If you run a small business in Canada, GST/HST is one of the most important tax obligations to understand. Many new business owners make costly mistakes simply from lack of information. Here's everything you need to know.

Do You Need to Register?

You must register for GST/HST if your total taxable revenues exceed $30,000 in any single calendar quarter or in four consecutive quarters. This threshold includes revenues from all your associated businesses.

You should register voluntarily even below $30,000 if:

  • You have significant business expenses (you can claim Input Tax Credits to recover the GST/HST you paid)
  • Your clients are GST-registered businesses (they'll want to claim ITCs on your invoices)

You are a small supplier (exempt from mandatory registration) if you stay under $30,000. However, you cannot charge GST/HST or claim ITCs in this case.

What Rate Do You Charge?

The rate depends on the province of supply — generally where your customer receives the goods or services:

Province Rate Type
Alberta, BC, Saskatchewan, Manitoba 5% GST only
Ontario 13% HST
New Brunswick, Nova Scotia, PEI, Newfoundland 15% HST
Quebec 5% GST + 9.975% QST Separate rates
Northwest Territories, Nunavut, Yukon 5% GST only

Important: For services, the province of supply is where the client receives the benefit of the service — usually where they're located, not where you are.

Exempt vs. Zero-Rated Supplies

Not everything is taxable:

Exempt supplies (no GST/HST, no ITC):

  • Most health care services
  • Educational services
  • Long-term residential rentals
  • Financial services (lending, insurance)

Zero-rated supplies (0% GST/HST, but you can still claim ITCs):

  • Exports
  • Prescription drugs
  • Basic groceries
  • Medical devices

Claiming Input Tax Credits

ITCs are the GST/HST you paid on business expenses that you can recover when you file your return. Keep receipts for:

  • Rent and utilities (business portion)
  • Office supplies and equipment
  • Vehicle expenses (business use portion)
  • Professional fees
  • Software and subscriptions
  • Advertising

You cannot claim ITCs on:

  • Personal expenses
  • Meals and entertainment (only 50%)
  • Club memberships
  • Employee benefits

Filing Your GST/HST Return

Returns are filed with the CRA:

  • Annual filers: Due 3 months after your fiscal year-end (June 15 for calendar-year filers, with payment due April 30)
  • Quarterly filers: Due 1 month after the end of each quarter
  • Monthly filers: Due 1 month after each month-end

File online through CRA My Business Account, or use Acculyt AI's built-in NETFILE integration to file directly from your books.

The Quick Method

If your revenues are under $400,000, the Quick Method simplifies filing:

Instead of tracking every ITC, you remit a flat percentage of your total sales (including GST/HST):

  • Service businesses: 3.6% of gross sales
  • Businesses that supply goods: 1.8% of gross sales (for sales made in provinces with only 5% GST)

For example, if you invoice $10,000 + 5% GST = $10,500 as a service business, you remit 3.6% × $10,500 = $378 instead of $500 − ITCs. This is often much simpler and cheaper for service businesses with low expenses.

Acculyt AI automatically tracks all your GST/HST transactions and prepares your return with one click. Start free today.