GST/HST: Are You Collecting It? Because CRA Definitely Notices!
Let's talk about the question we get more often than almost any other: "Do I have to charge GST?"
The answer is usually yes, but when and how often surprises people. So let's just walk through it.
The $30,000 Rule
In Canada, once your business earns $30,000 in taxable revenue over any four consecutive quarters, you are required to register for GST/HST. This is a cumulative threshold. It doesn't matter whether you hit it in your first quarter or your third, and it isn’t tied to your fiscal year end. The moment you cross $30,000 within that four-quarter window, the clock starts. You have 29 days from the date you exceeded the threshold to register with CRA and you must begin collecting GST/HST on any taxable sales made after that point.
Until you hit that threshold, you're considered a "small supplier" and registration is optional, though there are sometimes good reasons to register voluntarily even before you get there.
📌 The $30,000 threshold applies to your worldwide taxable supplies, not just your Canadian sales. If you're selling to clients outside Canada, those sales count toward your total.
What Happens If You Should Have Been Collecting and Weren't?
This is where things get uncomfortable. CRA can assess you for the GST/HST you should have collected, even if you never actually charged it to your clients. Meaning you could end up personally on the hook for tax that came out of your own revenue rather than theirs. That's a painful lesson.
The good news: if you come forward voluntarily before CRA comes to you, the Voluntary Disclosures Program (VDP) gives you a path to get back into compliance with reduced penalties and, in some cases, partial interest relief.
Don't Panic. It's Not That Scary to Fix
If you think you might have missed the registration window, the first step is to figure out where you actually stand. Pull your revenue numbers for the past four quarters, determine when you crossed the threshold, and get registered. Then you can address what's owed from there.
We help clients sort this out regularly. It's far less stressful than sitting on it and hoping CRA doesn't notice, and trust us, they're much better at noticing than they used to be.
Not sure where you stand? That's exactly the kind of question we're here to answer. Give us a call or book some time at openroadaccounting.ca.
📌 CRA's official GST/HST registration page: canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/account-register.html