Sales Taxes ->GST/HST -> GST or HST small supplier
GST/HST - Small Supplier
In most cases, a small supplier is not required to register to collect GST/HST. There are exceptions - see below.
A small supplier is a supplier whose worldwide annual GST/HST taxable supplies, including zero-rated supplies and including the supplies (sales) of all associates, are less than $30,000, or less than $50,000 for public service bodies (colleges, non-profit organizations, charities, hospitals). However, the calculation of annual revenue is not just done on a calendar year basis. At the end of each calendar quarter (March 31, June 30, September 30, and December 31), total taxable supplies for the past 4 consecutive quarters (i.e., for the past 12 months) should be totalled. If this total exceeds $30,000, the business must register to start collecting GST. Note that the taxable supplies will include sales as well as expenses incurred on behalf of the customer and rebilled to the customer.
Small Supplier Calculation Example
Here is an example of a small supplier's quarterly sales, showing when the small supplier is no longer a small supplier, and must register to collect GST or HST. This supplier started business in January 2009.
In the above example, the sale that caused the supplier to exceed the $30,000 limit occurred on Jul 22, 2010, and the limit was exceeded all in one quarter, so:
This next example shows a slightly different situation.
In the above example, the sale that caused the supplier to exceed the $30,000 limit occurred on Jun 22, 2010, and the limit was exceeded over 4 quarters, not in a single quarter as in the first example, so:
Tax Tip: Always keep track of your annual sales so you can predict when you will have to register.
A small supplier must register to collect GST or HST if they carry on a taxi business, according to s. 240(1.1) of the Excise Tax Act of Canada. This would also include Uber taxi drivers. The same is true of QST in Quebec. Also, according to s. 240 (2), any person "who enters Canada for the purpose of making taxable supplies of admissions in respect of a place of amusement, a seminar, an activity or an event is required to be registered" to collect GST.
Small Supplier Voluntary Registration
A small supplier can choose to voluntarily register to collect GST/HST, in order to recover the GST/HST they have paid, by claiming input tax credits. See our information on voluntary registrations.
Canada Revenue Agency Resources:
Revised: October 27, 2016
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