Do I Need a GST or HST Number? Who Must Register in Canada

It’s a question many freelancers ask: should I register for a GST or HST number, or can I just skip it?

Short answer: if you’re self-employed, you should seriously consider registering. Here’s a clear, practical explanation of why it matters and how to do it.

First, a quick overview of the taxes involved. In Canada, the federal Goods and Services Tax (GST) is 5% nationwide. Some provinces charge a separate provincial sales tax (PST), while others have combined the two into a Harmonized Sales Tax (HST). For example, Ontario’s HST is 13%, while the four Atlantic provinces use a 15% HST. Quebec charges a separate Quebec sales tax (QST) currently at 9.975%. Freelancers in provinces that don’t harmonize only need to add the 5% GST to invoices, except where local rules say otherwise.

Two common myths about getting a GST/HST number

Two misconceptions often stop freelancers from registering. First, many believe you can only register if your business makes more than $30,000. That’s not correct. The rule is that if your business bills more than $30,000 over four consecutive calendar quarters, you must register and begin charging sales tax. But anyone running an independent business may voluntarily register and charge GST/HST regardless of their current revenue.

The second myth is that registering and complying with GST/HST is too much hassle. It does add administration, but it also brings professional credibility and financial benefits that often outweigh the extra work. Read on for the practical reasons why registration is usually worth it.

The advantage of charging HST

When my partner and I began freelancing nearly 30 years ago, we registered for GST and QST right away—even before reaching the $30,000 threshold. Why? Partly because charging sales tax signals that you’re a serious, established professional. Many long-term clients prefer to work with businesses that present themselves professionally, and including taxes on invoices contributes to that impression.

Charging sales tax also separates part-time hobbyists from full-time businesses in clients’ minds. In competitive markets, the appearance of professionalism can help win repeat contracts and larger clients.

How registering for GST/HST pays off

Beyond credibility, charging GST or HST can make financial sense. When you collect these taxes from clients, you remit to the government the amount you collected minus the GST/HST you paid on eligible business expenses. In practice, that means you recover the sales tax you pay on supplies, internet service, training, and other deductible costs.

For many freelancers, the net amount left after remitting taxes can be significant—enough to cover a substantial business expense or even a personal trip, depending on the year.

Quick method versus detailed method

The Canada Revenue Agency offers two ways to account for GST/HST: the detailed method and the quick method. The detailed method requires you to track the actual GST/HST paid on each business expense and subtract those amounts from the tax you collected. This method can be worthwhile if your taxable expenses are relatively high—generally more than about half your income.

The quick method simplifies reporting. Rather than totaling all the tax paid on purchases, you remit a fixed percentage of the GST/HST you collect. For example, under the quick method you may remit 3.6% of the 5% GST you collect, or a smaller percentage of the HST amounts in provinces that use HST (for instance, an 8.8% remittance rate from the 13% HST collected in Ontario). The quick method reduces bookkeeping and makes quarterly filings much easier.

There’s an additional advantage: an increased credit on the first $30,000 of gross revenue under the quick method, which lowers the percentage you remit on that initial revenue. If you use the quick method, remember to add that retained amount to your taxable revenue when filing your income tax return, as required.

By default, new registrants are placed on the detailed method, but you can apply to use the quick method if you have been in business for the prior 365 days and your revenues do not exceed the IRS limit for that election. Some businesses—such as certain financial services or non-profits—are not eligible for the quick method.

The quick method is especially useful for freelancers who prefer to avoid keeping a detailed record of sales tax paid on each pen, paper, or subscription. Many small businesses find it simpler to calculate remittances in a spreadsheet and avoid the time-consuming tracking required by the detailed method.

How to get a GST or HST number

You do not need to incorporate to register for a GST/HST number and there is no fee to register. Contact the Canada Revenue Agency to apply, or use the online registration service. Quebec businesses should register with Revenu Québec for provincial tax accounts if required. Registration is a straightforward process: complete the form, wait for your business number and tax account numbers, then include those numbers on your invoices along with the tax amounts charged.

How to make GST/HST payments

After registering, you can file and pay GST/HST monthly, quarterly, or annually. Many freelancers choose quarterly or annual reporting. The Canada Revenue Agency’s online business account service makes it convenient to view your account, file returns, and remit payments electronically. If you prefer, you can request remittance vouchers and pay through your financial institution.

Your filing and payment deadlines depend on your reporting period. For example, a quarterly filer generally has until one month after the end of the reporting quarter to file and remit.

Pro tip: start charging GST/HST before it’s mandatory

Charging sales tax early can prevent surprises. You might estimate $25,000 for the year, but a single large contract could push you past the $30,000 threshold and make registration mandatory. Because the $30,000 threshold has not kept pace with inflation, even part-time freelancers can reach it more easily than in the past. Starting to collect GST/HST proactively avoids scrambling to register and adjust invoices if your business grows unexpectedly.

More about self-employment:

• Side hustles and self-employment in Canada: taxes, business expenses and more
• How gig workers and ride-share drivers are taxed in Canada
• Setting fees: how much to charge for freelance services
• Starting your own business: the basics
• Becoming a digital nomad without going broke