Registering for GST or HST when you don’t have to

You may be aware that if your self-employment earnings are less than $30,000 in four consecutive calendar quarters (i.e., in a year’s time) you don’t have to register for the GST or HST.

However there are some situations where you might choose to register, even if you don’t have to.

Registering for the GST-HST because your industry requires it

Some industries, such as filmmaking, consulting for banks, or contractors (e.g. plumbers, electricians) require GST-HST registration for the individual to be considered for the funding, grant or job.

Registering for the GST-HST because you want to keep your revenue private

Canadian businesses earning over $30,000 per year must register for the GST-HST. That means not being registered can send a message to your potential clients that you’re a small supplier. That may be something you choose not to publicize.

Registering for the GST-HST because it makes financial sense

Along with the requirement to collect GST-HST on sales and remit returns to Canada Revenue Agency (CRA), GST-HST registration offers a money-saving benefit: the ability to claim back any GST-HST you spend on your business. It’s a mathematical fact that GST-HST registrants always end up with a little more in their pockets than their non-registered peers. In some cases, registration can even mean getting regular refunds of GST-HST – something non-registrants can never have.

Is it time for you to register for the GST-HST? Are you considering registering even if you technically don’t have to?

Download our free primer to learn everything you need to know about GST-HST registration in a small, jargon-free package.

About the Author: Personal Tax Advisors

Sunny Widerman has been preparing income tax returns for entrepreneurial Canadians and their friends since 2002. Her friendly, non-judgemental approach to tax services and advice and lively public speaking style have made her a favourite among audiences and clients alike. She has been featured by Advisor's Edge, the Canadian Media Guild, the Professional Writer's Association of Canada, the Editor's Association of Canada, CARFAC Dispatch and others.

2 Comments

Karan April 11, 2024 at 5:43 pm - Reply

I work full time but also do freelance on side which earned me less than 10K last year. I do have HST number and have charged client hst this past year. Do I still have to show /report the earnings from my freelance when I do my taxes even if it was less than 10K per year ? I have HST number because I use to do full time freelance and was making well over 30K per year.
- Personal Tax Advisors May 10, 2024 at 8:11 pm - Reply
  
  Hi Karan. Yes, you need to file and remit GST/HST for every period during which you still have an active GST/HST account. If your income has dropped below the threshold and you don’t think it’s coming back, you can choose to close your GST/HST account. You’ll need to file returns that cover all periods up to and including the date your account is closed, but after that you no longer have to charge, file returns for, or remit the GST/HST.