What the $30,000 threshold actually counts
It counts your gross business revenue, before any expenses, over four consecutive calendar quarters. That's a rolling 12-month window that moves across the whole year, so it never lines up neatly with your tax year.
Counts toward the $30,000:
- Gross revenue, before you subtract any expenses
- Taxable work billed to clients anywhere in the world, including zero-rated exports
- Revenue of any businesses associated with you
Does not count:
- The GST or QST you already collected
- Employment income (your T4 wages)
- Financial services and sales of capital property
When do you actually have to start charging?
It depends on how you cross the line. There are two cases, and they have different deadlines.
| Your situation | When you stop being a small supplier | What you do |
|---|---|---|
| You stay at or under $30,000 over four consecutive quarters | You stay a small supplier | Nothing required. Charging GST/HST stays optional. |
| You cross $30,000 in a single calendar quarter | Immediately, on the sale that put you over | Charge GST/HST on that sale. Register within 29 days. Your effective date is the day of that sale. |
| You cross $30,000 across four quarters, but not in one | End of the month after the quarter you crossed in | Register. Charge from your effective date, your first sale after you stop being a small supplier. |
The practical move is to keep a running total of your last four quarters. A single big quarter starts the clock on the sale itself. A slow climb gives you a little more runway.
Should you register early on purpose?
You can register before you hit $30,000, and sometimes it pays. Voluntary registration lets you claim input tax credits, so the GST/HST you paid on business costs like software, gear, and a share of your home office comes back to you. The trade-off is that you then charge tax on every invoice, file returns on a schedule, and your prices read a little higher to clients who can't reclaim the tax.
A rule of thumb: if you spend a lot to run your business, or you bill mostly GST-registered companies, voluntary registration often wins. If you're small and sell mostly to individuals, staying a small supplier keeps the admin light.
What if you're in Quebec (QST)?
Quebec runs a parallel QST system with the same $30,000 threshold, administered by Revenu Quebec, and you register for GST and QST together. The small-supplier math matches the federal rule: at or under $30,000 over a quarter or the four preceding quarters, registration is optional; above it, you register for both.
After you register: three habits that keep it painless
- Move the tax out of your spending money the day a client pays. It was never yours to spend.
- Record the GST/HST on each invoice as you send it, so what you owe is always a current number instead of a year-end reconstruction.
- Remit to the CRA (and Revenu Quebec in Quebec) on your filing schedule.
Loot adds the right GST/HST to each invoice and keeps a running total of what you have collected. Free to start.
FAQ
Does the $30,000 include income from a regular job? No. It counts revenue from your business's taxable supplies. Employment income (your T4 wages) does not count toward it.
Is the $30,000 based on profit or gross revenue? Gross revenue, before you subtract any expenses.
Do I charge GST/HST to clients outside Canada? Exports of services to a non-resident client are usually zero-rated, so you charge 0%. The sale still counts toward your $30,000 total, so keep including it.
What counts as a calendar quarter? A three-month block: January to March, April to June, July to September, and October to December.
How soon do I have to register after crossing the threshold? Within 29 days of your effective date of registration.
Sources
- CRA, "When to register for and start charging the GST/HST"
- CRA, "Small suppliers" (Memoranda 2-2)
- Revenu Quebec, "Details Concerning Small Suppliers"
This guide is general information to help you understand the rules. For your specific situation, check the CRA and Revenu Quebec pages above or talk to an accountant.