CRA Accounts
GST/HST Registration Threshold in Canada
Learn how the GST/HST registration threshold works in Canada, including the small supplier threshold and when to register for GST today. Verify with the CRA.
In Canada, the GST/HST registration threshold is the revenue level at which a business — including a sole proprietorship — must register for a GST/HST account with the Canada Revenue Agency (CRA). Generally, you stop being a small supplier once your taxable supplies exceed the small supplier threshold, measured over four consecutive calendar quarters, or sooner if a special rule applies to your industry. The exact dollar figure is set by the CRA; confirm the current amount on the CRA website before deciding, because it can change.
Why the threshold exists
GST/HST is a consumption tax that businesses collect on behalf of the federal government and participating provinces. Small suppliers below the threshold are relieved from collecting and remitting it, which keeps compliance costs low for very small operations. Once you cross the threshold, you are expected to charge GST/HST on taxable supplies, file returns, and remit the tax collected. In exchange, you can claim input tax credits (ITCs) for GST/HST paid on business purchases, which often offsets the extra paperwork.
How the small supplier threshold is measured
Most businesses use the four-consecutive-calendar-quarter test. At the end of each calendar quarter, you look back over the previous four quarters. If your total taxable supplies from all your businesses exceed the threshold, you cease to be a small supplier and must register within the deadline the CRA sets. Two points matter most:
- Only taxable supplies count. That includes sales taxed at 5% GST, sales taxed at the HST rate in participating provinces, and zero-rated supplies such as many exports and basic groceries.
- Exempt supplies do not count. Items such as certain health care services, some childcare, and most long-term residential rent are exempt, so they are excluded from the calculation.
Your taxable supplies generally include sales from all the businesses you operate and, in some cases, those of associated persons. Sales of business assets can also count. If you are unsure whether a particular sale belongs in the calculation, review the CRA guidance or speak with a qualified tax professional.
| Type of supply | Generally counts toward the threshold? |
|---|---|
| Taxable sales (GST/HST charged) | Yes |
| Zero-rated supplies (for example, exports, basic groceries) | Yes |
| Exempt supplies (for example, many health services, residential rent) | No |
| Sales of eligible business assets | Often yes — confirm with the CRA |
When to register for GST/HST
There are two main situations that trigger registration:
- You exceed the small supplier threshold. Once your taxable supplies cross the threshold over the measurement period, you must register by the CRA deadline and begin charging GST/HST.
- You are no longer a small supplier for another reason. Taxi and commercial ride-sharing businesses, for example, generally must register regardless of how much revenue they earn.
If you are below the threshold, registration is usually optional. Many sole proprietors register voluntarily to recover GST/HST paid on startup costs, equipment, or inventory — especially when their customers are businesses that can claim ITCs themselves.
Voluntary registration: trade-offs to weigh
Voluntary registration is not obligation-free. Once registered, you must charge GST/HST on taxable supplies, file returns on schedule even in periods with no sales, and keep adequate records. You may also need to adjust your bookkeeping or choose an accounting method. The GST/HST Quick Method can simplify remittances for some small businesses, but it does not suit everyone. Compare the cost of extra administration with the benefit of input tax credits before deciding.
Special situations for sole proprietors
A sole proprietorship is not a separate legal entity, so the threshold applies to you as an individual, including taxable supplies from any other businesses you operate. If you are part of a partnership, the partnership's supplies and your share of them can affect the calculation. Non-residents carrying on business in Canada may also have registration obligations. Quebec is a special case: Revenu Québec administers GST/HST there, so businesses in that province generally register through Revenu Québec rather than the CRA. Confirm your province's rules before you register.
How to register for a GST/HST account
Registration is usually completed online through CRA My Business Account or the CRA's online registration service. Before you start, you will need a Business Number (BN) with a GST/HST program account. If you do not have a BN yet, see how to get a Business Number in Canada. A BN is the umbrella identifier; the GST/HST account is the program account attached to it — see Business Number vs GST/HST number for that distinction. Full steps appear in how to register for GST/HST.
After registration, keep your filing and reporting up to date. If your revenue later falls below the threshold, you may be able to cancel the account, but specific rules apply — see how to cancel a GST/HST account. This page is general information, not legal or tax advice, and the current threshold should always be confirmed with the CRA today.
Frequently asked questions
What is the GST/HST registration threshold in Canada?
The threshold is the amount of taxable supplies — measured generally over four consecutive calendar quarters — above which a small supplier must register for a GST/HST account with the CRA. The CRA sets the current dollar amount and it can change, so confirm the figure on the CRA website. Taxable and zero-rated sales count; exempt supplies do not.
When do I have to register for GST/HST as a sole proprietor?
You generally must register once your taxable supplies exceed the small supplier threshold, or if you stop being a small supplier for another reason, such as operating a taxi or commercial ride-sharing business. Registration must be completed by the CRA's deadline after you cross the threshold. Below the threshold, registration is usually voluntary.
Does the small supplier threshold apply to all my businesses?
Generally yes. The threshold applies to you as a person, so taxable supplies from other businesses you operate, and in some cases those of associated persons, are combined. Partnerships or corporations you are associated with may also affect the calculation. Because the rules can be complex, confirm your situation with the CRA or a qualified tax adviser.
Can I register for GST/HST before I reach the threshold?
Yes. Most businesses below the threshold can register voluntarily. That lets you claim input tax credits for GST/HST paid on business purchases, but it also means you must charge GST/HST on taxable supplies and file returns on schedule, even with no revenue. It tends to make the most sense when your customers are businesses that can claim those credits.