Once your self-employed income hits $30,000, GST/HST stops being optional. You’re required to register, start charging it on your invoices, and remit it to the CRA.
Miss this threshold and you could end up owing back-taxes plus interest on every invoice you should have been charging. The CRA doesn’t forgive this one easily.
Here’s what you need to know.
The $30,000 threshold and what “12 months” actually means
The rule is: once you earn $30,000 in revenue from self-employment in any single calendar quarter, or across four consecutive calendar quarters, you must register.
The four-quarter test trips people up. It’s not a calendar year. It’s a rolling window.
Example: You earned $8,000/quarter through 2025. By Q4, your trailing total hits $32,000. You’ve crossed the threshold, even though no single quarter hit $30,000.
The timing of when registration kicks in depends on how you crossed it. If you exceeded $30,000 in a single quarter, you’re required to register immediately (effective the day of the supply that crossed the line). If you crossed it gradually over four quarters, registration is required by the end of the month following that fourth quarter.
Either way, once you cross $30,000, you have 29 days to register. You’re also responsible for remitting any GST/HST you should have been collecting from the moment you crossed the threshold, even before you registered.
Should you register before you hit $30,000?
Yes, often. Once you’re registered, you can claim Input Tax Credits (ITCs), meaning you get back the GST/HST you paid on business expenses.
- A $1,695 laptop in Ontario includes $195 in HST. Registered, you get that back.
- Software subscriptions, phone bills, equipment, professional development: the GST/HST on all of it becomes recoverable. That includes accounting software like Accountly.
If you’re buying a lot of equipment when you’re starting out, voluntary early registration can save you real money. The tradeoff is admin overhead: you’ll need to charge GST/HST on invoices and file returns. For most people, voluntary registration starts making sense around $20,000–25,000 in annual revenue.
What rate do you charge?
It depends on the province of your client, not you. Full rates are on the CRA’s rate table, but here’s the summary:
| Province | Rate | Tax |
|---|---|---|
| Ontario | 13% | HST |
| New Brunswick, Newfoundland and Labrador, PEI | 15% | HST |
| Nova Scotia | 14% | HST (reduced from 15% on April 1, 2025) |
| BC, Manitoba, Saskatchewan | 5% | GST only (provinces collect PST separately) |
| Alberta, territories | 5% | GST only |
| Quebec | 5% GST + 9.975% QST | Collected separately |
If you work with clients across provinces, you charge the rate for their location, where the service is consumed, not where you’re based.
When you’re unsure, the safe default is to charge your client’s provincial rate. The CRA has guidance on “place of supply” rules if your situation is more complex.
How to register
The fastest way is online through the CRA’s Business Registration Online portal.
You’ll need:
- Your Social Insurance Number (SIN)
- Your business name (or your own name if operating as a sole proprietor)
- Your estimated annual revenue
- Your business start date
Once registered, you’ll receive a Business Number (BN) with a GST/HST account identifier (e.g., 123456789 RT0001). Put this on every invoice.
The whole process takes about 15 minutes. Your registration usually takes effect the same day, though the CRA may send a confirmation letter within a few weeks.
How to add GST/HST to your invoices
Simple. Add a line after your subtotal:
Services rendered: $2,000.00
HST (13%): $260.00
Total: $2,260.00
GST/HST #: 123456789 RT0001
Your registration number must appear on every invoice. Clients who are also GST/HST registrants need it to claim their own ITCs.
Filing and remitting
The CRA assigns you a filing frequency based on your annual revenue:
| Annual Revenue | Filing Frequency |
|---|---|
| Under $1.5M | Annually |
| $1.5M–$6M | Quarterly |
| Over $6M | Monthly |
Most freelancers file annually. If your fiscal year ends December 31 (the most common setup), your payment is due April 30 and your filing deadline is June 15. If your year ends on a different date, the return and final payment are due three months after your fiscal year end.
You remit the difference between what you collected and what you paid on business expenses (your ITCs). If you collected more than you paid, you owe the difference. If you paid more than you collected, you get a refund.
The Quick Method: a simpler option for small businesses
If your annual revenue is under $400,000, you can elect to use the Quick Method of accounting for GST/HST. Instead of tracking every ITC individually, you pay a flat remittance rate on your gross revenue.
For most service-based freelancers in Ontario, the Quick Method rate is 8.8% (vs. remitting the full 13% collected minus claimed ITCs). You also get a 1% credit on your first $30,000 of eligible supplies each year.
Example:
- You collected $13,000 HST on $100,000 in revenue
- Regular method: $13,000 collected – $2,000 in ITCs = $11,000 owing
- Quick Method: 8.8% × $113,000 (revenue including HST) = ~$9,944 owing
Quick Method usually means less to remit and far less paperwork. You can elect it when you file your first return, or switch in a later year. The tradeoff is you give up detailed ITC tracking, so if you have a lot of large business purchases, the regular method might save you more.
One important caveat: accountants, bookkeepers, lawyers, and financial consultants cannot use the Quick Method. If that’s your business, you’re on the regular method regardless.
The most common mistakes
Spending the GST/HST you collected. It’s not your money. The moment a client pays you $1,130 (including $130 HST), that $130 belongs to the CRA. Keep it in a separate account so you’re never tempted.
Missing the threshold. Track your trailing 12-month revenue, not just your calendar year. Set a reminder when you approach $25,000.
Not putting your BN on invoices. Clients who are registered businesses need your number to claim their ITCs. Missing it can lead to disputes or delayed payments.
Forgetting to file even if you owe nothing. If you’re registered, you must file a return every period, even if your net remittance is zero. Late filing triggers penalties.
If you’re trying to figure out how much to set aside for taxes overall (not just GST/HST), read our guide on how much Canadian freelancers should save for taxes.
Accountly tracks your income throughout the year and shows you when you’re approaching the $30,000 GST/HST threshold so you’re not caught off guard. It also keeps your business expenses organized so claiming ITCs at filing time takes minutes, not hours.
Frequently asked questions
When do I need to register for GST/HST in Canada? When your self-employment revenue exceeds $30,000 in any single quarter, or in four consecutive quarters (rolling 12 months). You have 29 days from crossing the threshold to register.
What happens if I don’t register for GST/HST when I should have? You’re still liable for the GST/HST you should have collected, plus interest and potential penalties. The CRA can assess this retroactively.
Can I register for GST/HST before hitting $30,000? Yes. Voluntary registration lets you claim Input Tax Credits on business expenses. It makes sense if you have significant startup costs or equipment purchases.
What is the difference between GST and HST? GST (Goods and Services Tax) is the federal 5% tax. HST (Harmonized Sales Tax) combines the federal GST with provincial sales tax in provinces that have harmonized: Ontario (13%), Nova Scotia (14%), New Brunswick (15%), Newfoundland (15%), PEI (15%).
How often do I file a GST/HST return? Most small freelancers file annually. The CRA sets your frequency based on revenue: under $1.5M is annual, $1.5M–$6M is quarterly, over $6M is monthly.
What is the Quick Method for GST/HST? A simplified way to calculate remittances for businesses under $400,000 in revenue. Instead of tracking individual ITCs, you pay a flat percentage of your gross revenue. For many service-based freelancers, it means less paperwork and sometimes less tax owing.
The information in this guide is for general informational purposes only and is not intended as accounting, tax, business, or legal advice. Accountly does not provide professional services or act as your accountant, tax advisor, or lawyer. No client relationship is created by your use of this material. Always seek advice from qualified professionals who understand your particular circumstances before acting on any information contained herein.
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