You're landing more clients, your invoices are adding up — and suddenly you realize you're getting close to $30,000 in revenue. Should you register for GST/HST now? What happens if you cross the line without registering?
The $30,000 threshold is one of the most misunderstood rules in Canadian freelancing. Miss it, and the CRA can come back and assess you for taxes you never even collected — out of your own pocket. Understand it, and you can plan your registration strategically.
Here's exactly what you need to know.
What Is the Small Supplier Rule?
Under the Excise Tax Act, you are a "small supplier" as long as your total worldwide taxable revenues stay under $30,000 over any four consecutive calendar quarters. Small suppliers are not required to register for GST/HST — and are not allowed to charge it.
The four quarters are rolling, not tied to the calendar year. The CRA looks at the last four completed calendar quarters at any point in time. For example, in October 2026, the CRA would look at Q4 2025 + Q1 2026 + Q2 2026 + Q3 2026.
Once your total taxable supplies in that rolling window exceed $30,000, you cease to be a small supplier. At that point, registration is mandatory.
What Counts Toward Your $30,000?
Not all revenue is equal. The threshold calculation includes:
- Taxable supplies — your standard freelance services (design, consulting, writing, photography, web development, etc.)
- Zero-rated supplies — exports and certain goods taxed at 0%. They still count toward your threshold even though no tax is collected.
The threshold does NOT include:
- Exempt supplies — residential rent, most health and dental services, financial services, and educational services. If your freelance work falls into an exempt category, it never triggers mandatory registration.
- Sale of capital property — selling business equipment or assets you own does not count.
For the vast majority of Canadian freelancers (designers, developers, writers, photographers, consultants, marketers), all of your revenue is taxable and counts toward the $30,000.
Two Ways You Can Cross the Threshold
The exact moment you must register — and start charging GST/HST — depends on how you cross the $30,000 line. The CRA has two different rules depending on the speed of crossing.
Scenario 1: You Cross $30,000 in a Single Quarter
If your taxable revenue in one calendar quarter alone exceeds $30,000, your small supplier status ends immediately — on the very transaction that pushed you over.
Example: You invoice a client $32,000 for a project in Q2. The moment that $32,000 invoice is issued, you are no longer a small supplier. You must register immediately and charge GST/HST on your next supply.
You have 29 days from that point to submit your registration application to the CRA through Business Registration Online (BRO).
Scenario 2: You Cross $30,000 Over Multiple Quarters
If your revenue accumulates gradually across quarters and the rolling four-quarter total crosses $30,000, the rules are slightly more generous. You remain a small supplier for the rest of that quarter plus the following month.
Example: Your four-quarter rolling total crosses $30,000 partway through Q2 (April–June). You stay a small supplier through June 30, plus all of July. On August 1, you must be registered and start charging GST/HST.
Either way, once registration is required, you must apply within 29 days of first making a taxable supply as a non-small-supplier.
How to Register for GST/HST
As of November 3, 2025, the CRA no longer accepts GST/HST registrations by phone. Registration is done exclusively online through Business Registration Online (BRO) at canada.ca. The process takes about 15 minutes.
You will need:
- Your Social Insurance Number (SIN) or Business Number (BN) if you already have one
- Your business start date and estimated annual revenue
- Your business address and contact information
- Your fiscal year end date
The CRA will assign you a 9-digit Business Number and a GST/HST program account. Your registration number will appear on every invoice you issue going forward.
What Happens If You Don't Register in Time?
Missing your registration deadline is a serious compliance issue. The consequences:
- Retroactive assessment — the CRA can go back to the date you were required to register and assess you for all GST/HST that should have been collected. You owe that tax even if you never collected it from your clients.
- Late registration penalty — 1% of the net tax owing per month you were late, up to 12 months.
- Interest — 7% annually (Q1–Q2 2026), compounded daily, on any unpaid balance.
If you realize you missed your registration date, do not wait for the CRA to find you. The Voluntary Disclosures Program (VDP) lets you come forward proactively and can significantly reduce or eliminate penalties — but only if you act before the CRA contacts you.
Should You Register Before Hitting $30,000?
You can register for GST/HST voluntarily, even if your revenue is well below $30,000. There is a legitimate financial reason to do so: Input Tax Credits (ITCs).
Once registered, you can claim back the GST/HST you paid on eligible business expenses — equipment, software subscriptions, home office costs, professional fees, and more.
Example: You're a freelance photographer in Ontario. You buy a $2,500 camera and pay 13% HST ($325). If you're registered, you claim that $325 back as an ITC. Unregistered, it's gone.
The trade-off: once you're registered, you must charge GST/HST on all your taxable supplies — which can create pricing friction with clients who are individuals (not businesses). If most of your clients are businesses (who claim ITCs themselves), voluntary registration is almost always worth it.
What Happens After You Register?
Which Rate Do You Charge?
The rate depends on your client's province of residence (the "place of supply"), not yours. Key rates for 2026:
- Ontario — 13% HST
- Quebec — 5% GST (+ 9.975% QST billed separately)
- British Columbia — 5% GST (+ 7% PST, but PST is not your responsibility to collect for most services)
- Alberta — 5% GST only (no provincial sales tax)
- Nova Scotia, New Brunswick, PEI, Newfoundland — 15% HST
Not sure which rate applies to a specific client? Use the Paymavo Tax Calculator — enter the amount and province to get the exact GST/HST amount instantly.
How Often Do You File?
Most freelancers start on an annual reporting period, since they're under $1.5M in revenue. Your GST/HST return is due 3 months after your fiscal year end.
Important exception: if your net tax owing for the year exceeds $3,000, the CRA requires you to make quarterly instalment payments in the following year — even if you file annually. Instalments are due April 30, July 31, October 31, and January 31.
The safest approach: set aside the GST/HST you collect in a separate account and don't touch it. It's not your money — it's the government's, and you're collecting it on their behalf.
Track Your Revenue Automatically with Paymavo
Knowing when you're approaching $30,000 requires tracking your revenue carefully. Paymavo makes this automatic.
- Every invoice you create is tracked against your annual and rolling revenue
- GST/HST is calculated automatically for the correct province based on your client's location
- Your invoice includes your GST/HST registration number once you're registered
- Free plan covers unlimited invoices — no credit card required
👉 Create your free Paymavo account — always free, no credit card. Be ready before you hit $30,000.
