Getting a Goods and Services Tax / Harmonized Sales Tax (GST/HST) number is a major milestone for any Canadian business. It’s a sign that you’re established and operating seriously. The smartest way to tackle this is to get it done right when you incorporate, especially through a service built for entrepreneurs like Start Right Now. This rolls two big tasks into one, setting you up to legally collect sales tax and claim back the taxes you've paid on expenses. It turns a chore into a real financial plus.
First things first: a GST/HST number isn't just some random set of digits. It's a specific tax account that gets attached to your main federal Business Number (BN). Think of your BN as your company’s main ID with the government. Under that umbrella, you'll have different program accounts for things like payroll or corporate income tax. The GST/HST account is the one that lets you handle sales tax, and you'll often see it with an "RT" at the end (for example, 123456789RT0001).
If this is all new to you, it's worth taking a moment to understand the structure of a Business Number and its accounts.
Getting registered is a non-negotiable part of doing business properly in Canada. It gives you the authority to:
The Canada Revenue Agency (CRA) is responsible for managing the GST/HST registration process. While it's possible for business owners to interact with government portals directly, this can be a complex and time-consuming task. The forms require specific details about your business activities, structure, and revenue, and a single mistake or omission can cause significant delays. This can stop you from collecting tax or, just as importantly, claiming back those valuable ITCs.
Before diving deep into tax specifics, it helps to have a solid grasp on the bigger picture of how to start a small business in Canada.
Expert Tip: For new Canadian corporations, the most painless way to get a GST/HST number is to bundle it with your incorporation. This eliminates duplicate paperwork and ensures all your core business registrations are aligned and correct from the start.
This is exactly why a service like Start Right Now exists. Instead of you juggling multiple government applications, we merge your incorporation and GST/HST registration into one streamlined, automated process. Our user-friendly platform guides you through collecting the right information and ensures it's all filed correctly, saving you a ton of time and preventing common errors. You get to focus on actually launching your business, knowing your tax setup is handled properly from day one.
Knowing how to get a GST/HST number is one thing, but figuring out when you need to is just as important. The whole decision really boils down to one key concept in Canadian tax law: the "small supplier" threshold.
The magic number you need to remember is $30,000. If your worldwide taxable revenues—before you deduct any expenses—top this amount in a single calendar quarter or over the last four consecutive quarters, you've officially outgrown the "small supplier" status. At this point, registering for a GST/HST number is no longer optional; it's mandatory.
And this isn't just a rule for big corporations. It applies to everyone in business, whether you're a sole proprietor, in a partnership, or running an incorporated company. Getting the timing wrong can be costly, potentially leading to penalties and a hefty bill for back-dated taxes from the Canada Revenue Agency (CRA).
Let's make this real. Say you're a freelance graphic designer who kicked things off in January. Here’s how your first year's revenue shakes out:
If you add that up, you’ll see your total revenue for those four quarters is $32,000. The moment you made the sale that pushed you over the $30,000 mark, the clock started ticking. You officially have 29 days from that point to get registered, and you're required to start charging GST/HST on that very sale.
This $30,000 threshold has been a cornerstone of Canadian business tax since 1991, and it’s the same no matter which province you’re in. For a bit of perspective, CRA data from 2023 shows there are over 2.5 million active GST/HST registrants across the country. Ontario alone accounts for about 40% of that, which is roughly 1 million businesses. It’s also interesting to note that around 65% of new Canadian businesses register within their first year, and many of them do it long before they're required to.
What if your business is making less than $30,000? You can still register voluntarily, and honestly, it’s often a very smart move. The reason comes down to three powerful letters: ITC, or Input Tax Credits.
As soon as you’re registered, you can claim back the GST or HST you pay on your business expenses. Think about everything you buy to run your business:
By registering voluntarily, you essentially turn a portion of your operating costs into a tax refund. It's a fantastic way to improve your cash flow and put money back into growing your business.
For example, imagine you buy a new $2,000 laptop for your business in Ontario, where the HST is 13%. That's $260 in tax. If you're not registered, that $260 is just gone. But with a GST/HST number, you can claim that entire $260 back from the CRA as an Input Tax Credit. It might not sound like a lot on its own, but these credits add up fast and can easily save a new business thousands of dollars.
Deciding between waiting until it's mandatory or registering voluntarily can seem like a big decision. To help clarify the pros and cons, here’s a quick comparison.
Ultimately, choosing when to register is a key financial decision for your business. Whether you're crossing the mandatory threshold or see the strategic value in claiming ITCs early on, getting it right sets you up for success.
To get a deeper understanding of the specific criteria, especially regarding your obligations once registered, you might want to review these GST registration requirements.
So, you're ready to get your GST/HST number. Great. You’ve got two paths in front of you. One involves navigating the complexities of government portals, trying to piece together the rules and hoping you haven’t missed a critical detail. The other path is the one Start Right Now built for entrepreneurs who value their time—it's faster, simpler, and way less likely to end in a headache.
Going the traditional route means dealing directly with the Canada Revenue Agency (CRA). This process can be time-consuming and genuinely stressful for new business owners. One small typo or a misunderstood question can get your application kicked back, causing delays that stop you from operating professionally.
That kind of bureaucratic friction is exactly why we built Start Right Now. We know entrepreneurs need to move fast and with certainty, not get bogged down in confusing paperwork. We simplify, accelerate, and automate the entire process for you.
Honestly, the most efficient and reliable way to get your GST/HST number is to handle it at the same time you incorporate your business. This isn't just about making life easier. It's a strategic move that sets up your company's legal and tax foundations correctly from day one.
Instead of treating incorporation and tax registration as two separate chores, Start Right Now weaves them into one single, logical process. Our platform is designed to gather all the information needed for both at the same time. This integrated approach has some major perks:
This all-in-one method turns a complex, multi-step ordeal into a straightforward task you can knock out in minutes. To get a better handle on the BN itself, check out our guide on how to obtain a business number and why it's so fundamental.
Getting your GST/HST number through Start Right Now is about more than just saving a few hours. It’s about the peace of mind that comes from knowing your business is set up flawlessly from the start. Our platform acts as your expert guide, double-checking every detail before your application ever reaches a government desk.
We handle the back-and-forth with government agencies, translating their complex requirements into simple questions you can actually answer. You don't need to be a tax expert to get this right.
The Bottom Line: The goal isn't just getting a GST/HST number—it's getting it done right and getting it done fast so you can get back to what you do best. Integrating it with your incorporation is the most direct way to make that happen, cutting out the guesswork and preventing costly mistakes.
Our system is built to spot the common errors that can derail an application. Things like using the wrong business activity code or forgetting shareholder details are flagged and fixed upfront, paving the way for a smooth approval. That’s a level of proactive error-checking you just don't get when filing directly.
Let's say you're launching a new consulting firm. You need to incorporate to protect your personal assets, and you need to register for HST so you can invoice clients properly and claim back the tax you pay on expenses—like your software subscriptions or that new laptop.
The old way? You would first need to navigate the incorporation process. After that approval, you would then have to take all your new corporate info over to the CRA to apply for a Business Number, and then, in another step, request the GST/HST account.
With Start Right Now, it’s a whole different story. As you go through our simple, guided incorporation process, you'll see an option to add GST/HST registration. You just check the box and answer a couple of extra questions. That's it. We handle the entire sequence for you, delivering your incorporation documents, your BN, and your GST/HST number in one complete package. You’re ready for business.
Getting your GST/HST number is a huge first step, but the real work begins when you start invoicing. Canada's sales tax system isn't a simple, flat rate. It's a patchwork of different rates and rules that can change from one province to the next, which is a common stumbling block for new business owners.
It all boils down to knowing the three different systems at play across the country:
This distinction is critical for your pricing and bookkeeping. For example, if your company is based in Alberta but you sell an online course to someone in Nova Scotia, you have to charge them the Nova Scotia HST rate of 15%, not the 5% GST you're used to seeing locally.
The Golden Rule of Sales Tax: You charge the tax rate based on your customer's location (what the CRA calls the "place of supply"), not your own. Getting this wrong is a fast track to compliance headaches and a surprise tax bill from the CRA.
The way we do business has changed. We're no longer just selling to people down the street; we have clients across the country and around the world. This digital-first reality brings some unique tax situations into play.
Here are a few common scenarios I see all the time:
E-commerce and Digital Products: The rules for selling digital goods have tightened up. Since July 1, 2021, if you hit a $30,000 threshold in sales to Canadian consumers, you're required to register for and collect GST/HST. This single change was projected to bring over 20,000 new digital businesses into the tax system by 2024, highlighting just how seriously the CRA is taking online sales. You can dig deeper into these rules with these Canadian corporate tax summaries on taxsummaries.pwc.com.
Non-Resident Businesses: Thinking of starting a Canadian company from abroad? It might seem complicated, but it's very doable. Start Right Now provides a trusted, convenient solution for non-residents that bundles your Business Number and GST/HST registration together. Our streamlined process can get everything sorted within 24 hours of your business name approval, all without needing to hire a lawyer.
Consultants and Freelancers: If you're a service provider with clients in multiple provinces, you have to be vigilant. Forgetting to charge a client in New Brunswick the correct 15% HST can create a real mess in your books and leave you on the hook for the difference when it's time to file.
Whether you're shipping physical products, selling a subscription service, or offering professional advice, getting your GST/HST registration right from day one is non-negotiable. A small error during setup can easily snowball into a much bigger problem later.
This is where leaning on an expert platform like Start Right Now really pays off. It's not just about filling out forms; it's about a guided process that makes sure your business is registered correctly for your specific business model. We've designed our system to handle everything from a local retail shop to a global e-commerce brand, simplifying the complex tax landscape so you can focus on building your business.
Getting your GST/HST number is a big step, but it’s really just the beginning. Now, your business officially becomes a tax collector for the government. This ushers in a new set of ongoing responsibilities you need to manage to stay in good standing with the CRA.
Your core duties are pretty clear: you need to charge the right GST or HST rate on your sales, collect that tax from your customers, and then send it to the Canada Revenue Agency (CRA) according to your assigned schedule.
This is where being organized pays off. Keeping clean, accurate financial records isn't just a smart business habit—it's a legal must-have.
When you register, the CRA will give you a reporting period. This dictates how often you have to file a GST/HST return and pay the tax you’ve collected. It's almost always based on your annual revenue.
Most new small businesses fall into the annual filing category, which is great because it keeps things simpler while you're getting established. You can, however, choose to file more often if it helps you manage your cash flow better.
Think of your GST/HST return as simple math. You add up all the tax you collected from sales and then subtract the tax you paid on your business expenses (these are your Input Tax Credits). The final number is what you either owe the CRA or what they owe you back as a refund.
If you want to file an accurate return and claim every penny you’re entitled to in ITCs, you absolutely must keep detailed records. This means hanging on to every sales invoice you send out and every receipt for things you buy for the business.
Your records for each transaction should clearly spell out:
Without this paper trail, you could have your ITC claims denied if the CRA ever decides to audit you, which could lead to a painful tax bill. It’s a huge part of learning how to manage your GST/HST tax return obligations without any headaches.
Getting you registered is just the first step. We know that juggling tax compliance can feel like a lot for new entrepreneurs, which is why Start Right Now is more than just an incorporation service. We are your partner for the long haul.
Our platform is designed to support you through your entire business journey, giving you access to resources that make sense of financial management. We want you to feel confident handling your GST/HST account.
We will nail the foundational setup and provide the ongoing support you need, so you can pour your energy into what you do best: growing your business and chasing your vision.
Jumping into the world of business taxes can feel like learning a new language. Getting your GST/HST number is a massive step, and it's completely normal to have a ton of questions. Let's clear up some of the most common ones I hear from entrepreneurs.
This is usually the first thing people ask. If you attempt to register directly through government portals, the timeline can be unpredictable. A small error or missing piece of information on your application can drag the process on for weeks, leaving you unable to invoice properly. That kind of uncertainty can be a real drag on momentum.
The fastest and most reliable way to get it done is to bundle it with your incorporation. When you use a trusted service like Start Right Now, the tax registration is part of the package. We can often secure your GST/HST number in as little as one business day once your business name is approved. That means you can get down to business almost immediately.
You absolutely can. Sole proprietors and partnerships register for GST/HST numbers all the time without being incorporated. But it's worth thinking about the bigger picture.
Incorporating your business isn't just about paperwork; it's a strategic shield. It creates a separate legal entity, which protects your personal assets (like your house or car) from any business debts or lawsuits. It also opens up different tax planning opportunities and just looks more professional to clients and partners.
With Start Right Now, you don't have to treat these as separate, competing tasks. Our process is built to handle both your incorporation and your GST/HST registration in one go, setting your business on a solid, protected foundation from the start.
The Bottom Line: You can get a GST/HST number as a sole proprietor, but tying it into your incorporation is the smarter play for long-term protection and growth.
This is one area where you really don't want to drag your feet. The Canada Revenue Agency (CRA) takes the $30,000 small supplier threshold very seriously.
If you cross that line and fail to register, the CRA has the authority to go back and assess you for all the sales tax you should have been collecting from the day you were required to. That alone can be a huge bill.
But it doesn't stop there. On top of the back-owed taxes, they'll add hefty penalties and interest that grows over time. What might have been a manageable tax obligation can quickly spiral into a crippling debt. This is exactly the kind of costly mistake that a streamlined, expert setup process like the one offered by Start Right Now helps you avoid.
Registering for a GST/HST number requires some specific details about your business. Be prepared to provide:
Trying to pull all this together and input it correctly on government forms can be a real headache. One small mistake can cause delays.
The Start Right Now platform makes this part easy. Our guided workflow asks for this information in plain language as part of your incorporation. You won't have to hunt through confusing forms or second-guess what goes where. We make sure your application is complete and correct the first time around.
Ready to get this done right? Let Start Right Now take the complexity out of your incorporation and GST/HST registration. Get started today and launch your business with total confidence.
Not satisfied? Let us know within 60 days and we’ll refund your fee. Learn more.
