GST/HST 101: Do You Need to Register and How Does It Work?

Many new business owners don’t know when to register for GST/HST — or what happens after they do.

When Must You Register?

Once your business earns more than $30,000 in a calendar quarter or in four consecutive quarters, you must register for GST/HST.

Voluntary Registration

You can register voluntarily before hitting the threshold. This allows you to claim Input Tax Credits (ITCs) on your purchases.

Collecting HST From Clients

Once registered, you charge 13% HST (in Ontario) on your taxable services. You remit the net amount to the CRA after deducting ITCs.

Filing Frequency

Annual, quarterly, or monthly — depending on your revenue. We recommend quarterly for most small businesses.

Quebec: QST Too

If you’re in Quebec, you also collect QST (9.975%) on top of GST. That’s two separate registrations and remittances.

Penalties for Non-Compliance

Failing to register or remit on time leads to penalties and interest. City Tax Filing can set you up correctly from day one.