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The $30,000 threshold, read the way the CRA reads it.

Everyone knows the number. What catches businesses is the window it is measured over, the two different ways of crossing it — each with its own start date — and the fact that tax can be owed on sales where it was never charged.

Updated August 2026 · Reviewed by the VertAcc accounting team · Ottawa, Canada

The small-supplier test

You are a small supplier — not required to register for or charge GST/HST — while your total taxable revenues stay at $30,000 or less across four consecutive calendar quarters. It is a rolling four-quarter window, not a calendar year, and it counts worldwide taxable revenues including zero-rated sales, across you and your associates.

The two ways of crossing, and their different clocks

1. One big quarter

Exceed $30,000 within a single calendar quarter and you stop being a small supplier immediately — effective on the sale that put you over. That sale, and everything after it, is taxable. You then generally have 29 days to register.

2. The slow accumulation

Cross $30,000 over four consecutive quarters (but not in any single one) and you keep small-supplier status until the end of the month following that quarter. Your registration takes effect no later than your first sale after that grace period ends.

The dangerous scenario is the invisible crossing: steady growth trips the rolling window mid-year, nobody notices, and a year later the CRA registers the business retroactively — owing 13% on months of Ontario sales where it was never charged. Books that are current catch the crossing the quarter it happens.

Why registering early is often the better trade

Registration under the threshold is voluntary — and frequently smart. Registered businesses recover the GST/HST they pay on expenses through input tax credits: on equipment, software, rent, professional fees. A startup spending heavily before revenue arrives is leaving refunds unclaimed every unregistered quarter. The trade is the admin of filing returns — which is only a burden when the books behind them are.

After registration: the discipline

GST/HST you collect is not revenue — it is the CRA’s money moving through your account. The businesses that get hurt are the ones that discover their HST balance at filing time, after the cash has been spent. Our clients’ returns are reconciled to the books and tracked to their deadlines, so the balance is a number you watch, not a surprise you meet. The same discipline applies to payroll’s trust money — covered in its own guide.

The short version of working with us

VertAcc is an Ottawa accounting firm that writes its own software. Bookkeeping, tax, payroll and year-end run on a fixed monthly fee — no hourly meter, calls never billable, and the accounting platform is included with setup done free. If your books are behind or a deadline on this page is already past, that is ordinary work for us, not a judgement.

FAQ

Asked about GST/HST

Is the $30,000 test per calendar year?

No — that is the most common misreading. The test is your total taxable revenues over any four consecutive calendar quarters (a rolling window), or within a single quarter. A business that billed $8,000 in each of the last four quarters has crossed $32,000 and must register, even though no calendar year ever showed $30,000.

I crossed the threshold months ago and never registered. Now what?

The CRA can register you retroactively to the day you ceased to be a small supplier — which means you owed GST/HST on sales from that day, whether or not you charged it. The practical fix is to register with the correct effective date, calculate what was collectible, and file. Input tax credits on your expenses from that period offset part of the bill. This is fixable, and earlier is cheaper.

What rate do I charge — 13%? 5%?

The rate follows where the supply is made, not where you are. Ontario customers are 13% HST; Alberta is 5% GST; other provinces vary between GST-only and their own HST rates. A business selling across provinces charges different rates to different customers on the same product — which is precisely the kind of thing books should handle automatically.

Once registered, how often do I file?

The CRA assigns an annual reporting period by default for smaller registrants, with quarterly and monthly required as revenues grow — and you can elect to file more often than required. Whatever the period, the return reconciles tax you collected against credits on what you paid, and the difference moves. Filing follows its own calendar, separate from income tax.

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