Look at taxable supplies, not profit

The small-supplier test generally looks at revenue from worldwide taxable supplies, including zero-rated supplies, made by you and your associates. It is not a test of net profit after expenses. Specific exclusions and rules apply. A business with low profit can still have registration obligations if its qualifying revenues exceed the threshold.

The timing of crossing the threshold matters

Exceeding $30,000 in a single calendar quarter can trigger different timing from exceeding it over four consecutive calendar quarters. The effective registration date and when you must begin charging tax depend on how the threshold was exceeded. Monitor sales as they occur rather than checking only when the annual income tax return is prepared.

Some businesses have special rules

Taxi and commercial ridesharing operators generally must register for GST/HST even when revenues are below the small-supplier threshold. Delivery-only activity should not automatically be treated the same way. Charities, public service bodies and other activities can have different requirements.

Plan for registration and recordkeeping

Voluntary registration may be possible for some small suppliers, but it brings responsibilities to collect, file and remit. Eligible input tax credits may be available with proper documentation. Review your customer locations, sales types and expenses before deciding. Keep invoices that show the required supplier and tax information.

Frequently asked question

Is the threshold based on my bank balance?

No. It generally measures qualifying taxable supplies using specific timing and association rules. Bank deposits and profit alone are not enough to determine registration.

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This guide is general information, not personalized tax or legal advice. Rules and administrative policies can change. Review current guidance at Canada Revenue Agency and get advice for your circumstances.