GST/HST for Canadian Small Businesses: Do You Need to Register?
Welcome to the official blog of Nunniyer Business. We are thrilled to launch this space as a resource for you—whether you're a small business owner, a freelancer, or an individual looking to navigate the complexities of tax season.
The $30,000 Rule: The Most Important Threshold
The main factor that determines if you must register for GST/HST is your business’s total annual revenue.
If your total revenue from taxable supplies (this includes most goods and services) exceeds $30,000 in a single calendar quarter or over the last four consecutive calendar quarters, you are considered a “GST/HST registrant” and must register.
This is not a suggestion—it’s a legal requirement. Once you hit that threshold, you must register within 29 days of the sale that put you over.
Can I Register Voluntarily?
Even if your business doesn’t hit the $30,000 threshold, you can choose to register voluntarily. There are some good reasons to do this:
Claiming Input Tax Credits (ITCs): By registering, you can claim back the GST/HST you paid on your business purchases and expenses. This can be a huge benefit, especially when you’re just starting out and have a lot of startup costs.
Appearing More Professional: Some businesses find that having a GST/HST number adds a layer of professionalism, making them appear more established to clients and suppliers.
What Happens If You Don’t Register on Time?
Failing to register for GST/HST when you are required to can lead to serious consequences. The CRA can charge you penalties and interest on the GST/HST you should have collected from your customers, which can quickly add up. They can also force you to retroactively register and collect the taxes you missed, which can be an uncomfortable conversation with your clients.
What’s the First Step?
The most important step is to consistently track your business’s revenue. Don’t wait until tax season to figure out where you stand. By keeping accurate and up-to-date records, you’ll know exactly when you’re approaching that $30,000 mark.
If you’re unsure whether you need to register, or if you want to explore the benefits of voluntary registration, don’t hesitate to reach out. Our team at Nunniyer Business can help you navigate this and other tax obligations, so you can focus on what you do best: running your business.
Do you have any questions about GST/HST or another tax issue for your Canadian business? Let us know in the comments below!