering early is close to free money in that situation.
The calculation flips if you sell to consumers. Adding 13% to a retail price either costs you sales or comes out of your margin, and you have taken on filing obligations for the privilege. Businesses in a start-up phase with heavy equipment purchases and few sales are the other clear case for registering early — the credits can be worth more than the tax collected, producing a refund.
The Quick Method
Smaller registrants can elect the Quick Method, which lets you remit a fixed percentage of your GST/HST-included sales instead of tracking input tax credits on every purchase. It trades some accuracy for much less bookkeeping, and it tends to favour service businesses with few taxable inputs. Since it is an election with its own eligibility limits, it is worth a conversation with an accountant before choosing it.
Whichever route you take, keep the GST/HST you collect mentally separate from your revenue. It was never yours. Businesses that treat collected tax as working capital discover the problem at filing time, and the CRA is not a flexible creditor.
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Frequently asked questions
- Is the $30,000 threshold per calendar year?
- No. It is measured over four consecutive calendar quarters on a rolling basis, so you can cross it partway through a year.
- What happens if I exceed $30,000 in one quarter?
- You stop being a small supplier immediately. Your registration is effective no later than the day of the sale that took you over, that sale is taxable, and you have 29 days to register.
- Should I register before I have to?
- Often yes if you sell mainly to other registered businesses or are buying significant equipment, because you recover GST/HST on purchases through input tax credits. Less attractive if you sell to consumers.
- Does the $30,000 include sales outside Canada?
- The test uses worldwide taxable supplies, so revenue from outside Canada can count towards the threshold. Zero-rated supplies are included; exempt supplies are not.
General information only — not tax, legal, accounting or financial advice. Rates change and individual circumstances vary. Confirm figures with the CRA, the IRS, your state or provincial authority, or a licensed professional before acting on them.
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Page content last updated 2026-08-08
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