Do you need one yet?
Only once you're past the small-supplier limit, or if you choose to register early. If your taxable revenue stays at or under 30,000 dollars over four consecutive calendar quarters, you're a small supplier and you don't have to register (the full rule is in our guide on charging GST/HST under 30,000 dollars).
Two things change that. If you go over 30,000 dollars in a single calendar quarter, you're a registrant from the sale that pushed you over, and you charge GST/HST on that sale. And you can register voluntarily at any point, which some freelancers do so they can claim back the GST/HST they pay on business expenses.
How to register, step by step
The online route is the fastest, and you can do it yourself in one sitting:
- Sign in with a CRA account, or create one if you don't have it yet.
- Open Business Registration Online and register as a sole proprietor. You can request your business number and your GST/HST account in the same session.
- Fill in your details (the checklist below has everything it asks for).
- Save or print the numbers before you close the page. They appear on screen at the end of the session, and the CRA won't mail them to you.
Can't use the online service? You can mail Form RC1, Request for a Business Number and Certain Program Accounts, to your tax centre instead. Questions along the way go to the CRA's business line at 1-800-959-5525.
What you get back
Two numbers that work as one. Your business number is nine digits and identifies you to the CRA. Your GST/HST account adds the letters RT and a four-digit account number to it:
123456789 RT 0001
The full version, with RT 0001, is your GST/HST registration number, and it's the one that goes on your invoices. You'll see it printed with and without the space before 0001. Same number either way. The bare nine digits on their own aren't enough for a client claiming their input tax credit. If you add another CRA program later, it hangs off the same nine digits with different letters.
The 29-day rule
Once you have to register, you have 29 days from your effective registration date to do it. Your effective date is set by when you crossed the line, so registering late doesn't move it:
- Over 30,000 dollars in a single quarter: your effective date is no later than the day of the sale that took you over.
- Over 30,000 dollars across four quarters: it's no later than the day of your first sale after you stop being a small supplier.
That's why timing matters. From the effective date on, the CRA expects GST/HST on your taxable sales, whether or not you remembered to charge your client for it. Register promptly and start adding the tax to invoices from that date, so it comes out of the client's payment and stays out of your own pocket.
If you're registering voluntarily, your effective date can be the day you make the request or up to 30 days before it.
What about Quebec?
If your business is physically located in Quebec, Revenu Québec administers the GST/HST, so you register with Revenu Québec (1-800-567-4692) and file on their forms. You'll also register for Quebec's own sales tax, the QST, and get a separate QST number ending in TQ0001. Both numbers go on your invoices; here's where.
The quick checklist
Have these ready before you start:
- Your Social Insurance Number
- Your legal name, plus an operating name if you use one, and your mailing and physical addresses
- A short description of your main business activity, with your main services and a rough percentage of revenue for each
- An estimate of your annual GST/HST taxable sales, worldwide and in Canada
- The effective date you're registering from
- Your fiscal year-end and the reporting period you want
Once the number is in hand, add it in Loot's settings once and it prints in the sender block of every invoice and quote you send, so it's never missing on the invoice that matters. Next step: where your GST/HST number goes on an invoice.
FAQ
How long does it take to get a GST/HST number? Online, it's immediate. Your business number and GST/HST account appear on screen at the end of your Business Registration Online session. Save or print them right then, because the CRA won't mail them to you. Registering by mail with Form RC1 takes longer.
Do I need a business name to get a GST/HST number? No. As a sole proprietor you can register under your own legal name. If you also use an operating name, you list it during registration, but it's optional.
Can I register for GST/HST before I make 30,000 dollars? Yes. Voluntary registration is open to anyone making taxable sales in Canada. Your effective date can be the day you request the account or up to 30 days before it. Once registered, you charge GST/HST on your taxable sales and can claim input tax credits.
Is my business number the same as my GST/HST number?
Not quite. Your business number is the nine digits. Your GST/HST number is those nine digits plus RT0001. Put the full GST/HST number on your invoices, since that's the version your client needs to claim their input tax credit.
I'm in Quebec. Do I register with the CRA?
No. If your business is physically located in Quebec, Revenu Québec administers the GST/HST, so you register with them and file on their forms. You'll also get a separate QST number ending in TQ0001.
This is general information and not tax advice. Checked against Canada Revenue Agency guidance. For your own situation, check with an accountant or the CRA.