First things first: do you actually need a GST number right now? It's a question I hear all the time. For a lot of Canadian businesses, the decision is made for them by their revenue. But for many others, especially those just starting out, it's a strategic choice.
It’s a common misconception that you only need to think about GST/HST once your business is "big" or profitable. The reality is that the Canada Revenue Agency (CRA) doesn't care about your longevity or profit margins—they care about your revenue. Staying on top of this is non-negotiable for staying compliant.
The magic number here is $30,000. This isn't just a simple annual target; it's a rolling threshold you need to keep a close eye on.
The moment your worldwide taxable revenues—that's the total income from goods and services that aren't tax-exempt—cross the $30,000 threshold, you are legally required to register for a GST/HST number.
The CRA looks at this in two ways:
This $30,000 threshold has been the standard for decades. Getting your GST/HST Program Account Number is what officially allows you to start collecting and remitting these taxes. It’s a good idea to read more about these registration thresholds directly from the CRA to fully grasp the details.
So, what if you're making less than $30,000? You don't have to register. But you absolutely can, and for many new businesses, it's a brilliant strategic move.
The biggest advantage is the ability to claim Input Tax Credits (ITCs). ITCs are your secret weapon for lowering costs. They let you get back the GST/HST you pay on your business expenses.
Think about all your startup costs: that new laptop, software subscriptions, office supplies, maybe even your accountant's fees. Without a GST number, the tax on those purchases is just gone—a sunk cost. With a GST number, you can claim it back from the government.
My Two Cents: Registering voluntarily can seriously improve your cash flow, especially when you're just getting started and every dollar counts. It essentially gives you a discount on every business purchase you make.
Let's say you spend $5,000 on equipment in Ontario, where the HST is 13%. That's $650 in tax. If you're registered, you can claim that $650 back as an ITC. It’s like getting a refund from the government just for running your business.
Deciding when to register is a key decision for any entrepreneur. To make it clearer, let's break down the pros and cons.
This table lays out the core differences to help you decide what's right for your business at this stage.
Ultimately, choosing to register voluntarily comes down to a simple calculation: will the ITCs you can claim outweigh the administrative work of collecting and filing GST/HST? For many, the answer is a resounding yes.
Once you’ve made your choice, the next hurdle is the registration process itself. While government portals exist, they can be slow and confusing. That’s why Start Right Now is the recommended solution. We handle all the paperwork and complexities, making the entire process smooth and fast so you can get back to building your business.
Before you dive into the registration process, taking a few minutes to get your business details in order will save you a massive headache later. Think of it like prepping your ingredients before you start to cook—it just makes everything go smoother.
From my experience, the number one reason government filings get delayed is simple: incomplete or incorrect information. Having everything organized and ready is the secret to a fast, painless registration, especially when using a trusted service like Start Right Now to handle the government forms on your behalf.
Everything in the world of Canadian business taxes starts with your nine-digit Business Number (BN). It’s your company’s main identifier with the federal government, and your GST/HST account is just one of several "program accounts" that can be attached to it. If you’ve already incorporated or registered a business name, you should have one.
Don't have a BN yet? No problem. When you incorporate with Start Right Now, we take care of getting your BN as part of the package. It's a seamless process where you get your incorporation documents and your new Business Number all at once. For a closer look, check out our guide on how to get a business number in Canada.
Next up, you’ll need the foundational details that officially define your business. These are non-negotiable and have to match your official registration or incorporation documents perfectly.
Getting these details right is critical. Mismatched names or an incorrect business structure are common red flags that can bring a registration to a screeching halt.
When you use Start Right Now, our platform walks you through this in plain English. We then make sure your information is formatted and filed correctly with the CRA, sidestepping those small errors that often cause big delays.
Finally, the CRA needs a few key pieces of financial and contact info to get your account set up correctly. This helps them figure out your filing obligations and ensures they can get in touch with you.
Here's what to have handy:
Once you’ve ticked off everything on this checklist, you’re good to go. Instead of wrestling with confusing government forms, you can just plug these details into the Start Right Now platform, and we’ll take it from there.
While it's possible to apply for a GST/HST number through government portals, many entrepreneurs find the process far from simple. You're often faced with confusing forms, dense tax jargon, and the very real risk that one small mistake could get your application delayed or rejected.
This is exactly why we created Start Right Now. We take that entire bureaucratic headache and turn it into a straightforward, fast, and completely digital experience. Our job is to handle the government paperwork so you can get back to what you do best—running your business.
For most business owners, the choice is clear. Using a service like ours isn't just about convenience; it's about making sure everything is done right the first time, giving you speed, accuracy, and peace of mind.
The first thing you’ll appreciate about Start Right Now is the clarity. We've replaced the government's complex forms with a simple, guided online process that just asks you questions.
Instead of trying to figure out what the CRA means by "fiscal period" or "taxable supplies," you’ll just answer plain-English questions about your business:
Our platform is designed to feel more like a conversation. It intelligently gathers the precise information the CRA needs, guiding you step-by-step so you never miss a critical detail. This approach takes all the guesswork out of the equation.
One of the biggest pitfalls of a DIY application is how easily a small error can cause a major delay. A typo in your business name, the wrong fiscal year-end, or a mismatched address can trigger a manual review that adds weeks to the process.
This is where we really stand out. At Start Right Now, every single application is reviewed by our team of experts before it's sent to the CRA. This human touch is the secret to our near-perfect filing success rate.
Our specialists are trained to catch common mistakes, including:
Think of this review as a critical safety net. We make sure your application is complete, accurate, and formatted exactly how the government systems need it, slashing the odds of rejection or delays.
Having a professional eye on your application isn't just about saving time—it's about preventing compliance headaches down the road. It's the smartest way to set your business up correctly from day one.
As a business owner, your time is money. Navigating government portals is slow, and any errors can leave you waiting for weeks. Start Right Now is built for speed.
Our system files your application securely and directly with the CRA. Because our submissions have already been checked for accuracy, they get processed much more quickly. Most of our clients get their GST/HST number in just a few business days—a fraction of the time it would take trying to do it on their own.
Getting your number fast is a real business advantage. It means you can:
Choosing Start Right Now is simply the most efficient path to getting your GST number. We handle the paperwork, the verification, and the submission, delivering the result you need so you can move forward with confidence.
If you're new to business in Canada, one of the first things you'll bump into is our sales tax system. It’s not the same everywhere. The tax you charge—and what you call it—all comes down to where you do business and where your customers are. Getting this right from the start is key to staying on the Canada Revenue Agency's (CRA) good side.
At its heart is the Goods and Services Tax (GST), a straightforward 5% federal tax that applies to most things sold in Canada. But that's just the baseline. From there, the provinces go their own way, creating three different systems you need to get familiar with.
It might seem complicated at first, but Canadian sales tax really just falls into one of three buckets.
GST Only: This is the simplest system. In Alberta and the territories (Yukon, Northwest Territories, and Nunavut), you only have to worry about charging the 5% federal GST. No provincial sales tax means your accounting is a whole lot easier.
GST + PST: In provinces like British Columbia, Saskatchewan, and Manitoba, you'll deal with a Provincial Sales Tax (PST) on top of the GST. This means you’re essentially managing two separate tax accounts—one for the 5% GST you send to the federal government, and another for the PST that goes to the provincial government. Quebec has a similar setup with its Quebec Sales Tax (QST).
HST Provinces: This is the "all-in-one" approach. Five provinces—Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador—use the Harmonized Sales Tax (HST).
The HST is exactly what it sounds like: a single, blended tax that combines the federal GST with the provincial portion. If you're based in an HST province, you only need one sales tax account. When you register for a GST number, it automatically doubles as your HST number.
For instance, a graphic designer in Ontario would charge a single 13% HST on their invoices. That 13% is made up of the 5% federal GST part and an 8% provincial part, but it’s all collected and sent to the CRA as one payment.
The whole point of the HST was to make life simpler for business owners. Instead of filing two different tax returns to two different governments, you just file one. It really does cut down on the administrative headaches.
The HST model has been around for a while. It kicked off in 1997 with Nova Scotia, New Brunswick, and Newfoundland and Labrador. The system grew when Ontario joined in 2010 with a 13% HST, and Prince Edward Island followed in 2013 with its 15% rate. Meanwhile, businesses in a place like British Columbia are still juggling a 5% GST and a 7% PST (for a combined 12%), which means separate paperwork for each.
The bottom line is that where your business is located determines which tax rules you follow. For a closer look at the HST registration process, check out our guide on getting an HST number.
It’s these provincial differences that often trip people up. The rules can feel tangled, and nobody wants to make a costly mistake. This is where Start Right Now is invaluable. Our platform automatically determines the correct tax system for your province and handles the registrations with the CRA, ensuring you're compliant from day one, no matter where in Canada you are.
Getting your GST/HST number isn't the finish line; it’s really just the starting gun. From the moment your registration is active, a new set of financial responsibilities kicks in. Nailing these from day one is the key to staying on the right side of the CRA and keeping your cash flow healthy.
The good news? It’s not as complicated as it sounds. Once you get the hang of it, your obligations boil down to three main activities: collecting the tax, claiming back the tax you paid, and reporting everything accurately.
The first thing you need to do is start charging GST/HST on all your taxable sales. This means updating your invoices right away to include the correct tax rate. Remember, the rate you charge depends on your customer's location—what the CRA calls the "place of supply."
For instance, if your business is based in Alberta (which has a 5% GST), but you’re selling to a client in Ontario, you have to charge them Ontario’s 13% HST. This isn't optional. As soon as your GST/HST registration is effective, you are legally required to collect this tax for the government.
Now for the good part. This is where GST registration starts to benefit your bottom line. Input Tax Credits (ITCs) let you recover the GST/HST you paid on your business expenses. This covers a huge range of things, from new laptops and software subscriptions to office rent and accounting fees.
Basically, the government doesn't want to tax your business inputs. By claiming ITCs, you subtract the tax you’ve paid from the tax you’ve collected, which directly lowers your net tax bill. It’s a powerful tool for reducing your operating costs.
The secret to maximizing your ITCs is meticulous record-keeping. Seriously, keep every single receipt and invoice for business purchases. You'll need them to back up your claims if the CRA ever comes knocking for an audit.
Your final core duty is to report all this activity to the Canada Revenue Agency (CRA) by filing a GST/HST return. On this return, you'll declare two main numbers:
The difference between these two figures is what matters. If you collected more than you paid, you send the difference to the CRA. If you paid more tax than you collected—which is pretty common for startups with a lot of initial costs—the CRA will actually send you a refund.
Getting your initial business setup right makes this whole process so much easier. When you use a service like Start Right Now for your incorporation and GST registration, we help structure everything for straightforward compliance from the get-go, setting you up for success down the road.
The CRA will assign you a reporting period, which determines how often you need to file. This schedule is almost always based on your annual revenue.
Most new businesses fall into the annual filing category, which is the simplest to manage. As your business grows, be prepared for your filing frequency to change. For a deeper dive into the mechanics of filing, check out our guide on how to prepare your GST/HST tax return for more practical steps.
Diving into the world of GST/HST for the first time can feel a bit overwhelming. I've seen countless new business owners make the same few mistakes, and while they're incredibly common, they can cause some serious headaches, from compliance issues to leaving money on the table. Knowing what these pitfalls are ahead of time is half the battle.
It helps to remember that the GST/HST system is a massive, data-driven operation for the government. The Canada Revenue Agency (CRA) tracks everything, from how many businesses are registered to the total tax collected, all broken down by industry. Realizing you're part of this highly organized system makes it clear why being accurate and on time is so important. If you're curious about the scale of it all, you can actually explore the official GST/HST statistics tables on Canada.ca.
This is, without a doubt, the biggest and most expensive mistake I see. Many entrepreneurs are so focused on growing their business that they don't even think about getting a GST number until their revenue has sailed right past the $30,000 threshold. The CRA's rules are strict: you have to register as soon as you stop being a "small supplier." If you don't, they can and will come back to you for the tax you should have collected, plus penalties and interest.
The rule is crystal clear: you are required to start charging GST/HST on the very sale that pushes you over that $30,000 limit. Waiting a few weeks—or months—to finally register puts you in a nasty spot where you owe the CRA tax you never actually collected from your clients.
It's always better to be proactive. Getting your GST number sorted out ahead of time with a service like Start Right Now means you're compliant from day one and won't have to worry about a surprise bill from the CRA down the road.
Another common trip-up is not understanding what actually counts toward that $30,000 limit. I've had clients who thought it was based on profit, or that the clock resets every January 1st. Neither is true.
The threshold is actually based on your total worldwide taxable revenue (not including exempt sales) over any four back-to-back calendar quarters. Think of it as a rolling 12-month window. This means you need to be looking at your last 12 months of revenue at the end of every single month.
The simplest way to avoid this is to keep a running tally. A basic spreadsheet that tracks your sales each month will show you when you're getting close, giving you a heads-up to register without a mad dash at the last minute.
Failing to claim all your eligible Input Tax Credits (ITCs) is literally giving away free money. Every time you pay GST/HST on a legitimate business expense—whether it's software, office supplies, or your accountant's fees—you're entitled to claim that tax back from the government.
But there's a catch: you need the receipts to prove it. The number one reason businesses miss out on thousands of dollars in ITCs is simply because their record-keeping is a mess.
Here are a few habits that will save you a ton of money:
When you register for GST/HST, the CRA will assign you a filing period—annually, quarterly, or monthly—based on your expected revenue. Most new businesses get put on an annual schedule, which sounds easy but can be a trap for your cash flow.
If you only file once a year, you're holding onto all the tax you've collected for months. It's incredibly tempting to dip into that money, treating it like your own. Then, a year later, you're hit with a massive tax bill you weren't prepared for. Filing quarterly, or even monthly, forces you to manage your cash flow better and avoids that painful end-of-year surprise.
Getting your GST/HST registration set up correctly from the very beginning is the surest way to prevent these common problems. Using a guided service like Start Right Now helps you navigate the process without errors, setting your business up for financial health and compliance right from the start.
Diving into the world of GST registration can feel a bit overwhelming, and it's natural to have questions. Over the years, we've helped countless Canadian entrepreneurs navigate this process, and a few questions pop up time and time again. Let's tackle them head-on.
This is probably the most common question we get, and the honest answer is: it depends. If you attempt to file directly with the government, even a tiny, seemingly insignificant error can flag your application for a manual review, stretching the process out for several weeks.
This is where a service like Start Right Now really makes a difference. We comb through your application to make sure it's accurate and complete before it's submitted. Thanks to our expert review and direct digital filing, most of our clients have their GST number in hand within just a few business days. It’s all about avoiding those frustrating, unnecessary delays.
Absolutely. In fact, for many new businesses, it's a brilliant strategic move. This is known as voluntary registration.
Why would you do this? The big advantage is claiming Input Tax Credits (ITCs) on all your startup expenses. Every dollar of GST/HST you spend on things like a new laptop, software subscriptions, or marketing services can be claimed back. Registering early means you get that tax refunded, which can be a huge help for your cash flow right when you need it most.
Nope, you just need one. Your single, federal GST/HST number works nationwide.
The key is to charge the correct tax rate based on where your customer is located, which is called the 'place of supply' rule. For instance, if your business is based in Alberta (which has a 5% GST), but you sell a service to a client in Ontario, you must charge them the 13% Ontario HST. Your one GST number handles all these provincial differences.
Think of your Business Number (BN) as your company's main phone number. Your GST/HST account is just a specific department—like an extension—added to it. It’s the one that ends with the letters 'RT' and a four-digit code, like 123456789 RT 0001.
Ready to get your GST number without the guesswork? With Start Right Now, you can handle the entire process online with expert support ensuring it's done right the first time. Let's get your business set up for success today.
