# GST/HST for Self-Employed People and Small Businesses (Canada)

**Category:** [Tax Basics](https://community.mycartracks.com/c/small-business-tax-basics/43)
**Created:** 2026-05-15 10:44 UTC
**Views:** 2
**Replies:** 0
**URL:** https://community.mycartracks.com/t/gst-hst-for-self-employed-people-and-small-businesses-canada/411

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## Post #1 by @MyCarTracks_support

GST/HST, the goods and services tax/harmonized sales tax, for small businesses in Canada starts with two questions: do you make taxable supplies, and are you still a small supplier? Guidance from the Canada Revenue Agency (CRA), the federal tax agency, on [when to register and charge GST/HST](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/when-register-charge.html) generally requires registration when a business is no longer a small supplier and makes taxable supplies in Canada.

The $30,000 threshold is not an income-tax-free amount. It is generally a GST/HST small supplier threshold based on taxable supplies in one calendar quarter or over the previous four consecutive calendar quarters. Once you are registered, GST/HST becomes a separate workflow: charge the right rate, keep invoices and records, file returns, remit net tax, and claim input tax credits only when the CRA conditions are met.

This article is educational and is not tax, legal, accounting, payroll, GST/HST, Quebec sales tax (QST), or provincial tax advice. GST/HST treatment can change by type of supply, place of supply, registration status, reporting period, province or territory, QST status, industry, platform work, commercial ride-sharing, accounting method, and documentary evidence. Confirm your facts before registering, charging, filing, remitting, or claiming input tax credits (ITCs).

## Quick answer

Most self-employed people and small businesses need to review GST/HST when they make taxable supplies in Canada. If you exceed the general $30,000 small supplier threshold in one calendar quarter or over four consecutive calendar quarters, registration timing can start quickly. Taxi and commercial ride-sharing operators have special rules and generally cannot rely on the small supplier threshold.

A registrant charges GST/HST at the applicable rate, files GST/HST returns for the assigned reporting period, remits net tax, and may claim ITCs for GST/HST paid or payable on eligible purchases used in commercial activities. GST/HST is separate from income tax, Canada Pension Plan (CPP) or Quebec Pension Plan (QPP) contributions, employment insurance (EI), payroll, QST, provincial sales tax (PST), and corporate tax.

## GST/HST for small businesses in Canada

GST is the federal goods and services tax. HST is the harmonized sales tax used in participating provinces. Some provinces also have separate provincial sales tax systems, and Québec administers QST separately.

Current GST/HST rates include:

| Province or territory | GST/HST rate |
| --- | ---: |
| Alberta | 5% GST |
| British Columbia | 5% GST |
| Manitoba | 5% GST |
| Northwest Territories | 5% GST |
| Nunavut | 5% GST |
| Québec | 5% GST, plus QST where applicable |
| Saskatchewan | 5% GST |
| Yukon | 5% GST |
| Ontario | 13% HST |
| New Brunswick | 15% HST |
| Newfoundland and Labrador | 15% HST |
| Nova Scotia | 14% HST |
| Prince Edward Island | 15% HST |

The rate you charge can depend on the type of supply and place of supply. Do not charge one rate nationally without checking the customer's location and the CRA place-of-supply rules.

## Taxable, zero-rated, and exempt supplies

Before you decide whether to register or charge GST/HST, identify what you sell.

| Supply type | GST/HST treatment | ITC effect |
| --- | --- | --- |
| Taxable supplies | GST/HST is generally charged at the applicable rate | Registrants may be able to claim ITCs for related eligible expenses |
| Zero-rated supplies | GST/HST is charged at 0% | Registrants may still be able to claim ITCs for related eligible expenses |
| Exempt supplies | GST/HST is not charged | ITCs are generally not available for expenses used to make exempt supplies |

The distinction matters. A business with exempt supplies may not collect GST/HST and may not get ITCs for those expenses. A business with zero-rated supplies may charge 0% but still need a different registration and ITC analysis.

## When you need to register

For many businesses, the small supplier threshold is more than $30,000 in taxable supplies in a single calendar quarter or over the previous four consecutive calendar quarters. The timing is different for each test.

| Situation | What usually happens |
| --- | --- |
| You do not exceed $30,000 over the relevant period | You may remain a small supplier unless a special rule applies |
| You exceed $30,000 in one calendar quarter | You stop being a small supplier on the supply that pushed you over; registration is generally due within 29 days of that supply |
| You exceed $30,000 over four consecutive calendar quarters, but not in one quarter | You generally stop being a small supplier at the end of the month after the quarter when you crossed the threshold; registration is generally due within 29 days after that day |
| You choose voluntary registration | You take on registrant duties even if not required yet |

Some organizations have different thresholds or rules, including charities and public service bodies. Non-residents, digital platform rules, and imported taxable supplies can also change the analysis.

## Taxi and commercial ride-sharing drivers

Self-employed taxi operators and commercial ride-sharing drivers have special GST/HST rules. CRA [taxi and commercial ride-sharing guidance](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-specific-situations/taxi-ride-sharing-drivers.html) says drivers who supply taxable commercial ride-sharing services are required to register for GST/HST and charge tax on fares, even if they are small suppliers.

This does not automatically make every delivery driver or platform worker subject to the same exception. Delivery, courier, rideshare, taxi, mixed platform work, and Québec QST facts can differ. Confirm your activity before assuming the small supplier threshold protects you.

## Registering for a GST/HST account

If you need to register, or you decide to register voluntarily, you generally need a business number and a GST/HST program account. CRA [GST/HST account registration](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-account/register-account.html) explains how to register online and what information you need.

Have these details ready:

- legal name, operating name, and contact details
- business number, if you already have one
- business structure and start date
- description of business activity and supplies
- fiscal year-end
- expected taxable supplies
- requested or assigned reporting period
- effective registration date

As of November 3, 2025, CRA says phone registration for a business number or CRA program account is no longer available. If online registration is not possible, follow the current CRA instructions for registering by mail.

## Charging and collecting GST/HST

Once registered, charge GST/HST on taxable supplies from the correct effective date. Show enough detail on invoices and receipts so the customer understands the tax charged and so your records support the return.

A practical invoice should usually show:

- supplier name and contact details
- invoice date and invoice number
- buyer name when required or useful
- description of goods or services
- subtotal before tax
- GST/HST rate and amount charged, or a statement that tax is included
- GST/HST registration number where required
- payment terms

Keep GST/HST collected separate in your books. It is not ordinary sales profit; it is tax you collect and later report.

## Filing GST/HST returns and remitting net tax

Your reporting period may be annual, quarterly, or monthly. CRA [reporting requirements and deadlines](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/file-gst-hst-return/reporting-requirements-deadlines.html) ties reporting period options to annual taxable supplies.

| Annual taxable supplies | Default reporting period | Election options |
| --- | --- | --- |
| $1,500,000 or less | Annual | Monthly or quarterly |
| More than $1,500,000 up to $6,000,000 | Quarterly | Monthly |
| More than $6,000,000 | Monthly | No annual or quarterly option |

Monthly and quarterly filers generally file and pay one month after the reporting period ends. Annual filers have different filing and payment timing, and annual filers with business income and a December 31 fiscal year-end can have an April 30 payment deadline and June 15 filing deadline. Annual filers may also need instalments when net tax thresholds are met.

## Input tax credits

Input tax credits, or ITCs, let registrants recover GST/HST paid or payable on eligible purchases and expenses related to commercial activities. The CRA's [input tax credit](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/calculate-prepare-report/input-tax-credit.html) guidance says ITCs can be claimed only to the extent purchases and expenses are for consumption, use, or supply in commercial activities.

You generally need all of these before claiming an ITC:

- you are a GST/HST registrant during the reporting period
- the property or service is for commercial activities
- GST/HST was paid or became payable
- you have sufficient documentary evidence before making the claim
- you claim within the time limit

Common eligible expense categories can include start-up costs, business-use-of-home expenses, delivery and freight, fuel, legal and accounting fees, maintenance and repairs, allowable meals and entertainment, motor vehicle expenses, office expenses, rent, telephone, utilities, and travel. Personal-use expenses, expenses for exempt supplies, and some capital property or restricted items may not qualify.

## Records you need for GST/HST

GST/HST records must support what you charged, what you collected, what you paid, and what you claimed. For ITCs, the required invoice details increase as the purchase amount rises. Depending on the amount and type of purchase, keep details such as supplier name, invoice date, amount paid or payable, GST/HST charged, supplier registration number, buyer name, description, and payment terms.

For vehicle or travel expenses, GST/HST support does not replace the business-use record. Keep receipts and kilometre records together. [CRA Mileage Log Requirements (Canada)](https://community.mycartracks.com/t/cra-mileage-log-requirements-canada/354) explains the trip record side of the file.

For retention periods, use [How Long to Keep Business Records (Canada)](https://community.mycartracks.com/t/how-long-to-keep-business-records-canada/407).

## Five-step GST/HST workflow

Use this workflow before tax time:

1. Classify your supplies as taxable, zero-rated, exempt, or outside scope.
2. Track taxable supplies by calendar quarter and the previous four consecutive quarters.
3. Register on time when required, or document why voluntary registration is or is not useful.
4. Charge the correct GST/HST rate from the effective date and keep invoice support.
5. File returns, remit net tax, claim supported ITCs, and save confirmations with the reporting period.

If your business is in Québec, add QST and Revenu Québec steps to the workflow.

## MyCarTracks workflow

GST/HST records and kilometre records answer different questions, but vehicle and travel costs often need both. [MyCarTracks automatic mileage tracking](https://www.mycartracks.com/products/automatic-mileage-tracking) can capture trips, help classify business and personal kilometres, and export vehicle reports to keep with the receipts and invoice details behind your GST/HST and income-tax files.

The app does not determine GST/HST registration, taxable-supply treatment, ITC eligibility, QST treatment, filing frequency, or net tax. It supports the trip-record and reporting side when vehicle expenses are part of the business file.

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## FAQ

### Does every small business in Canada need a GST/HST number?

No. Many businesses do not need to register while they remain small suppliers, but special rules apply to some activities, including taxi and commercial ride-sharing. Voluntary registration is also possible for some businesses.

### Is the $30,000 GST/HST threshold based on profit?

No. The general threshold is based on taxable supplies, not profit or taxable income.

### Do small businesses get GST/HST back?

GST/HST registrants may be able to claim input tax credits for GST/HST paid or payable on eligible purchases used in commercial activities. The purchase must be supported by documentary evidence and claimed within the time limit.

### How do I know which GST/HST rate to charge?

Start with the type of supply and the place of supply. The province or territory tied to the supply affects whether you charge 5% GST, 13% HST, 14% HST, or 15% HST. Québec can also involve QST.

### Do GST/HST returns replace income tax returns?

No. GST/HST returns report sales tax. Income tax returns report business income, expenses, profit, and other tax items. A business may have both workflows.

## What to read next

- [Self-Employed and Small Business Tax Guide (Canada)](https://community.mycartracks.com/t/self-employed-and-small-business-tax-guide-canada/410)
- [How Much Can a Small Business Make Before Paying Taxes? (Canada)](https://community.mycartracks.com/t/how-much-can-a-small-business-make-before-paying-taxes-canada/412)
- [Small Business Tax Rates (Canada)](https://community.mycartracks.com/t/small-business-tax-rates-canada/413)
- [Small Business Tax Deductions (Canada)](https://community.mycartracks.com/t/small-business-tax-deductions-canada/406)
- [How to Record and Manage Prepaid Expenses (Canada)](https://community.mycartracks.com/t/how-to-record-and-manage-prepaid-expenses-canada/408)
- [Tax Deadlines for Self-Employed People and Small Businesses (Canada)](https://community.mycartracks.com/t/tax-deadlines-for-self-employed-people-and-small-businesses-canada/409)
- [How Long to Keep Business Records (Canada)](https://community.mycartracks.com/t/how-long-to-keep-business-records-canada/407)

## Sources

- [CRA when to register for and start charging GST/HST](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/when-register-charge.html)
- [CRA register for a GST/HST account](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/gst-hst-account/register-account.html)
- [CRA GST/HST calculator and rates](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate/calculator.html)
- [CRA taxi and commercial ride-sharing GST/HST](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-specific-situations/taxi-ride-sharing-drivers.html)
- [CRA GST/HST reporting requirements and deadlines](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/file-gst-hst-return/reporting-requirements-deadlines.html)
- [CRA file a GST/HST return](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/file-gst-hst-return.html)
- [CRA input tax credits](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/calculate-prepare-report/input-tax-credit.html)
- [Revenu Québec GST/HST and QST](https://www.revenuquebec.ca/en/businesses/consumption-taxes/gsthst-and-qst/)

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