The GST small supplier threshold is still $30,000 of worldwide taxable sales, and no change to it has been announced for 2026. It is one of the most searched tax questions a growing business has: do I need to register for GST yet? The answer depends on two tests, not one, and on calendar quarters rather than your fiscal year.
The timing is live right now. If your sales over the last four calendar quarters went over $30,000 during the July to September 2026 quarter, you stopped being a small supplier at the end of October 31, 2026. From your first sale on or after November 1 you have to charge GST/HST, and you have 29 days to register.
What the rule is, when it applies, and who it affects
- The rule: A business is a "small supplier" and does not have to register for the GST/HST while its taxable sales, together with those of its associates, stay at or under $30,000. Public service bodies (charities, non-profits, municipalities, schools, hospitals) use a $50,000 threshold.
- Status in 2026: Unchanged. The $30,000 figure is set in section 148 of the Excise Tax Act and the CRA's current guidance still uses it. The federal budget is scheduled for November 5, 2026. Nothing has been proposed for the threshold so far, and we will update this page if that changes.
- Who it affects: Sole proprietors, partnerships and corporations close to the line, especially new or fast-growing businesses, side businesses and consultants billing a few large invoices.
- Who it does not apply to: Taxi businesses and commercial ride-share drivers must register from their first dollar of sales, whatever their revenue.
Sources: CRA: When to register for and start charging the GST/HST and CRA: GST/HST Memorandum 2-2, Small suppliers.
GST small supplier threshold: the numbers
| Rule | Amount or date |
|---|---|
| Small supplier threshold (most businesses) | $30,000 of worldwide taxable sales |
| Threshold for public service bodies | $50,000 of taxable sales |
| Alternative test for charities and public institutions | Gross revenue of $250,000 or less in the fiscal year (meeting either test is enough) |
| Periods tested | A single calendar quarter, and the last four calendar quarters together |
| Taxi and commercial ride-share drivers | No threshold: register from the first sale |
| Deadline to apply once you must register | Within 29 days of the effective date of registration |
| Voluntary registrants who want to cancel | Only after being registered for at least one full year |
Sources: CRA Memorandum 2-2, CRA: GST/HST Information for Charities (RC4082) and CRA: Close your GST/HST account.
The two tests, and when each one makes you register
The CRA applies two separate tests. Crossing either one ends small supplier status, but on different dates.
Test 1: over $30,000 in a single calendar quarter
If your taxable sales go over $30,000 within one calendar quarter, you stop being a small supplier immediately. You have to charge GST/HST on the sale that took you over the line, and your registration is effective no later than the day of that sale. You then have 29 days to register.
Example: A consultant bills $12,000 in October 2026 and $15,000 in early November. On November 20 they invoice another $8,000, bringing the October to December quarter to $35,000. That November 20 invoice has to include GST/HST. The effective date of registration is November 20, and the application is due within 29 days of it.
Test 2: over $30,000 across four consecutive calendar quarters
If no single quarter goes over $30,000 but your total for the last four calendar quarters does, you get a short grace period. You remain a small supplier until the end of the month following the quarter in which you crossed the line. Your registration is effective no later than the day of your first sale after that.
Example: A retailer's sales were $6,000, $7,000 and $8,000 in the first three quarters of the last four, and $10,000 in July to September 2026. The four-quarter total reaches $31,000 in the July to September quarter. The business stays a small supplier through October 31, 2026, must charge GST/HST from its first sale on or after November 1, and must apply within 29 days of that first sale.
What counts toward the $30,000, and what does not
The test is broader than many owners expect.
Included:
- Worldwide taxable sales, not just sales made in Canada.
- Zero-rated sales (for example basic groceries and most exports), even though they carry 0% tax.
- Sales made by your associates. Corporations and individuals that are associated with you are counted together, so splitting a business across two companies does not give each its own $30,000.
- Sales made through all your branches or divisions.
- Amounts invoiced or due in the period, not only amounts you have collected.
Excluded:
- Exempt supplies, such as most financial services and long-term residential rent.
- Sales of capital property, for example selling a vehicle or piece of equipment your business used.
- Goodwill from the sale of a business.
Source: CRA Memorandum 2-2, Small suppliers.
Edge cases
Calendar quarters, not fiscal quarters. The test always runs on January to March, April to June, July to September and October to December, whatever your corporation's year-end is.
Associated corporations. An owner with a holding company and two operating companies has to add up the taxable sales of the associated group. A new company that bills $20,000 can still be over the threshold on its first sale if its associates already are.
Charging tax before your number arrives. Once you are past the threshold, the tax is owed from the effective date even if the CRA has not issued your GST/HST number yet. A business that registers late can end up owing the tax it should have charged on sales it already made, out of its own pocket.
Voluntary registration. You can register before you reach $30,000. Registrants can claim input tax credits for the GST/HST they pay on business costs. Voluntary registration can usually be backdated up to 30 days before the request. The trade-off is that you must charge tax on your sales and cannot cancel for at least one year.
Stock and equipment you already hold. When a small supplier becomes a registrant, special rules let it recover the GST/HST already paid on inventory and capital property it holds for its commercial activities at that time.
Non-resident and digital sellers. Non-residents selling into Canada, including digital-economy businesses, have their own registration rules. The figures above are for businesses resident in Canada.
Provincial sales taxes are separate. The $30,000 test is only about the GST/HST. In British Columbia, Saskatchewan, Manitoba and Quebec, provincial sales tax has its own registration rules. For BC, see our BC PST registration guide.
Sources: CRA: General Information for GST/HST Registrants (RC4022) and CRA: GST/HST Memorandum 8-5, Becoming and ceasing to be a registrant.
What a growing business should do now
- Add up the last four calendar quarters today, including associated companies. If July to September 2026 took you over $30,000, the November 1 date applies to you.
- Watch the current quarter. A few large invoices in October to December can trip the single-quarter test mid-month, and the sale that crosses the line has to carry tax.
- Update your invoices and pricing before you start charging GST/HST, so customers are not surprised.
- Decide whether to register voluntarily. If most of your customers are GST/HST registrants who can claim the tax back, registering early mostly lets you recover the tax on your own costs.
- Set up the bookkeeping: a GST/HST payable account, input tax credit tracking and a reporting period. Our GST/HST and PST guide for Canada covers how the returns work after registration.
Key takeaways
- The GST small supplier threshold is $30,000 of worldwide taxable sales, or $50,000 for public service bodies.
- There are two tests. Over $30,000 in one calendar quarter means charging tax on that very sale. Over $30,000 across four quarters gives you until the end of the following month.
- Register within 29 days of the effective date.
- Associates' sales and zero-rated sales count. Exempt supplies, capital property and goodwill do not.
- No change has been announced for 2026. We will update this page if the November 5, 2026 federal budget proposes one.
RN Canada helps owner-managed businesses get set up for the GST/HST and prepares their GST/HST and income tax returns, from offices in Edmonton and Vancouver and remotely across Canada. If you are near the threshold and want your four-quarter total checked, or want a view on registering voluntarily, our GST/HST and PST team can help.