Q: Should I keep my GST/HST number even though I earn well below the $30,000 threshold?

I registered for the GST/HST for self employment back when I was a full time performer. But have now I only do a few voice over gigs a year. I’m tired of the extra GST/HST filing, but I worry that I will have less of a leg to stand on as “reasonable expectation of income as an industry professional” to write off business expenses without it.

A: You don’t have to keep it, and you probably shouldn’t.

Closing Your GST/HST Account

So long as you’re registered for the GST/HST, even if your income drops below $30k, you must still charge it, remit it, and file returns. This obligation only ends when you close your GST/HST account, which you can request anytime after you complete at least one full year of registration. If your self-employment income is regularly below $30k and likely to stay there for the foreseeable future, I can’t think of a reason to stay registered.

Reasonable Expectation of Profit

No one at CRA uses GST/HST registration as a way to assess reasonable expectation of profit. Is there a market, however small, for what you do? Do you earn more money than you spend trying to make it? Are you likely to? If so, you have reasonable expectation of profit.

Writing off Expenses

This is such a common misconception that I feel the need to say it again: YOU DON’T NEED TO REGISTER FOR THE GST/HST TO WRITE OFF BUSINESS EXPENSES. You don’t need to do ANYTHING in order to write off expenses, other than earn freelance/self-employment income.

Check out my video about this here.

Just try not to show (too many) losses, and you’ll be fine.

Learn more about the GST/HST:

Five Things To Know Before Registering for the GST/HST

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

Help! I’m late registering for a GST/HST number!

Still confused? Get in touch!

If you’re considering registering for the GST/HST (or un-registering for it), contact us with your questions.