GST/HST Filing in Canada: What Small Business Owners Need to Know
If you run a small business in Canada, understanding GST/HST is not optional — it’s essential. Whether you’re a sole proprietor, partnership, or incorporated company, here’s what you need to know.
Do You Need to Register for GST/HST?
You must register for a GST/HST account if your total taxable revenues exceed $30,000 over four consecutive calendar quarters (or in a single quarter). This is known as the “small supplier threshold.”
Even if you’re below the threshold, you may want to voluntarily register — this allows you to claim Input Tax Credits (ITCs) on business expenses, which can save you money.
GST vs. HST vs. PST — What’s the Difference?
- GST (Goods and Services Tax): 5% federal tax, applies in Alberta, BC, Saskatchewan, Manitoba, and the territories
- HST (Harmonized Sales Tax): Combined federal + provincial tax (13-15%), applies in Ontario, Nova Scotia, New Brunswick, PEI, and Newfoundland
- PST (Provincial Sales Tax): Separate provincial tax in BC (7%), Saskatchewan (6%), and Manitoba (7%)
In British Columbia, you charge 5% GST + 7% PST on most goods and services.
Filing Frequencies
The CRA assigns your filing frequency based on your annual revenue:
| Annual Revenue | Filing Frequency |
|---|---|
| $1.5M or less | Annual |
| $1.5M to $6M | Quarterly |
| Over $6M | Monthly |
You can request more frequent filing if it benefits your cash flow (e.g., if you regularly receive refunds).
Common Mistakes to Avoid
1. Not Charging Tax When You Should
Some business owners forget to charge GST/HST on invoices. If you’re registered, you must charge it — even if you forget to add it to the invoice, the CRA considers it included in the price.
2. Missing Filing Deadlines
Late filings result in penalties and interest. Mark your calendar:
- Annual filers: 3 months after your fiscal year-end
- Quarterly/Monthly filers: 1 month after the reporting period
3. Not Claiming All Eligible ITCs
You can claim GST/HST back on legitimate business expenses — office supplies, software subscriptions, professional services, vehicle expenses, and more. Keep your receipts!
4. Mixing Up PST and GST
In BC, PST is collected and remitted to the provincial government separately from GST. They have different rules about what’s taxable. Don’t combine them.
How a Bookkeeper Helps
A professional bookkeeper:
- Tracks all taxable and exempt sales
- Calculates your GST/HST/PST accurately
- Files returns on time with the CRA and provincial authorities
- Maximizes your Input Tax Credits
- Keeps you audit-ready
Need Help with Your Tax Filings?
Green Turtle Cloud Bookkeeping handles GST/HST/PST filing for small businesses across Canada. Get in touch for a free consultation.
