GST/HST Small Supplier Threshold

On this page
  1. Count the right revenue
  2. Apply the two timing rules
  3. Do not use this page for every organization

For most businesses, the GST/HST small-supplier threshold is $30,000, not $75,000. It measures specified taxable-supply revenue, not profit or cash left after expenses. There are two timing tests, and they do not have the same effective date. CRA: when to register and charge

Count the right revenue

For a sole proprietor, CRA uses worldwide revenue before expenses from taxable supplies, including zero-rated supplies, from all businesses and associated persons. CRA excludes financial services, sales of capital property, and goodwill from the sale of a business. A calendar quarter begins January 1, April 1, July 1, or October 1. CRA threshold calculation

Apply the two timing rules

What happens Effective date and action
You exceed $30,000 in one calendar quarter You stop being a small supplier on the sale that crosses the limit. Your registration is effective no later than that sale, GST/HST applies from that point, and CRA says to register within 29 days of the effective date.
You exceed $30,000 over the previous four (or fewer) consecutive quarters, but not in one quarter You stop being a small supplier at the end of the month after the quarter of the excess. The effective date is no later than the first supply after that point; register within 29 days of that date.

Example: Four quarters of taxable revenue totalling $32,000 can trigger the second rule even though no one quarter exceeded $30,000. If the fourth quarter ends March 31, small-supplier status ends April 30; the first supply after that date drives the registration-effective date.

Do not use this page for every organization

Charities and public institutions have separate $250,000 gross-revenue and $50,000 taxable-supplies tests. Taxi operators and commercial ride-sharing drivers must register regardless of the ordinary small-supplier limit. A business making only exempt supplies generally cannot register. CRA: special small-supplier rules

Below the applicable threshold, a business making taxable supplies may choose voluntary registration, but that brings filing and collection duties. For the registration route after you determine the effective date, see GST/HST registration in Canada.