If you’ve recently started working for yourself — maybe as a freelancer, contractor, or small business owner — you’ve probably heard something about charging GST or HST. And at first, it can sound confusing.
​
But here’s the simple version.
​
GST stands for Goods and Services Tax.
HST stands for Harmonized Sales Tax.
​
They are sales taxes collected on most products and services sold in Canada. If you run a business, even a one-person side hustle, you may eventually need to charge it, collect it, and send it to the government.
Do I Need to Register for GST / HST
​
If your total business revenue is more than $30,000 over the last 12 months, you must register for a GST/HST number. That $30,000 includes all your business income before expenses — not just your profit.
​
If you make less than that, registering is optional. Some people still choose to register early because it lets them claim back the GST/HST they pay on their own business expenses.
​
Think of it this way: registering for GST/HST means you’re not just a side hustle anymore — you’re officially in business.
What Happens When You Register
​
Once you register, the CRA gives you a GST/HST number. You now have the job of:
​
-
Charging GST or HST on your invoices (depending on the province your customer is in)
​
-
Collecting that tax from your clients or customers​
​
-
Sending it to the CRA, usually once a year or every quarter
​
-
Filing a return that shows what you collected and what you spent
​
The good news is, once you’re registered, you can also claim back the GST or HST you paid on your business expenses. That’s called an Input Tax Credit. So if you bought a new laptop or paid for online tools or supplies, the GST/HST on those items might be refundable to you.
How Much Tax Do You Charge
​
It depends on where your customer is located, not where you are. Here’s a quick breakdown:
​​
-
13 % HST in Ontario
​
-
5% GST in Alberta
​
-
15% HST in Nova Scotia, New Brunswick, Newfoundland and Labrador, and PEI
​
-
5% GST plus provincial PST in British Columbia, Saskatchewan, Manitoba, and Quebec
​
Your invoice needs to clearly show the tax rate and registration number once you’re signed up.
​
Where Do I Register
​
You can register for a GST/HST number:
​
-
Online through the CRA’s Business Registration portal
​
-
By calling the CRA directly
​
-
Through your accountant or a tax professional
​
Once you’re set up, keep good records of your invoices and receipts. When it’s time to file your return, you’ll need to report both what you collected and what you paid.
Bottom Line
​
GST/HST isn’t just for big companies. If you’re earning more than $30,000 from self-employment or running a growing business, it’s part of the deal.
​
It might feel like one more thing to learn, but it’s manageable. Think of it as learning a new habit — like invoicing with tax included, keeping your receipts, and setting aside money for the CRA.
​
Being registered means you’re building something real. It’s one more sign you’re not just working for yourself — you’re running a business.
Would you like a sample invoice that includes GST/HST or a step-by-step guide to registering?