Canada GST/HST: When Small Suppliers Must Register and What to Put on an Invoice (2026)

Canada's GST/HST system confuses new freelancers and small business owners for one key reason: you do not collect it right away. Unlike countries where every VAT-registered business charges tax from day one, Canada has a 'small supplier' exemption that lets you operate without collecting GST or HST until your taxable revenues cross a threshold. Once you cross it, however, the obligation to register and collect kicks in fast -- within 29 days. This guide explains the rules, the tests, and what belongs on a Canadian invoice once you are registered.

The C$30,000 small supplier threshold

Under the CRA small suppliers rules, you are a small supplier -- and therefore not required to register for or collect GST/HST -- as long as your total taxable supplies do not exceed C$30,000 in any single calendar quarter and in the previous four consecutive calendar quarters. The threshold is C$30,000, not indexed for inflation. It has stayed at this level since 1991.

Once you cross C$30,000, you stop being a small supplier and must register for GST/HST. The obligation is strict: you must collect GST/HST on the supply that pushed you over the threshold, and you have 29 days from that supply to register with the CRA.

Two ways to cross the threshold

The CRA applies two separate tests, and you cross the threshold if either one is triggered:

• Single-quarter test: If your taxable revenues in a single calendar quarter exceed C$30,000, you are no longer a small supplier from the day that supply is made. You must collect GST/HST on that very supply and register within 29 days.
• Four-consecutive-quarter test: If your taxable revenues over any four consecutive calendar quarters (even if no single quarter exceeded C$30,000) total more than C$30,000, you stop being a small supplier on the day you make your first taxable supply after the four-quarter period ends.

Example: a freelance copywriter earns C$8,000 in Q1, C$7,500 in Q2, C$9,000 in Q3, and C$6,500 in Q4 -- a total of C$31,000 over the year. Even though no single quarter crossed C$30,000, the four-quarter total did. The copywriter stops being a small supplier at the start of the next quarter and must register.

What counts toward the threshold?

Only taxable supplies count -- these are supplies made in Canada at the standard rate (5% GST or HST at the applicable provincial rate) and zero-rated supplies (exported goods and services, basic groceries, prescription drugs). The following do not count toward the C$30,000:

• Exempt supplies (residential rent, most health care, basic educational services, financial services).
• Employment income (salary, wages -- even if you also run a business).
• Investment income (interest, dividends).
• Sale of capital property (for example, selling a business vehicle or equipment).

GST vs HST vs QST: provincial rates

Canada has a federal GST rate of 5%. Some provinces have combined theirs with the federal tax into a single Harmonized Sales Tax (HST). Others collect a separate provincial sales tax (PST) alongside the federal GST, and Quebec has its own Quebec Sales Tax (QST). What you charge depends on the province where your supply is made or where your customer is located (the 'place of supply' rules):

• Ontario, Prince Edward Island: HST 13%.
• Nova Scotia: HST 15%.
• New Brunswick, Newfoundland and Labrador: HST 15%.
• British Columbia, Saskatchewan, Manitoba: GST 5% + separate PST (6%, 6%, 7% respectively). You register for GST with the CRA and register separately for PST with the province.
• Alberta, Northwest Territories, Nunavut, Yukon: GST 5% only -- no provincial sales tax.
• Quebec: GST 5% + QST 9.975%. Register for both -- GST with CRA, QST with Revenu Quebec.

What to put on a Canadian GST/HST invoice

Once registered, CRA requires you to give clients a receipt or invoice that lets them claim their input tax credit (ITC). According to the CRA's GST/HST invoicing rules, a complete GST/HST invoice must include:

• Your business name (or trading name) and GST/HST registration number.
• The invoice date.
• The buyer's name or trading name (for invoices over C$150).
• A brief description of the goods or services.
• The total amount of GST/HST charged -- or a statement that the price includes GST/HST and the applicable rate.
• For invoices over C$150: the total before tax, the GST/HST rate for each item, and the total GST/HST charged.

For invoices under C$30 total, even simpler receipts are acceptable -- just the supplier name, date, and total with GST/HST noted. The detail requirements scale up with invoice size.

Exporting services: are they GST/HST-free?

If you are a Canadian supplier providing consulting, design, software, or other services to a client outside Canada, those services are generally zero-rated -- you do not charge GST/HST. The key condition is that the supply is made to a non-resident who is outside Canada when the service is performed. Zero-rated does not mean tax-free for you: you are still a GST/HST registrant, you file returns, and you can claim ITCs on your business expenses. It just means the rate on that export is 0%.

For a broader comparison of invoice requirements across the US, UK, Canada, and Australia, see the invoice requirements by country guide. The existing Canada invoice requirements post covers the general fields; this post focuses specifically on the GST/HST registration threshold and rate structure.