When to Register for and Start Charging the GST/HST — Montreal CPA Firm Near You: GST/HST Registration Thresholds, Small Supplier Rules, Effective Dates, Special Cases, and CRA Compliance

Every business owner in Canada must understand when to register for GST/HST, when to start charging it, and how the CRA determines your effective date of registration. Whether you’re a freelancer, consultant, landlord, corporation, ride-share driver, non-resident selling in Canada, or owner of an online store, GST/HST compliance is essential to avoid penalties, reassessments, and unexpected tax bills. This comprehensive Mackisen CPA guide explains who must register, who is exempt, how the $30,000 small supplier threshold works, how the CRA calculates effective dates, how selected listed financial institutions register, and how these rules apply to charities, public institutions, non-residents, and ride-share drivers.

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GST/HST Registration Modern Updates

As of June 17, 2024, individuals with a Social Insurance Number starting with “9”—typically temporary workers, international students, or individuals authorized to work temporarily—can now use Business Registration Online (BRO) to register instantly for a Business Number (BN) and GST/HST account. This modernizes access for newcomers and temporary residents engaging in taxable commercial activities.

Important administrative change: Business registration by phone is ending. Effective November 3, 2025, the CRA will no longer accept business number or program account registrations over the phone. All registrations will be completed through Business Registration Online (BRO) or through an authorized representative such as Mackisen CPA. This change highlights the importance of understanding online registration systems and compliance requirements.

Who Must Register for a GST/HST Account

You generally must register for GST/HST if both of the following apply:

You are not a small supplier, meaning your taxable revenues exceed the small supplier threshold.
You make taxable sales, leases, or other taxable supplies in Canada, unless your only taxable supplies relate to real property sold outside the normal course of business.

Taxable supplies include goods and services taxed at 5%, 13%, 15%, or zero-rated at 0%. Exempt supplies do not require GST/HST collection; therefore, businesses providing only exempt supplies generally cannot register.

Selected listed financial institutions (SLFIs) follow different registration rules when making reporting entity elections, consolidated filing elections, or tax adjustment transfer elections. These institutions must refer to GST/HST Notice 265 for specific requirements.

Understanding whether your supplies are taxable, exempt, or zero-rated is the first step toward compliance. Mackisen helps businesses evaluate their supply type, determine readiness for GST/HST registration, and plan for the financial impacts of tax collection.

You Cannot Register if You Provide Only Exempt Supplies

Exempt supplies include:

Residential rent
Most health, medical, and dental services
Childcare services
Financial services
Insurance products
Educational services under specific conditions
Music instruction by qualifying teachers

Businesses that provide only exempt supplies do not charge GST/HST, cannot register voluntarily, and cannot claim input tax credits (ITCs). If your operations mix taxable and exempt supplies, partial registration rules may apply.

The Small Supplier Rule — Most Businesses

Whether you must register depends on whether you are a “small supplier.” CRA defines a small supplier as a business with $30,000 or less in worldwide taxable revenues over the last four consecutive calendar quarters.

The CRA provides clear rules based on how and when the threshold is exceeded:

You Do NOT Exceed the $30,000 Threshold Over Four Consecutive Calendar Quarters

If your worldwide taxable revenues (before expenses) stay below $30,000:

You are a small supplier.
You do not have to register.
You may register voluntarily if you make taxable supplies in Canada.

Voluntary registration lets you claim input tax credits (ITCs) on business expenses, which can be beneficial for startups with high initial costs.

Your effective date of registration for voluntary registration is normally:

The day you request the GST/HST account, or
Up to 30 days before that date.

Mackisen advises clients when voluntary registration is strategically advantageous.

You Exceed the $30,000 Threshold in a Single Calendar Quarter

This is the most important scenario because it triggers immediate registration.

You are no longer a small supplier.
You must charge GST/HST on the supply that caused you to exceed $30,000.
You must register no later than the day of that supply.

For example, if you invoice a $15,000 service and that single invoice pushes you over $30,000, you must charge GST/HST on that exact invoice—even if you were not yet registered.

Your effective date of registration becomes:

The exact day of the supply that caused you to exceed the threshold.

Failure to charge GST/HST results in CRA requiring you to remit the tax from your own pocket.

You Exceed the $30,000 Threshold Over Four (or Fewer) Consecutive Quarters, But Not All at Once

In this case:

You are no longer a small supplier at the end of the month after the quarter in which you exceeded $30,000.
You must register for GST/HST.
Your effective registration date is the day of your first taxable supply after losing small supplier status.
You must begin charging GST/HST on that effective date.

This scenario commonly arises for growing service providers, consultants, and online sellers.

Special Notes and Revenue Calculations (Footnote 1)

For sole proprietors, CRA requires counting all revenues from all business activities worldwide, plus revenues from associated businesses. If associated at the beginning of the quarter, those revenues must be included.

Corporations and partnerships must include all revenues from worldwide taxable supplies and revenues of associated entities. Revenues excluded from threshold calculations include sales of financial services, capital property sales, and goodwill from business sales.

Understanding associated entity rules is essential. Mackisen reviews corporate structures to ensure correct threshold calculations and prevent misinterpretation.

Small Supplier Period Definitions (Footnote 2)

A calendar quarter is defined as:

January 1 to March 31
April 1 to June 30
July 1 to September 30
October 1 to December 31

Businesses must monitor their revenues consistently to avoid crossing thresholds unknowingly. CRA does not excuse businesses for failing to monitor their income; registration obligations arise automatically.

Special Cases

Although “Most Businesses” represent the primary category, several other groups must follow additional rules:

Charities and Public Institutions

Charities have a higher small supplier threshold of $50,000 in revenues or total taxable supplies. They may also qualify for public service body rebates. Because charities often mix exempt and taxable supplies, registration rules can become complex. Mackisen helps charities evaluate whether registration is beneficial.

Public Service Bodies

Public service bodies include non-profits, municipalities, universities, school authorities, and hospital authorities. Each may have unique threshold rules or rebate eligibility.

Non-Residents

Non-residents selling taxable supplies in Canada—digitally or physically—may have to register even with no Canadian physical presence, especially after new rules for digital services and Canadian e-commerce. CRA requires non-resident digital service providers to register under simplified GST/HST frameworks.

Taxi Operators and Commercial Ride-Share Drivers

All taxi and ride-share drivers must register and charge GST/HST from their first dollar. They are not considered small suppliers and must register immediately. This applies to Uber, Lyft, and all commercial ride providers.

Mackisen supports drivers by registering accounts, calculating remittances, and avoiding penalties.

Why Mackisen

With more than 35 years of combined CPA expertise, Mackisen CPA Montreal helps businesses determine when to register for GST/HST, how to charge GST/HST correctly, how to calculate taxable revenue for threshold purposes, and how to avoid CRA reassessments. Whether you need voluntary registration, mandatory registration, or special guidance for non-residents, charities, or ride-share drivers, Mackisen ensures compliance, optimization, and peace of mind.

If you want expert help registering for GST/HST, determining your threshold status, or planning your effective registration date, Mackisen ensures accuracy, financial clarity, and complete CRA compliance.