Introduction
If you're running a small business or freelancing in Canada, one of the most common questions is:
“When do I need to register for GST/HST?”
The answer depends on your revenue — but also on your business goals.
The $30,000 Small Supplier Rule
In Canada, you must register for GST/HST once your business earns:
$30,000 in revenue over 12 months
This includes:
- Freelance income
- Side hustle revenue
- Business sales
Before that, you’re considered a small supplier.
What Happens If You Stay Under $30,000?
If you’re under the threshold:
- You do not have to charge GST/HST
- You do not need to register
- You keep things simpler
This is ideal for new freelancers, side hustles, and early-stage businesses.
When You MUST Register
You are required to register if:
- You exceed $30,000 in a 12-month period
- You expect to exceed it soon
- You run certain types of businesses (like ride-sharing)
Once registered:
- You must charge GST/HST
- You must file returns
- You must track taxes collected
Should You Register Early?
Sometimes — yes.
Even if you're under $30,000, registering early can help you:
- Claim input tax credits (ITCs) on expenses
- Look more professional to clients
- Prepare for growth
Example
You earn $20,000 but have $5,000 in business expenses.
Registering allows you to claim tax back on those expenses.
Common Mistakes
- Waiting too long to register
- Not tracking revenue properly
- Forgetting the $30k rule is rolling, not calendar-based
How Lunio Helps
Lunio helps you:
- Track revenue automatically
- Know when you’re approaching $30,000
- Apply correct GST/HST rates
- Stay compliant without stress
Final Thoughts
You don’t need to overcomplicate it.
Under $30k → optional
Over $30k → required
Understanding this early helps you avoid penalties and grow confidently.