GST/HST registration for a new corporation
This guide explains when a new corporation must register for GST/HST: the $30,000 small supplier threshold over four consecutive calendar quarters, the single-quarter rule, voluntary registration, filing frequency and the Quick Method. We prepare and file your articles of incorporation for $35.00, HST included. The government fee is separate and charged at cost: $200.00 to Corporations Canada, or $300.00 to the Ontario Business Registry. Open Corporation for $35 is a department of Gondaliya CPA.
The $30,000 small supplier threshold
GST/HST is the sales tax the federal government charges on most goods and services. A business that is registered charges it on its sales, sends it to the Canada Revenue Agency and claims back the tax it paid on its own costs.
A business does not have to register while it is a small supplier. You are a small supplier while your worldwide taxable sales, together with those of any associated businesses, are $30,000 or less in a single calendar quarter and over the last four consecutive calendar quarters.
Calendar quarters are fixed: January to March, April to June, July to September and October to December. They do not follow your corporation’s fiscal year.
| Test | When you stop being a small supplier |
|---|---|
| Single quarter | Your sales in one calendar quarter go over $30,000 |
| Four consecutive quarters | Your sales over the last four calendar quarters together go over $30,000 |
The threshold for public service bodies, such as charities and non-profits, is $50,000 rather than $30,000.
When you must register
The two tests start the clock differently. The difference matters, because one of them makes you charge tax on the very sale that takes you over.
Over $30,000 in a single quarter
You stop being a small supplier on the sale that takes you over $30,000. Your registration takes effect no later than that sale, and you must charge GST/HST on it.
Over $30,000 across four quarters
You stay a small supplier until the end of the month after the quarter in which you went over. You start charging tax on your first sale after that.
The Canada Revenue Agency’s own example: if the cutoff is the end of April 2025, you start collecting in May 2025.
In both cases you must register within 29 days of the first sale you make once you are no longer a small supplier.
| Situation | Effective date | Charge tax from |
|---|---|---|
| Over $30,000 in one quarter | No later than the sale that took you over | That sale |
| Over $30,000 across four quarters | No later than the first sale after the end of the month following the quarter | That first sale |
Tax you should have charged but did not is still owed. If you register late, the corporation pays it out of its own money unless it can recover it from customers.
We incorporate for $35.00, HST included
Government fee shown separately at cost. We tell you whether to register for GST/HST on day one.
Voluntary registration
A corporation below the threshold can register voluntarily. Many new corporations do, because registration is the only way to claim back the GST/HST paid on business costs.
The credits are called input tax credits. A consultant who buys a laptop, software and office space pays HST on each one. Registered, the corporation recovers that tax. Unregistered, it is a cost.
Registration also brings obligations. Once registered, the corporation must charge tax on its taxable sales, collect it and file returns, exactly like a business that had to register.
| Voluntary registration | What it means |
|---|---|
| You can claim input tax credits | Recover the GST/HST paid on business costs |
| You must charge GST/HST | On every taxable sale, from the registration date |
| You must file returns | Even for periods with no sales |
| Minimum period | A small supplier can cancel on request only after being registered for at least one year, unless it stops its commercial activities |
Voluntary registration suits a corporation that sells to other registered businesses, because they claim back the tax you charge. It suits a corporation selling to consumers less well, because the tax adds to their price.
Who must register whatever their sales
Some businesses cannot use the small supplier rule at all. They must register before their first sale, however small their income.
| Business | Rule |
|---|---|
| Taxi and limousine operators | Must register regardless of revenue |
| Commercial ride-sharing drivers | Must register regardless of revenue, since July 1, 2017 |
| Non-residents selling admissions to events in Canada | Must register before their first such sale |
A corporation that falls into one of these groups should register at the same time it receives its business number.
GST/HST rates by province
The rate you charge depends on where the sale is made, not where your corporation is. A corporation in Ontario selling to a customer in Nova Scotia generally charges the Nova Scotia rate.
| Province | Tax | Rate |
|---|---|---|
| Ontario | HST | 13 percent |
| New Brunswick, Newfoundland and Labrador, Prince Edward Island | HST | 15 percent |
| Nova Scotia, from April 1, 2025 | HST | 14 percent |
| Alberta, British Columbia, Manitoba, Quebec, Saskatchewan and the territories | GST | 5 percent |
British Columbia, Manitoba, Quebec and Saskatchewan also charge their own provincial sales tax, registered separately with each province.
Rates change by budget. These rates were last checked on 15 October 2026.
How to register
A corporation registers for GST/HST by adding a GST/HST program account to its business number. The business number is the nine-digit number the Canada Revenue Agency gives every business.
Since November 3, 2025, new business number and program account registrations are done online through Business Registration Online, reached from My Business Account. The Canada Revenue Agency no longer takes these registrations by phone.
The GST/HST account number has 15 characters: the nine-digit business number, the letters RT, and a four-digit reference number, for example 123456789 RT0001.
Our business number and CRA accounts guide explains each of the program accounts.
Filing frequency and deadlines
The Canada Revenue Agency sets how often you file from your annual taxable sales. A new corporation with sales of $1.5 million or less is an annual filer unless it chooses to file more often.
| Annual taxable sales | Assigned filing frequency | Option |
|---|---|---|
| $1.5 million or less | Annual | May choose monthly or quarterly |
| More than $1.5 million up to $6 million | Quarterly | May choose monthly |
| More than $6 million | Monthly | No option |
An annual filer that is a corporation files and pays within three months of its fiscal year end. A monthly or quarterly filer files and pays within one month of the end of each period.
An annual filer that owes enough tax may also have to pay quarterly instalments, due within one month after each fiscal quarter.
Filing quarterly or monthly by choice can help a corporation expecting refunds, such as one buying equipment, because the refund arrives sooner.
The corporation’s income tax return is separate. Our first T2 return guide explains that filing.
The Quick Method
The Quick Method is a simpler way for a small business to work out how much GST/HST to send. You still charge the full rate to customers, but you send a fixed percentage of your sales instead of tracking tax on most costs.
You can use it if your worldwide taxable sales, including those of associated businesses, are $400,000 or less, tax included, in any four consecutive fiscal quarters of the last five. You elect with form GST74.
Some businesses cannot use it, including those providing legal, accounting or actuarial services, bookkeeping, financial consulting, tax consulting or tax return preparation.
A business using the Quick Method also gets a 1 percent credit on its first $30,000 of eligible sales each fiscal year, if the election is in effect at the start of the year or from the date of registration.
| Item | Rule |
|---|---|
| Eligibility | Worldwide taxable sales of $400,000 or less, tax included |
| How to elect | Form GST74 |
| Excluded | Legal, accounting, actuarial, bookkeeping, financial consulting, tax consulting and tax preparation services |
| Extra credit | 1 percent on the first $30,000 of eligible sales each fiscal year |
The remittance rate depends on whether you mainly resell goods or provide services, and on the province. The current rates are in the Canada Revenue Agency guide RC4058.
Penalties apply to late returns: 1 percent of the amount owing plus 0.25 percent for each full month late, for up to 12 months. File a return on time even when you cannot pay.
What incorporating costs
GST/HST registration follows incorporation, and our fee to form the corporation is fixed. Government fees are charged at cost.
| Item | Amount | HST | Total | Who charges it |
|---|---|---|---|---|
| Our incorporation filing fee | $35.00 | Included | $35.00 | Open Corporation for $35 |
| Federal articles of incorporation | $200.00 | Not applicable | $200.00 | Corporations Canada |
| Ontario articles of incorporation | $300.00 | Not applicable | $300.00 | Ontario Business Registry |
Our $35.00 fee includes HST and government fees are passed through at cost with no mark-up. Every figure is on our full pricing page. Open Corporation for $35 is a department of Gondaliya CPA.
What a CPA checks on GST/HST registration
This guide explains the rules. Whether your corporation should register now, later or voluntarily depends on who your customers are and what you spend.
We start with your sales. We look at what you expect to bill in each calendar quarter and over the next four, and flag the quarter when you are likely to pass $30,000.
Then your customers. If they are businesses that claim input tax credits, registering early costs them nothing and lets you recover the tax on your own costs.
Then the method. We compare the regular method with the Quick Method for your type of business. The parent firm’s Quick Method calculator shows the difference.
Last, the filings. We register the account and set the filing frequency. If you think you may already have passed the threshold, the parent firm’s missed threshold calculator estimates what is owed. Open Corporation for $35 is a department of Gondaliya CPA.
Case studies
Three owners who asked us when to register for GST/HST, and what we did.
A consultant billing other businesses
The situation: A new consulting corporation expected about $20,000 of sales in its first year, all to businesses registered for GST/HST.
What we did: We explained voluntary registration and registered the corporation from the start, so it could claim back the HST on its laptop, software and office costs.
The result:
- Input tax credits claimed from day one
- No cost to its business clients
- Annual filing set up
A strong first quarter
The situation: A renovation company signed a large job in its second month and was set to bill over $30,000 in a single quarter.
What we did: We registered the corporation before the invoice was issued, so HST was charged on the sale that took it over the threshold.
The result:
- Registered before the big invoice
- HST charged correctly on that sale
- No tax to pay out of pocket later
Missed by a year
The situation: A cleaning company had passed $30,000 over four quarters without noticing and had not charged HST.
What we did: We worked out the date it should have registered, registered the account and prepared the returns for the missed periods.
The result:
- Filings brought up to date
- Tax owed calculated and planned for
- HST charged on every invoice from then on
Book a free consultation call
Not sure whether to register now or wait? Bring your sales estimate to a free call. Pick a time below and a Chartered Professional Accountant will call you.
Frequently asked questions
These are the questions owners ask about GST/HST registration. Each answer can be read on its own.
When does a corporation have to register for GST/HST?
Can I register for GST/HST before reaching $30,000?
Do I charge HST on the sale that takes me over $30,000?
What is the HST rate in Ontario?
How often does a new corporation file GST/HST returns?
What is the Quick Method?
How do I register for GST/HST?
What does it cost to incorporate?
The CPAs who review this guide
A Chartered Professional Accountant reviews your structure before anything is filed. Open Corporation for $35 is a department of Gondaliya CPA.
What our clients say
Gondaliya CPA Professional Corporation is registered with CPA Ontario under firm registration number 61330051. Our clients have left us 1,300+ five-star Google reviews, and we work from 13 Ontario offices, open 9:00 AM to 8:30 PM, Monday to Sunday. We back every filing with a 30-day money-back guarantee and a 60-day fee-matching policy, and we are a Xero Partner Award Winner 2026. Open Corporation for $35 is a department of Gondaliya CPA.
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Incorporate and register correctly the first time
Send the intake form and we will tell you whether to register for GST/HST, which method to use and when your first return is due. Our fee is $35.00, HST included, and the government fee is shown separately at cost. Payment is by Interac e-Transfer to info@gondaliyacpa.ca, and the security question is Not Applicable because auto-deposit is enabled.
No legal advice
Gondaliya CPA Professional Corporation is a firm of Chartered Professional Accountants licensed by CPA Ontario, firm registration number 61330051. It is not a law firm. We prepare and file corporate documents and we provide accounting and tax advice. Nothing on this page is legal advice, and reading it creates no solicitor and client relationship. For legal advice on a contract or a dispute with the Canada Revenue Agency, consult a lawyer licensed in your province.
Open Corporation for $35 is a department of Gondaliya CPA.
