Before you jump into the application process, the first and most important question to ask is: do I actually need a GST number yet?
For most new businesses in Canada, the answer hinges entirely on your revenue. It all comes down to the Canada Revenue Agency's (CRA) "small supplier" rule, which is the key deciding factor for almost every entrepreneur starting out.
Deciding whether to register for a GST/HST number isn't always black and white. For some, it's a legal must-do. For others, it's a smart financial move. Let's dig into what this really means for your business.
At the core of this decision is the small supplier rule. Put simply, you are required to register for GST/HST once your worldwide taxable revenue hits $30,000 in a single calendar quarter or over the last four consecutive calendar quarters.
This threshold is designed to give smaller operations a bit of a break, but once you cross it, the clock starts ticking.
That $30,000 limit can sneak up on you in a couple of different ways. Let’s say you’re a freelance graphic designer:
Scenario 1: The Big Project. You land a massive contract and bill over $30,000 between January and March. The moment you make that sale that tips you over the edge, you stop being a small supplier. You need to register for GST/HST right away.
Scenario 2: Slow and Steady Growth. Your business grows consistently. By the end of the year, you look back at your last four quarters (the full calendar year) and see you've brought in $32,000. You now have 29 days to get registered.
It's absolutely critical to keep a close eye on your revenue. Missing these deadlines can lead to headaches and penalties from the CRA.
Key Takeaway: Mandatory registration isn't a choice—it's a legal requirement triggered by your revenue. If you fail to register on time, the CRA will expect you to pay the GST/HST you should have collected, which means it comes straight out of your pocket.
So, if you're making less than $30,000, you can just forget about it, right? Well, not so fast.
Many sharp entrepreneurs choose to register for a GST/HST number long before it's required. The single biggest reason is to claim Input Tax Credits (ITCs).
ITCs are a game-changer. They allow you to get a refund on the GST/HST you pay for your legitimate business expenses—everything from a new laptop and office supplies to software subscriptions and accounting fees. In short, the government gives you back the sales tax you paid on things you needed to run your business.
Think about it: you buy a new work computer for $2,000 plus 13% HST in Ontario ($260). As a GST registrant, you can claim that $260 back from the CRA as an ITC. Over a year, these credits can add up to thousands of dollars in savings, putting cash back into your business.
Before you can apply for a GST account, though, you first need a Business Number (BN), which acts as the master key for all your CRA program accounts. For a deeper dive, check out our guide on what a Business Number is and why it's so important.
Here’s a quick breakdown to help you decide which path is right for you.
Ultimately, whether you're forced to register or choose to do so voluntarily, understanding the rules is the first step toward managing your business finances like a pro.
Let's be honest: dealing with government paperwork isn't exactly the reason you started your business. When it comes to something as important as your GST/HST number, the process can feel intimidating. While the Canada Revenue Agency (CRA) provides ways to register, it often involves navigating different online portals, deciphering tax jargon, and double-checking that every last detail is perfect.
For busy entrepreneurs, there’s a much more straightforward path. Instead of getting bogged down in complex government forms or waiting on hold, you can use a service designed to handle all the heavy lifting for you.
As a business owner, your time is your most valuable asset. The government's registration process requires you to pull together a lot of specific information—your official Business Number (BN), incorporation details, accurate revenue projections, and your fiscal year-end, just to name a few. One small mistake can lead to delays or, even worse, compliance headaches later on.
This is exactly why we built StartRight. We take the confusion out of manual government filings and replace it with a simple, user-friendly experience that walks you through everything. Our platform asks straightforward questions in plain English, and then we take care of the official registration for you securely and affordably.
Here’s a look at the clear, simple experience we offer.
The interface is clean and gets straight to the point, showing you exactly how to incorporate and get the essential numbers you need—including your GST/HST account.
This streamlined approach removes the guesswork and administrative burden. You can get a critical business task done in minutes, not hours. We handle all the intricate details behind the scenes, making sure your application is accurate, complete, and submitted correctly the first time.
Deciding how to get your GST number isn't just about ticking a box; it's about getting it done right without losing focus on your business. While the government provides the tools to register, they aren’t always built for a first-time founder who needs a bit of guidance.
By automating the registration, StartRight turns a tedious administrative task into a simple, worry-free step. Our goal is to give you peace of mind so you can get back to what you do best: building and growing your business.
We bridge the gap between complex tax rules and the real-world needs of a modern business owner. The benefits are pretty clear:
Ultimately, registering for a GST number is a must-do for many Canadian businesses. The real choice is how you want to do it. You can attempt to navigate the maze of government portals on your own, or you can take a direct, simple path with a partner you can trust.
Choosing Start Right Now means you’re not just filing paperwork; you’re building a more reliable foundation for your business's finances, faster. We make sure this essential compliance task is handled professionally, so you can move forward with confidence.
A little prep work goes a long way. Trying to register for your GST/HST account without having all your information handy is a recipe for frustration and delay. But if you gather a few key details beforehand, the whole process becomes remarkably smooth.
Think of this as your pre-flight checklist. Having everything ready means a service like Start Right Now can get your registration filed quickly and correctly, so you can start collecting GST/HST and claiming those valuable Input Tax Credits (ITCs) without a hitch.
First things first, let's lock down the core details that tell the Canada Revenue Agency (CRA) who you are. These are the non-negotiables for any application.
Getting these fundamentals right from the start is the easiest way to avoid common errors that can stall your application.
Next, the CRA needs to know a bit about your operations. This isn't just red tape; it helps them understand your business and set up your filing and reporting schedule correctly.
Be ready with your primary physical business address and, if it's different, your mailing address. You’ll also need to provide a reliable phone number and email for the main contact person. This is how the CRA will get in touch if they have questions, so make sure it's accurate.
A Pro Tip From Experience: Double-check, then triple-check every single detail. We've seen applications get kicked back for the smallest typos in a business name or a postal code. The CRA's automated systems can be unforgiving. Using a professional service like Start Right Now ensures a second set of eyes validates everything for accuracy before it goes out the door.
Finally, you need to pinpoint two crucial dates. These aren't just for the paperwork; they directly define your tax obligations from the moment you're registered.
If you’re incorporated, it's also smart to have your articles of incorporation nearby. By pulling this information together ahead of time, you make the actual application process a breeze.
When it comes to your business taxes, timing is everything. The moment your revenue crosses the "small supplier" threshold, the clock starts ticking. Knowing exactly when to register and how to navigate Canada's patchwork of provincial sales taxes is non-negotiable for staying compliant.
The CRA is firm on its deadlines. Once your business makes over $30,000 in taxable sales—either within a single calendar quarter or across four consecutive quarters—you're no longer considered a small supplier. From the day you cross that line, you have exactly 29 days to register for a GST/HST number. Miss that window, and you could be facing steep penalties and back-dated interest on all the tax you should have been collecting.
This isn't a deadline you can afford to miss. Proactive financial tracking is key here.
Canada's sales tax system can be a bit of a head-scratcher for new business owners because it isn't one-size-fits-all. The tax you charge is dictated by where your customer is located, not where your business is. This "place of supply" rule is a common trip-up for entrepreneurs.
Here's how it breaks down:
Goods and Services Tax (GST): This is the 5% federal tax that applies everywhere. If you're doing business in provinces like Alberta, British Columbia, Manitoba, or Saskatchewan, you'll generally just charge the 5% GST.
Harmonized Sales Tax (HST): Five provinces—Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador—have bundled the federal GST with their provincial tax. This single, blended tax is called the HST. For a deeper dive, check out this guide to getting an HST number.
Let's look at a real-world example. Say you're a consultant based in Alberta (a GST-only province) providing services to a client in Ontario (an HST province). You must charge that client Ontario's 13% HST, not Alberta's 5% GST. It’s all about where the customer benefits from the service.
Just to keep things interesting, some provinces run their own sales tax systems completely separate from the federal one. This adds another layer of paperwork and compliance for businesses selling across the country.
Provincial Sales Tax (PST): Provinces like British Columbia, Saskatchewan, and Manitoba require businesses to register for and collect PST on top of the federal GST. This means a separate registration with the provincial tax authority is often needed.
Quebec Sales Tax (QST): Quebec has its own distinct system. Businesses operating there must register with Revenu Québec to collect QST, which is applied in addition to the federal GST.
This provincial patchwork is where things can get complicated fast. A simple e-commerce sale to a customer in another province can suddenly trigger a whole new set of tax obligations you weren't aware of.
This is where the value of a guided registration really shines. Instead of spending hours trying to decipher which provincial rules apply to your specific business model, you can ensure your GST/HST account is set up correctly from the start, accounting for any unique provincial obligations you might have.
You’ve got your GST number—congratulations! That’s a major milestone. But while it’s easy to think of this as the finish line, it’s really the starting pistol for a new set of financial routines for your business. Let’s walk through what you need to do now so you can handle your new obligations with confidence.
Essentially, your new life as a GST registrant boils down to two core activities: collecting tax on your sales and claiming back the tax you pay on your expenses. Getting this cycle right is the key to staying on the CRA’s good side and, just as importantly, improving your company's cash flow.
The most immediate change you'll make is to your invoicing. From your official registration date, you are legally required to charge GST/HST on all taxable sales you make in Canada. This isn't optional—it's now a fundamental part of doing business.
This means you’ll need to update your invoice template right away. Every invoice must now clearly show:
Think of yourself as a tax collector for the government now. The GST/HST you get from customers isn't your money; you're just holding it for safekeeping until it's time to send it to the CRA. A great pro-tip I always share with new business owners is to open a separate bank account just for the tax you collect. It keeps you from accidentally spending it and makes remittance time much less stressful.
This is where things get good. Registering for GST/HST unlocks a powerful financial tool for your business: the ability to claim Input Tax Credits, or ITCs.
With ITCs, you can recover the GST/HST you paid on your legitimate business purchases.
What does that cover? Pretty much anything you buy to run your company—a new laptop, software subscriptions, office supplies, marketing campaigns, even professional fees for your accountant or lawyer. All that tax you paid can now be claimed back, which directly lowers the amount you owe the CRA.
Here's a simple example. Let's say you collected $1,000 in GST from your sales in a reporting period. During that same time, you spent $300 in GST on business expenses. Instead of sending the full $1,000 to the government, you only remit the difference: $700. That $300 goes straight back to your bottom line.
Key Insight: Tracking your ITCs meticulously isn't just a compliance chore; it's a strategic cash-saving move. Every dollar of GST/HST you recover is a dollar you can reinvest in growing your business.
So, how often do you have to file a return and send in the tax you’ve collected? The CRA assigns you a reporting period based on your annual revenue, which keeps the process manageable.
Most new businesses will start out filing annually, meaning you only have to do one GST/HST return per year. It's a system built for scale. With over 2.5 million businesses registered for GST/HST in Canada, this tiered structure helps the CRA manage the flow of information efficiently. You can find more of the nitty-gritty details on business tax regulations on the CRA's official page.
Juggling these new responsibilities—from changing your invoices to preparing your first return—can feel a bit overwhelming at first. To make sure you’re optimizing your tax situation and staying compliant, working with professional tax and business services can be a smart move. And when you're ready to tackle that first filing, our guide on how to file your GST/HST tax return will walk you through it. Getting these processes right from day one is the best thing you can do for your business's long-term financial health.
Diving into business taxes for the first time can feel like learning a new language. When it comes to getting a GST/HST number, a lot of questions come up. It's a fundamental step, so getting it right is crucial. Let's walk through some of the most common things entrepreneurs ask when they're getting set up.
This is easily one of the most common points of confusion, but it’s actually pretty straightforward.
Think of your Business Number (BN) as your main government ID for your company. It's a unique nine-digit number, and it’s the root for all your accounts with the Canada Revenue Agency (CRA).
Your GST/HST number isn't a separate, brand-new number. It’s simply your BN with a specific program identifier tacked on at the end—usually "RT 0001". So, if your BN is 123456789, your GST number will look like this: 123456789 RT 0001. The BN is the core, and the GST account is just one of the programs linked to it.
The simple answer is no. You legally can't add a separate line for GST/HST on your invoices until you have your official registration number from the CRA.
But here's where it gets a bit tricky. Once your revenue hits that mandatory $30,000 threshold, you are required to collect the tax, even if you're still waiting for your number. In that awkward waiting period, the best practice is to include the tax amount in your total price. Make sure you tell your customers that the price is "GST/HST included."
As soon as your number arrives, you'll need to go back and issue proper invoices that show the tax broken out. This is exactly why getting registered quickly is so important.
Expert Insight: That gap between having to register and actually getting your number can create a real accounting headache. Using a service like Start Right Now closes that gap fast, making sure you get your number quickly so your invoicing stays clean and compliant right from the start.
Failing to register within 29 days of no longer being a "small supplier" can hit your wallet hard.
If you miss that deadline, the CRA can come back and charge you penalties, plus interest, on all the GST/HST you should have been collecting from your effective registration date. And here's the kicker: this is true even if you never actually charged the tax to your customers.
That means the entire tax bill comes straight out of your pocket. It’s a painful way to learn that timely registration isn't just a suggestion—it's essential for protecting your profits.
Nope. You only need one federal GST/HST number for your business, and it’s valid right across Canada. That single number works whether you're charging the 5% GST in Alberta or the 13% HST in Ontario.
What does change is the rate you charge. This depends on where your customer is located, which the CRA determines based on "place of supply" rules. So, while your number stays the same, you’ll need to adjust the tax rate on your invoices depending on the province.
It's also worth remembering that provinces with a separate Provincial Sales Tax (PST)—like British Columbia and Saskatchewan—or Quebec's QST have their own registration systems. If you do enough business in those provinces to meet their thresholds, you’ll need to register with them directly.
Navigating tax registration is a critical first step, but it doesn't have to be a complicated one. Start Right Now eliminates the guesswork by managing the entire process for you, ensuring your business is set up for compliance and success from the very beginning. Ready to get your business set up the right way? Visit Start Right Now to get started in minutes.
