In Canada, you must register for GST/HST once your business's worldwide taxable revenue passes $30,000 over four consecutive calendar quarters (or in a single quarter). Below that you are a "small supplier" and registration is optional. The rate you charge depends on the province: 5% GST in Alberta (no provincial sales tax), 12% in BC (5% GST + 7% PST), and 13% HST in Ontario. This guide covers the 2026 thresholds, provincial rates, input tax credits, and how to file — the practical sales-tax picture for a Canadian small business.
The $30,000 small-supplier threshold
The single most important number in Canadian sales tax is $30,000. As of the 2026 tax year:
- If your total taxable revenue is $30,000 or less over four consecutive calendar quarters, you are a small supplier and are not required to register for or charge GST/HST.
- Once you exceed $30,000 — either in one calendar quarter or cumulatively across four consecutive quarters — you must register and begin charging GST/HST.
The test is rolling, not tied to your fiscal or calendar year. Importantly, you must start charging GST/HST on the very sale that pushes you over the threshold, not on some later date. You then have 29 days from that effective date to register. (Taxi and ride-share drivers must register regardless of revenue.)
Note: as of November 3, 2025, the CRA no longer accepts GST/HST registration by phone — new registrations are done online through Business Registration Online.
2026 sales tax rates by province
Canada uses three models: GST-only provinces, HST provinces, and GST-plus-PST provinces. Here are the headline rates as of 2026.
| Province / region | Model | Combined rate | Notes |
|---|---|---|---|
| Alberta | GST only | 5% | No PST, no HST — simplest |
| British Columbia | GST + PST | 12% | 5% GST + 7% PST (separate filings) |
| Saskatchewan | GST + PST | 11% | 5% GST + 6% PST |
| Manitoba | GST + RST | 12% | 5% GST + 7% Retail Sales Tax |
| Ontario | HST | 13% | 5% federal + 8% provincial |
| Nova Scotia | HST | 14% | reduced from 15% on April 1, 2025 |
| New Brunswick / Newfoundland & Labrador / PEI | HST | 15% | — |
| Quebec | GST + QST | 14.975% | 5% GST + 9.975% QST |
| NWT / Nunavut / Yukon | GST only | 5% | No provincial sales tax |
GST (5%) is the federal tax that applies everywhere. HST is a harmonized single tax that rolls the provincial portion into the federal tax and is administered by the CRA — Ontario's 13% is 5% federal plus an 8% provincial component. PST (in BC, Saskatchewan and Manitoba) is a separate provincial tax with its own registration and return.
Input tax credits: why GST/HST is (mostly) a flow-through
For a registered business, GST and HST are largely a flow-through. You collect the tax on your sales, claim input tax credits (ITCs) for the GST/HST you paid on business purchases and expenses, and remit only the difference. If you paid more tax on inputs than you collected on sales — common in a startup buying equipment — you get a refund.
To claim ITCs you need valid supplier invoices showing the GST/HST charged and the supplier's registration number on larger purchases. This is why voluntary registration before hitting $30,000 often makes sense: a new B2B business with significant startup spending can recover GST/HST on that spending immediately, rather than absorbing it.
PST is different. In BC, Saskatchewan and Manitoba, there is generally no equivalent credit — PST you pay on business inputs is a real cost baked into your expenses. This is a key reason Alberta's GST-only system is simpler and cheaper to operate than BC's GST + PST system.
Filing frequency and deadlines
How often you file a GST/HST return depends on your annual taxable sales. As of 2026:
| Annual taxable supplies | Default filing frequency |
|---|---|
| $1.5 million or less | Annual |
| Over $1.5 million up to $6 million | Quarterly |
| Over $6 million | Monthly |
You can elect to file more frequently than your default (for example, quarterly instead of annual) if you regularly expect refunds. Most GST/HST registrants must file electronically with the CRA. PST returns in BC, Saskatchewan and Manitoba are filed separately with the relevant provincial ministry on their own schedules.
One BC note: under the 2026 BC Budget, effective October 1, 2026, PST is extended to certain professional services (including accounting and bookkeeping) — if you provide or buy those services in BC, expect new PST obligations from late 2026.
Quick decision guide
- Revenue under $30,000 and mostly B2C? You may stay a small supplier and not charge tax — but you also can't claim ITCs.
- Revenue under $30,000 but heavy startup spending or B2B? Consider voluntary registration to recover GST/HST on inputs.
- Operating in BC, SK or MB? Budget for non-recoverable PST and a second registration and return.
- Operating in Alberta? One 5% GST to manage — the simplest sales-tax province.
Model the numbers with our sales tax calculator. For provincial-specific corporate context, see our BC corporate tax guide and Alberta corporate tax guide, and browse common questions in our GST FAQ hub.
How RN Canada helps
RN Canada is an accounting and advisory firm with offices in Edmonton and Vancouver, led by Ozgur Duymaz, Ph.D., CPA (Canada), ACCA (UK), CMA (US). We handle GST/HST registration and returns, BC and prairie PST registration and remittance, input-tax-credit tracking, and the voluntary-registration analysis that decides whether early registration pays off for your business. As BC extends PST to professional services in late 2026, we help affected clients assess and meet their new obligations. See our bookkeeping and tax filing service to get your sales-tax compliance handled end to end.
Frequently asked questions
You must register once your worldwide taxable revenue exceeds $30,000 in a single calendar quarter or over four consecutive quarters. Below that you are a small supplier and registration is optional. The $30,000 test is rolling, not a calendar-year figure, and you must start charging GST/HST on the very sale that pushes you over the threshold.
GST is the 5% federal tax that applies everywhere. HST is a single harmonized tax (for example 13% in Ontario) that combines GST with a provincial portion and is administered federally. PST is a separate provincial sales tax in BC, Saskatchewan and Manitoba that is filed with the province and, unlike GST/HST, is generally not recoverable as an input tax credit.
No. Alberta has no PST and no HST — only the 5% federal GST applies. The territories (Northwest Territories, Nunavut, Yukon) are the same. This makes Alberta the simplest sales-tax province for business: one 5% GST to collect and remit, with full input tax credits and no separate provincial sales-tax registration or return.
Input tax credits let a GST/HST registrant recover the GST or HST paid on business purchases and expenses. You subtract your ITCs from the tax you collected on sales and remit only the net. Keep supplier invoices showing the GST/HST charged. PST, by contrast, generally has no equivalent credit, so PST paid on inputs is a real cost.
Filing frequency depends on annual taxable sales. As of 2026, businesses with $1.5 million or less in annual taxable supplies file annually, those between $1.5 million and $6 million file quarterly, and those above $6 million file monthly. You can elect to file more frequently. Most GST/HST returns must be filed electronically with the CRA.
Often yes. Voluntary registration lets you claim input tax credits on startup costs and equipment before you reach $30,000, which can mean real refunds in your first year. The trade-off is that you must charge GST/HST to customers and file returns. It usually pays off for B2B businesses and those with significant taxable startup spending.