GST — Frequently Asked Questions
26 plain-language answers to the questions Canadian business owners ask RN Canada about GST.
As of 2026, the federal Goods and Services Tax (GST) rate is 5%, applied across Canada. In Alberta the total is just 5% with no PST; in BC it's 12% combined with 7% PST; HST provinces blend GST into a single rate. RN Canada's sales-tax calculator applies the correct rate by province.
As of 2026, you must register for GST once your worldwide taxable revenue exceeds $30,000 over four consecutive calendar quarters (the small-supplier threshold). You can also register voluntarily earlier to claim input tax credits. RN Canada handles GST registration and ongoing filing for new and growing businesses.
As of 2026, an input tax credit lets a GST-registered business recover the GST it pays on business purchases, offsetting the GST it collects on sales. Only the net is remitted. Accurate records are required to claim ITCs. RN Canada tracks ITCs in your bookkeeping so you never overpay GST.
As of 2026, GST filing frequency — monthly, quarterly, or annual — is based on your annual taxable revenue, with larger businesses filing more often. You can sometimes elect a different period. Late filing brings penalties and interest. RN Canada sets the right GST filing frequency and files on time for clients.
As of 2026, the GST Quick Method lets eligible small businesses remit a fixed percentage of GST-included sales instead of tracking every input tax credit, often saving money and time. Not all businesses qualify. RN Canada evaluates whether the Quick Method saves you tax and elects it where beneficial.
As of 2026, yes — you charge the GST or HST rate of the province where the customer receives the goods or service (place-of-supply rules). Selling into Ontario means 13% HST; into BC, 5% GST plus separate PST. RN Canada's sales-tax calculator applies the correct cross-province rate automatically.
As of 2026, GST is the 5% federal tax; HST is a single blended federal-provincial tax (e.g., 13% Ontario) collected by the CRA; PST is a separate provincial tax (7% in BC) administered provincially. Alberta has only GST. RN Canada handles all three correctly across provinces for clients.
As of 2026, most exports of goods and services from Canada are zero-rated, meaning you charge 0% GST but can still claim input tax credits on related purchases. Documentation proving export is required. RN Canada applies zero-rating correctly for exporters and ensures ITCs are recovered.
As of 2026, filing a GST return late triggers a penalty plus interest on any balance owing, and persistent lateness can prompt CRA demands. Even a nil return must be filed on time. RN Canada tracks GST deadlines and files for clients to avoid penalties and interest.
As of 2026, GST input tax credits on business meals are generally limited to 50%, matching the income-tax limit, and vehicle ITCs depend on business use and capital cost limits. Personal-use portions aren't claimable. RN Canada applies the correct ITC restrictions so meal and vehicle GST claims hold up to CRA review.
As of 2026, a small supplier is a business with $30,000 or less in worldwide taxable revenue over four consecutive quarters; it need not register for or charge GST. Once you cross $30,000 you must register. RN Canada monitors clients' revenue and registers them for GST at the right moment.
As of 2026, freelancers and independent contractors must register for and charge 5% GST once their taxable revenue exceeds $30,000 over four consecutive quarters. Below that they may register voluntarily to claim ITCs. RN Canada sets up GST for freelancers and handles their filings and bookkeeping.
As of 2026, GST applies to commercial rent but residential rent is generally exempt. Mixed-use and short-term accommodation have special rules. Charging or claiming GST on the wrong rent type is a common error. RN Canada classifies rental income correctly for GST and records it in your books.
As of 2026, you remit GST by filing a return that nets the GST you collected against the input tax credits you paid, then paying the difference to the CRA by your filing deadline (monthly, quarterly, or annual). RN Canada calculates the net GST and remits on time so you never miss a deadline.
As of 2026, yes — if your input tax credits exceed the GST you collected in a period (common for startups with large purchases or exporters), the CRA refunds the difference. Accurate ITC records are essential. RN Canada files GST returns to recover refunds owed to clients promptly.
As of 2026, many non-resident digital and platform sellers must register under simplified GST/HST rules and charge tax on sales to Canadian consumers. This levels the field with domestic sellers. RN Canada advises foreign sellers on Canadian GST registration and helps domestic buyers handle the tax correctly.
As of 2026, zero-rated supplies (like basic groceries and exports) are taxed at 0% but still allow input tax credits, while exempt supplies (like most residential rent and many financial services) carry no GST and no ITCs. The distinction affects what you can claim. RN Canada classifies your supplies correctly.
As of 2026, many services supplied to non-residents are zero-rated, but rules depend on where the service is performed and consumed. Getting place-of-supply wrong creates assessments. RN Canada determines whether your cross-border services are zero-rated and documents the basis for CRA.
As of 2026, you correct a GST error by adjusting a future return for small amounts or by requesting a formal adjustment for larger ones, ideally before the CRA finds it to limit penalties. Voluntary correction is best. RN Canada reviews past GST filings, corrects errors, and uses voluntary disclosure where appropriate.
As of 2026, GST applies to used goods sold by a registered business in the course of commercial activity, but private sales between individuals are generally not taxed. Trade-ins have special netting rules. RN Canada applies the correct GST treatment to used-goods sales and trade-ins in your bookkeeping.
As of 2026, the federal GST rate in British Columbia is 5%, the same rate that applies across Canada, since BC has not harmonized GST with its provincial sales tax into an HST. Added to BC's 7% PST, the combined sales tax a BC business typically charges is 12%. RN Canada's sales-tax calculator computes both taxes for BC transactions.
As of 2026, registration becomes mandatory once your worldwide taxable revenue passes $30,000 in a single calendar quarter or over four consecutive quarters, with 29 days to register from the sale that crosses the threshold. Failing to register when required does not exempt you from the tax: the CRA can assess the GST/HST you should have collected, plus interest, while you lose the ability to claim input tax credits on purchases made before you were registered. RN Canada helps businesses confirm their registration date and get compliant before the CRA raises it.
As of 2026, a non-resident business making taxable supplies in Canada follows the same $30,000 small-supplier threshold as a domestic business, and registers through the CRA's Business Registration Online service for a nine-digit business number and a GST/HST (RT) program account. Once registered, a foreign business must charge, collect and remit GST/HST on its Canadian sales the same way a Canadian business does. RN Canada assists non-resident businesses with GST/HST registration and ongoing filing.
As of 2026, you register for GST/HST online through the CRA's Business Registration Online service, which issues a nine-digit business number along with a GST/HST (RT) program account, usually instantly. The CRA no longer accepts GST/HST registrations by phone, so online is the standard route once your revenue passes the $30,000 small-supplier threshold. RN Canada's bookkeeping and tax service completes GST/HST registration for clients and sets the correct effective date.
Once worldwide taxable revenue passes the $30,000 small-supplier threshold, GST/HST registration becomes mandatory, and the CRA can register a non-compliant business retroactively to the date the threshold was crossed. The CRA then assesses the GST/HST that should have been collected on every taxable sale since that date, plus penalty and interest, and the business generally cannot go back and bill past customers for the missed tax. Registering voluntarily and getting advice before the CRA finds the gap is a materially better position than being found unregistered on review.
A non-resident business making taxable supplies above the $30,000 small-supplier threshold registers the same way a Canadian business does, through Business Registration Online for a business number and GST/HST (RT) account. Non-resident digital-economy sellers — platforms and vendors selling digital products or services to Canadian consumers — instead register under a separate simplified GST/HST framework built specifically for that group. Which path applies depends on what is sold and to whom, not on where the business is incorporated.