Ontario business guide

GST/HST for Ontario Small Businesses: Registering, Charging and Filing

Know when to register, what to charge and how to stay on top of your returns.

By PCBO Directory 9 min read

Most Ontario businesses deal with GST/HST sooner or later. A new consultant may pass the small supplier threshold within a year; a shop owner may register on day one to recover tax paid on equipment. Either way, once you are registered you are collecting tax on behalf of the government, and the Canada Revenue Agency (CRA) expects it to be charged, reported and paid on time. This guide explains the main rules for Ontario small businesses, the common mistakes and when an accountant can help.

1. Know which of your sales are taxable

GST/HST applies to most property and services supplied in Canada, but not all of them. The CRA groups supplies into three types in its guide to types of supply:

  • Taxable supplies are subject to GST/HST. The CRA lists accounting services, legal services, hotel accommodation, and clothing and footwear as examples.
  • Zero-rated supplies are taxable at 0%, so you do not collect tax on them. Examples include basic groceries, prescription drugs and exports. You may still be able to claim input tax credits on related costs.
  • Exempt supplies are not subject to GST/HST. Examples include music lessons, long-term residential rentals and most financial services. You generally cannot claim input tax credits on costs related to exempt supplies.

Before you think about registration, list what you sell and check where each item fits. If a product or service is unclear, ask your accountant or the CRA rather than guessing.

2. Check whether you are still a small supplier

Most businesses do not have to register while they are a small supplier. For most businesses the threshold is $30,000 of taxable supplies, measured in two ways described on the CRA’s when to register and start charging page:

  • Over four consecutive calendar quarters: if your total goes over $30,000, you are no longer a small supplier at the end of the month following the quarter in which you went over.
  • In a single calendar quarter: if you go over $30,000 within one quarter, you stop being a small supplier with that sale. You must start charging GST/HST on the supply that took you over the threshold.

The total is based on revenue before expenses from your worldwide taxable supplies and includes the supplies of associated businesses. Sales of capital property, financial services and goodwill are excluded. Public service bodies have a different threshold.

Some businesses must register regardless of size. The CRA says self-employed taxi and commercial ride-sharing drivers have to register even if they are small suppliers.

In the CRA’s example, a business must register within 29 days of its effective date of registration. Watch your running totals each quarter so the threshold does not catch you by surprise.

3. Register, or decide whether to register voluntarily

You can register for a GST/HST account online through Business Registration Online, which the CRA calls the fastest way to register. If you do not already have a business number, you receive one at the same time.

A small supplier that makes taxable sales in Canada can also register voluntarily. The CRA notes that registrants may be able to claim input tax credits on purchases and operating costs. Registration also brings obligations: you must charge, collect and remit GST/HST on taxable supplies and file returns regularly. You generally have to stay registered for at least one year before you can cancel, unless you stop your commercial activities.

Voluntary registration can suit a business with significant start-up purchases or business customers who are registrants themselves. It may be less attractive if most customers are consumers and you would rather not add tax to your prices. Run the numbers with an accountant before deciding.

4. Charge HST at the right rate

The CRA’s GST/HST rates table lists the HST rate for Ontario as 13%. Ontario has a single harmonized rate rather than separate federal and provincial sales taxes.

The rate depends on where the supply is made, not where your business is located. The CRA’s guide to which rate to charge gives the example of a Vancouver store charging 13% HST on furniture sold to a customer in Toronto because the place of supply is Ontario. If you sell to customers in other provinces, check the place of supply rules before setting up your invoices.

The CRA also says you must let customers know whether GST/HST applies and whether it is included in the price or added separately. Business customers who are registrants need certain details on your invoices to claim input tax credits. The CRA’s general guide for registrants sets out the information required at different invoice amounts; for sales of $100 or more, that includes your GST/HST registration number.

5. Claim input tax credits you are entitled to

Input tax credits, or ITCs, let registrants recover the GST/HST paid or payable on purchases and expenses used in their commercial activities. You must be registered during the reporting period in which the tax was paid or became payable, and you need supporting documents before you claim.

The CRA sets out a few limits worth knowing:

  • You cannot claim ITCs on purchases for personal consumption, use or enjoyment.
  • Membership fees for clubs whose main purpose is recreation, dining or sporting facilities are generally excluded.
  • Services supplied to you before you became a registrant do not qualify.
  • Supplier invoices need more detail as the amount rises, with the requirements changing at $100 and $500.

For most registrants, ITCs must be claimed by the due date of the return for the last reporting period that ends within four years after the period in which the credit could first have been claimed. Keep supplier invoices as you go so each claim can be supported.

6. Know your reporting period and filing deadlines

When you register, the CRA generally assigns an annual reporting period. Its general guide for registrants sets the assigned period by annual taxable supplies: annual for $1,500,000 or less, quarterly above that up to $6,000,000, and monthly above $6,000,000. Smaller businesses can choose to file monthly or quarterly instead.

The CRA’s reporting requirements and deadlines page explains when returns are due:

  • Monthly and quarterly filers: the return and payment are due one month after the end of the reporting period.
  • Most annual filers: due three months after the end of the fiscal year.
  • Individuals with business income and a December 31 fiscal year-end: the payment is due April 30 and the return is due June 15.

You must file a return for every reporting period, even when you had no sales or have no tax to remit; the CRA calls this a nil return. Most registrants must now file electronically, and the CRA charges a penalty for paper returns when electronic filing is required.

7. Remit what you collect and keep your records

GST/HST you collect is not business income. The CRA’s remitting page says you must remit the tax on any invoice included in your return, even if the customer has not paid you yet. You can pay online, in person at a Canadian financial institution or Canada Post retail location, or by mail. Annual filers may be required to pay instalments during the year.

Late payments attract interest, and a late return with a balance owing can attract a late-filing penalty based on the amount owed and the number of months the return is overdue. A separate account for tax collected can make it easier to have the money ready when the return is due.

The CRA’s records guidance says to keep sales and purchase invoices and other records that support your returns. Records generally have to be kept for six years from the end of the year to which they relate. If you file electronically, keep your working copies of each return as well.

8. Common GST/HST mistakes to avoid

Many GST/HST problems come from everyday habits rather than unusual situations. Check your own process against this list:

  • Missing the threshold: not tracking taxable sales each quarter and noticing too late that you are no longer a small supplier.
  • Charging the wrong rate: applying 13% to every sale without checking the place of supply, or charging tax on a supply that is exempt.
  • Spending the tax: treating collected HST as revenue and coming up short when the return is due.
  • Skipping nil returns: assuming no sales means no return.
  • Weak documentation: claiming input tax credits without invoices that show the information the CRA requires.
  • Mixing personal and business purchases: claiming credits on personal spending.
  • Ignoring CRA mail: a letter about a return or review is easier to deal with early than after a deadline has passed.

9. Know when to bring in an accountant

You can register and file simple returns yourself, but professional help can be useful when:

  • you are close to the small supplier threshold and unsure whether to register now;
  • you sell across provinces, export, or offer a mix of taxable, zero-rated and exempt supplies;
  • your records are behind, or you have returns you have not filed;
  • you are starting a new activity, buying a business or selling assets;
  • you have received a letter or review request from the CRA.

Before engaging an accountant, ask what is included in the fee, which records you need to provide, how documents are shared securely, who files the return and how you will be told about deadlines. Confirm the scope in writing and keep access to your own CRA account.

Sources & further reading

Sources checked on October 16, 2026.

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