GST/HST: When to Register and How to File

Once your business revenue exceeds $30,000 in a single calendar quarter or over four consecutive quarters, you must register for a GST/HST account with CRA. But you can register voluntarily before that threshold, and it often makes sense to.

Why register early? If you're buying equipment, software, or supplies for your business, you're paying GST/HST on those purchases. Once registered, you can claim Input Tax Credits (ITCs) to get that money back. If you're spending more than you're earning in your early months, registration means a GST/HST refund.

To register, you need a business number from CRA. You can register online through CRA My Business Account, by phone, or by mailing form RC1. Online is fastest: you'll have your GST/HST account number within minutes.

Filing frequency depends on your revenue. Under $1.5M: annual filing. $1.5M to $6M: quarterly. Over $6M: monthly. Most freelancers file annually. Your return is due three months after your fiscal year-end.

The return itself is straightforward: report total GST/HST collected from clients, subtract total ITCs (GST/HST paid on business purchases), and remit the difference. If ITCs exceed collections, you get a refund.

norabooks tracks GST/HST collected on every invoice and paid on every expense automatically. At filing time, pull the tax summary report, and the numbers are ready to transfer to your CRA return.

Common mistakes: forgetting to charge HST to clients in your own province, not claiming ITCs on business purchases, and missing the filing deadline (penalties start at 1% of the amount owing plus 0.25% per month late).