How to Cancel a GST/HST Account in Canada

To cancel a GST account in Canada, you first confirm you are no longer required to be registered, file a final GST/HST return and remit any tax owing, then ask the CRA to close the GST/HST program account linked to your Business Number (BN). You can make the request through CRA My Business Account, by telephone, or by letter. Closing the GST/HST account does not close your BN or a payroll account.

When you can cancel a GST/HST account

You are generally allowed to close a GST/HST account only when you stop making taxable supplies in Canada, or when your revenue falls below the small supplier threshold and you are not registered voluntarily. If you keep selling taxable goods or services above the threshold, registration is mandatory and the CRA will not cancel the account simply because you would prefer not to collect tax.

Typical reasons a sole proprietor asks for cancellation, as of the current tax year, include:

• Selling or winding down the business that made taxable supplies.
• Falling back under the small supplier threshold and choosing not to stay registered voluntarily.
• Incorporating and registering the corporation under its own BN instead.
• Having registered by mistake without ever making a taxable supply.

If registration was an error, explain that to the CRA. The cancellation may be backdated to the original registration date, but confirm the treatment with the CRA or a tax professional. The rules on when registration is required are explained in GST/HST registration threshold in Canada.

Before you cancel: file your final return and pay what you owe

Closing an account does not erase the period it was open. You must file a final GST/HST return for the time up to your effective cancellation date, report the tax you collected, and remit any net tax owing. In some situations you may also have to repay input tax credits (ITCs) claimed on assets or inventory you still hold, so verify what is owed before assuming nothing is due.

A practical checklist:

1. Reconcile sales, GST/HST collected, and ITCs for the final period.
2. File the final return by your normal filing due date, unless the CRA sets a different one.
3. Pay the balance owing to avoid interest and penalties.
4. Keep copies of the return, the cancellation request, and CRA confirmations.

How to close a GST/HST account with the CRA

There are three usual routes, and in every case the CRA decides the actual cancellation date.

Getting online access is covered in CRA My Business Account setup and guide, and the difference between your BN and your GST/HST account number is explained in Business Number vs GST/HST number.

The cancellation effective date matters

Cancellation is not automatic on the day you ask. The CRA generally sets the effective date as the day you stopped making taxable supplies, or another date you can support. You must charge, collect, and remit GST/HST on supplies made up to and including that date, and you cannot claim ITCs for property or services acquired afterwards.

Cancel too early — while you still exceed the small supplier threshold or keep making taxable supplies — and the CRA can reverse the cancellation, leaving you responsible for tax you failed to collect. Get the date right and note it in your records.

What closing a GST/HST account does not do

A GST/HST account is one program account under your nine-digit BN. Closing it does not:

• Close your Business Number or a payroll (RP) account.
• Close a corporate income tax (RC) account.
• Cancel a provincial sales tax registration, such as QST in Quebec or PST in British Columbia, Saskatchewan, or Manitoba, which are separate.
• Remove your obligation to file any outstanding returns.

If other parts of your BN need changes, see how to update your CRA business account. If you are restructuring rather than simply stopping, sole proprietorship vs corporation in Canada outlines what changes when you incorporate.

After cancellation: records, ITCs, and re-registering

Keep your books and records for the retention period the CRA requires — generally six years from the end of the last tax year the records relate to, unless the CRA tells you otherwise. If you start making taxable supplies again and exceed the threshold, you must register once more; depending on the circumstances the CRA may reopen the same GST/HST account rather than issue a new number.

Voluntary registration is possible again later if you want to claim ITCs, and how to register for GST/HST in Canada walks through that process step by step.