Q: I’m a plumber earning less than $30,000 per year. In order to bid on jobs I found I needed to have a GST-HST number, so I registered two years ago. But since then, I haven’t earned over $30,000 per year. Do I still have to charge GST-HST? Do I have to file returns?
A: Yes. Once you register for a GST-HST number, you must charge GST-HST on all your self-employment earnings when billing Canadian payers.
The $30,000 threshold is called the Small Supplier Threshold. If you earn less than $30,000 in four consecutive calendar quarters (i.e., in a year’s time), you fall below the threshold. Being below the threshold means you are not obliged to register for the GST-HST.
However, you can still choose to register, despite being a small supplier.
Obligations for GST-HST registrants
And once you register, regardless of your revenue or freelance earnings going forward, you take on all the obligations of being a GST/HST registrant:
- You must charge GST-HST to Canadian payers on all your self-employment income;
- You must remit to the government all the GST-HST you collect [less Input tax credits]; and
- You must file GST-HST returns regularly
So even though you didn’t have to register for the GST-HST and your earnings still fall below the small supplier threshold, having done so you must fulfill your obligations as a GST-HST registrant.
What if CRA sends you a bill?
If you fail to file returns and remit GST-HST, CRA will eventually contact you to demand those returns, or to demand a remittance based on a number they basically make up. Often the amount of GST-HST they request is too high. The only way to bring it down and to get out of trouble is to go back and file the required returns and remit the GST/HST calculated on those returns.
Not to worry. Personal Tax Advisors has helped countless Canadians file their overdue GST-HST returns, minimize the amount of GST-HST owing, and obtain an income tax refund in the process.
Contact us today to discuss how we can get you back on CRA’s good side.
I’m a new small business since Jan 2024 I pay my gst every 4 months but I did not make 30.000 do I got to submit the GST charge a total of $750 in GST for the first four months
All the GST/HST you collect is a tax you’re collecting on behalf of the government. CRA considers it to be money you hold in trust for them — it belongs to them, not you. So any GST/HST you collect does have to be remitted. And you also need to keep filing regular GST/HST returns for as long as you remain registered.
Do you need a gst hst number to charge gst?
Yes, you do.
Hi
I’m a small business supplier making less than $30k.
I was claiming Gsthst but
How do i stop claiming Gst/Hst
You need to close your GST/HST account. You can do it either by logging in to My Business, clicking on your GST/HST account, and clicking the link to close your account; or you can call CRA at 1-800-959-5525 and ask an agent to do it. There will be a specific date on which your account closes; remember that you need to bill/collect GST/HST on all your invoices up to that date, and you’ll need to file GST/HST returns for all periods during which your account was active, even if you didn’t bill anyone (you can file a nil return). You’ll need to file one last GST/HST return covering the period from January 1 to the date on which the account is closed. If that’s a bit overwhelming, please drop us a line and we can do it for you. Message us!
If I wait to register until the 30,000.00 mark can I still claim the Gst I paid on purchases?
Generally you can only claim back the ITCs on purchases made after your date of registration. If you have capital assets (computers, furniture, etc) that you purchased before you registered, you may be able to claim back partial ITCs based on how much value is still left in them at the time of registration. Hey! I should make a post/video about that. Grab a free copy of my GST-HST Primer and subscribe to my tax tips mailing list to know when I put it out 🙂
That’s what I figured thank you for the confirmation
If I earn $39000 as a self-employed, last year I had a non capital loss of ($14000). CANADA ON
I never had positive earning from this business only this year.
I think I do not have to register yet for HST. Am I right?
My question is: If I would not have a loss previously. Because registration required after $30 000. Would i have to charge and pay to the CRA for HST for the portion above the $30 000 only?
That would be $9000 in my case? or for the whole 39 000?
Thank you so much.
Tehnically, you should have registered for the GST/HST as soon as you charged your first dollar after $30,000. From that point forward, you would have charged GST/HST on sales. So yes, you would have charged GST/HST on only the $9,000. And then this year you’d be filing a GST/HST for your loss year, in which case you’d probably get a refund of GST/HST from the government. This is because if you have a loss, chances are you spent more GST/HST (which you can claim back) than you charged (and must remit).
Even if you’re late registering for the GST/HST, your obligations to charge and remit it only begin on the date of your GST/HST registration. So if you didn’t register last year when you should have and decide to register now, you do not have to go back and charge GST/HST on amounts you already billed. You’re not even allowed to, so don’t worry about it.
I have two very small business.
Let’s say one earns $35000, the other $10 000.
In this scenario, Do I have to pay HST on the business of less income, the $10 000, will the CRA would combine my income and see it as one business for $45000 for HST purpose?
Thank you for answering.
Hi there. Having over $30,000 in combined self-employment income means you’re obligated to register for the GST/HST. Once you’re registered, you must charge/remit it on all your freelance income. So in the scenario you’ve proposed you would register, and then start charging it on both businesses.
Hi,
if i have a small business which does not generate over 30k, BUT i work full time elsewhere, will I be required to pay HST on the income i earn from my small business?
No. Only self-employment or business income is included in the $30,000 small supplier threshold.
Good day.
, I have just started a small courier company on June 24 , 2025. I am retired so I plan to keep the business income under $30,000 per year. Do I have to collect GST? Do I need to open a GST account. I have tried to open a GST account but my Ontario Business licence has 10 digits because when I applied to register my business , I stated that my Business income would be under $30,000. When I applied for a GST Number it only accepts 9 digits as such I could not complete the GST application.
You do not have to register for the GST/HST if you are running a courier company earning less than $30,000 per year.
Hello.
I have a digital service. I have clients all over the world, but mostly, USA, Canada, UK. I made 60,000 last year on self-employment income. I signed up for a GST #, and have since been charging customers GST. However, I just learnt today (since my tax accountant never told me) that I do not need to charge gst tax for non-residents outside of Canada. And since most of my self-employment income came from USA, would I no longer qualify for GST?
The requirement to register, collect (where required), and file returns starts at CA$30,000 of worldwide income, even if none of your clients need to pay GST/HST. For example, you’re correct that you don’t have to charge GST/HST to any non-Canadian payer. But if your world self-employment income exceeds $30k/year, you have to stay registered and file returns anyway.