Getting an HST number is a pivotal moment for most growing Canadian businesses. It's a sign you're on the right track, but it also marks a new level of financial responsibility. This isn't just a concern for big corporations—freelancers, e-commerce stores, and new startups all need to pay attention once they stop being considered a "small supplier" by the Canada Revenue Agency (CRA).
This is one of the first big questions every new entrepreneur in Canada asks, and the answer isn’t always black and white. It all comes down to a crucial concept: the "small supplier" threshold. For most new ventures, registering for GST/HST isn't necessary right out of the gate, but it becomes mandatory as your business grows.
The rule is straightforward: once your business brings in more than $30,000 in worldwide taxable revenues over any four consecutive calendar quarters, you're no longer a small supplier. At that point, you must register for, collect, and remit GST/HST.
It’s important to remember that this isn't about your profit. The CRA looks at your total revenue from taxable goods and services. A couple of real-world scenarios help illustrate how this works.
The Freelance Designer: Imagine you start a freelance graphic design business. For the first six months, you’re billing about $3,000 a month. Then, you land a huge contract worth $20,000. That single project pushes your revenue well over the $30,000 mark, and now you have to register for GST/HST.
The E-commerce Store: You launch an online shop selling handmade crafts. Sales start slow but pick up steam. In your third quarter, you check your numbers and realize your cumulative revenue just hit $31,500. The moment you crossed that line, the clock started ticking on your requirement to register.
Key Takeaway: The $30,000 rule is cumulative and applies to any 12-month period, not just a calendar year. Smart business owners keep a close eye on their revenue to see this requirement coming and prepare for it.
To make it even clearer, here’s a quick reference table.
As you can see, most businesses have some lead time, but others, like ride-sharing drivers, have to register immediately.
Let's clear up a common point of confusion for new founders. When we talk about an "HST number," what we're really talking about is a specific program account that gets attached to your main Business Number (BN).
Think of it this way: your BN is your business's primary ID with the government. The GST/HST account is a sub-account specifically for managing sales tax. This federal rule applies everywhere in Canada, covering everyone from freelancers to incorporated startups.
When you register, the CRA provides a 9-digit Business Number followed by an RT program identifier. The result looks something like this: 123456789RT0001. That full number is your official HST number. If this is still a bit fuzzy, our guide on what is a business number breaks it down further.
Instead of navigating complex government processes on your own, Start Right Now handles it for you. When you incorporate your business with us, you can simply add GST/HST registration to your package. We take care of all the CRA filings, making sure you’re compliant and ready for business without the administrative headache.
Most founders treat getting an HST number as just another box to check once they cross the mandatory $30,000 revenue threshold. But waiting until you have to register is a missed opportunity. Seeing this step as a strategic financial tool, rather than a chore, can give your business a serious edge right from the start.
Deciding to register for an HST number before you’re legally required to is one of the smartest things a new Canadian business can do. Why? The biggest reason comes down to two powerful words: Input Tax Credits (ITCs).
ITCs are your ticket to getting back the GST/HST you spend on legitimate business expenses. Think about it—the tax you pay on software, marketing, new equipment, or office supplies can be claimed back from the government. It's a direct boost to your bottom line.
Let's picture a new tech startup getting off the ground. Before they even land their first client, they're spending money to get set up.
Without an HST number, that $1,300 in tax is just gone—a sunk cost. But if the business is registered, they can claim those ITCs and get that money back. That’s cash that can be put right back into growing the business.
Registering for HST early turns your startup costs into recoverable assets. It’s a game-changer for keeping your cash flow healthy when every dollar counts.
Beyond the obvious financial perks, having an HST number makes your business look more professional. Larger clients, especially in the B2B world, often expect their suppliers to be HST-registered. It’s a standard part of their own accounting processes.
When your invoice has an HST number on it, you’re signaling that you’re a serious, properly structured business. It removes a potential barrier to landing bigger contracts and shows you’re ready to play in the big leagues. You’re building a solid foundation for growth instead of scrambling to get compliant later.
The easiest way to do this is to get it done right at the beginning. When you incorporate with Start Right Now, you can add HST registration directly to your package. We’ll take care of the paperwork with the CRA, so you can start claiming ITCs and building credibility from day one, without getting sidetracked by admin.
If you've ever looked into getting an HST number, you know the traditional options weren't exactly founder-friendly. The old path meant dealing directly with the Canada Revenue Agency (CRA), which can be an intimidating and slow process when you're just trying to get a business off the ground.
Manual methods, like wading through government portals or mailing in forms, are often clunky and disconnected. You can easily sink hours into figuring out the process, only to wonder if you did it right. It’s a classic administrative headache that steals time you should be spending on sales, marketing, or building your product.
There's a much better way. The modern approach is all about integration, speed, and accuracy, taking the guesswork completely out of the equation.
Historically, getting an HST number was a fragmented, multi-step marathon. First, you'd incorporate your business. Then, you'd wait for that to be finalized. After that, you'd get your Business Number (BN) and, finally, start a separate application process with the CRA for the HST account. It's a disjointed workflow that creates delays and unnecessary stress.
Start Right Now completely flips this script. We built our platform because we understand what modern founders actually need: simplicity and efficiency. We don't see incorporation and tax registration as separate chores; we bundle them into one seamless experience.
The Start Right Now Advantage: We don't just help you incorporate. We merge your federal and provincial registrations with all your essential CRA accounts—including your Business Number and your HST number—into a single, unified workflow.
This means you answer a few straightforward questions, and our system takes care of all the complicated backend filings. No more navigating confusing government websites or trying to decipher technical tax jargon.
We designed our process to be practically effortless. As you move through the steps of incorporating your business on our platform—whether it's a federal or provincial company in Ontario, Alberta, or British Columbia—we give you a simple choice.
When the option appears, just select that you want to add a GST/HST number to your registration package. That's it. Seriously.
From there, Start Right Now takes the wheel. Our automated system communicates directly with the necessary government registries and the CRA to file everything correctly on your behalf. We make sure every detail is spot-on, which is crucial for preventing compliance headaches down the road. For a deeper look at the specifics, you can learn more about how to apply for a GST number in our detailed guide.
This integrated approach gives you a massive advantage:
Ultimately, Start Right Now sets your business up for success by handling the foundational compliance work for you. That way, you can focus on what you actually love to do—building and growing your company.
The rules for getting an HST number aren't just for businesses with a physical Canadian address. With the boom in the digital economy, a whole new set of tax obligations has emerged for online businesses, software-as-a-service (SaaS) companies, and non-resident founders selling to Canadian customers.
If you’re running your business from outside of Canada, it’s easy to assume you’re off the hook for Canadian sales tax. That's a costly mistake. The reality is that Canada expects many international businesses to register for GST/HST once they hit the same $30,000 CAD sales threshold as any local company. This is a critical detail for founders in the US, Europe, or anywhere else who are building a Canadian customer base.
Let's put this into a real-world context. Imagine you run a successful US-based SaaS company. Your platform is picking up steam in Canada, especially with users in Ontario. As your revenue from Canadian subscribers grows, you'll eventually cross that $30,000 mark over a 12-month period. The moment that happens, your business is legally required to register for, collect, and send in the HST on all your Canadian sales. This applies even if you don't have a single employee or office in the country.
This isn't just a suggestion; it's the law. The timing for getting an HST number became much stricter when Canada updated its GST/HST rules for the digital and platform economy. Since July 1, 2021, non-resident vendors selling digital products or services to Canadian consumers must register once their Canadian sales exceed CAD $30,000 over any 12-month period. If you want to dig deeper into the specifics, you can discover more insights about Canada's digital economy tax rules.
This isn't just for SaaS companies, either. The need for an HST number is a huge deal for e-commerce sellers. If you’re a non-resident using a Canadian fulfillment centre, like those offered by Amazon FBA or Shopify, the CRA considers you to be "carrying on business" in Canada.
You’ll find these platforms will often demand a valid HST number before you can even get started. Why? Because the simple act of storing your inventory in a Canadian warehouse creates a significant business connection, triggering your GST/HST obligations from your very first sale.
Trying to figure out Canadian incorporation and tax registration from abroad can feel overwhelming. The paperwork, different provincial rules, and compliance requirements are a major roadblock for international founders hoping to tap into the Canadian market.
This is exactly where a service like Start Right Now becomes so valuable. We take the complexity out of the entire journey for non-resident entrepreneurs. Our platform lets you incorporate your business in Canada and get your Business Number and HST account in one streamlined, remote process. We handle the government filings so you can focus on growing your business in Canada, confident that you’re fully compliant from day one.
So, you've got your HST number. Congratulations! That's a huge step. But getting the number is really just the starting line. Now, you're officially part of Canada's tax system, which might sound a little daunting, but it's actually a straightforward process once you get the hang of it.
Think of it this way: your responsibilities boil down to two key activities. You’ll collect HST from your customers on your sales, and you’ll keep track of the HST you pay on your own business expenses. That's the core of it. While Start Right Now makes getting registered easy, knowing what comes next is what keeps your business compliant and financially sound.
Once you’re registered, your day-to-day operations will include a new rhythm of collecting, tracking, and eventually, remitting that sales tax. Good bookkeeping habits are no longer just a good idea—they're your best friend in making this entire process painless.
There are two concepts you'll want to get very familiar with:
Here's a simple way to look at it: You're acting as a temporary caretaker for the tax you collect. Your job is to figure out the difference between the tax you collected from customers and the tax you paid to your suppliers. You just send the difference to the CRA.
To make sure you never miss a potential claim, you’ll need a solid system. Learning how to organize receipts for tax purposes is a crucial skill that will save you a ton of headaches (and money) come filing time.
Getting the tax rate right is critical. The rate you charge depends entirely on the province or territory where the goods or services are delivered—what’s known as the “place of supply.”
This table breaks down the current rates you’ll need to apply to your sales across the country.
As you can see, five provinces have "harmonized" their provincial sales tax with the federal GST, creating the single HST rate. The rest just have the 5% GST. It’s your responsibility to know these rates and apply them correctly based on your customer’s location.
Every business with an HST number participates in a cycle of filing and remitting. You'll periodically report the GST/HST you've collected, subtract the ITCs you’ve racked up, and send the net amount to the CRA.
Failing to register when you're required to can lead to some painful consequences. If the CRA determines you should have registered after crossing the $30,000 small supplier threshold, they can go back and assess all the tax you should have collected since that point, plus interest. That's a financial hit no new business wants.
One of the best ways to manage all of this is to keep your business finances completely separate from your personal accounts. Our guide on how to open a business bank account walks you through setting one up.
By using a service like Start Right Now to handle your business registration and HST number from day one, you avoid these pitfalls and set yourself up for smart financial management right from the start.
Even with a clear plan, a few questions usually pop up when you're ready to get your HST number. It’s a big step for your business, and it’s smart to cover all your bases. Let's walk through some of the most common things founders ask us.
My goal here is to give you the confidence to move forward, knowing you’re making the right calls for your company's compliance and long-term health.
This is probably the most urgent question, especially if you have invoices to send or customers ready to pay. The timeline really depends on how you register.
If you go directly through the government's online portals or by mail, you might be waiting a bit. It can take several days or, in some cases, even a few weeks, particularly if the CRA has follow-up questions or there are processing backlogs. For a new business that needs to get moving, that kind of delay can feel like an eternity.
This is one of the main reasons we streamlined the process at Start Right Now. When you incorporate with us and opt to get your HST number at the same time, we bundle everything together. More often than not, you'll get your incorporation documents, your Business Number, and your HST account number all in one shot. We built our platform specifically to eliminate those frustrating waiting periods.
This is a scenario that keeps a lot of business owners up at night—realizing you've blown past the $30,000 small supplier threshold without registering. I can't stress this enough: ignoring this is not an option. The financial hit can be pretty significant.
If the CRA finds out you should have been registered, they will go back and assess you for all the GST/HST you should have collected from the day you were required to register. On top of that bill, they'll add penalties and interest. It can quickly turn into a massive, unexpected debt that can seriously hurt a young business.
Our Advice: Don't play catch-up. As soon as you see your revenue trending toward the threshold, get registered. It's far better to be prepared than to face a retroactive tax bill.
Registering for a GST/HST number directly with the CRA is technically free. But the fee isn't the only "cost" to consider. Your time is valuable. The real cost can be the hours you spend figuring out the forms, the risk of making a mistake that causes delays, and the general headache of dealing with one more piece of administrative work.
Using a service like Start Right Now is really an investment in getting it done right, right away. We take the entire filing process off your plate, making sure every detail is correct the first time. By bundling it with your incorporation, we make it a simple, affordable part of your business setup, so you can pour your energy into what you do best—running your company.
Ready to get your business set up for success without the administrative headaches? With Start Right Now, you can incorporate your company and get your HST number in one simple, fast, and automated process. Visit https://www.startrightnow.co to get started today.
Not satisfied? Let us know within 60 days and we’ll refund your fee. Learn more.
