The $30,000 GST/HST Rule Every Passive Earner in Canada Should Know

You don't have to charge GST/HST from day one. Canada's small supplier rule lets you skip registration until your taxable sales pass $30,000 — but the way it's counted catches people out.

How the threshold works

• It's based on total taxable revenue (before expenses) from all your businesses combined.
• It's measured over any four consecutive calendar quarters, not just one tax year.
• If a single quarter goes over $30,000, you must register right away.

What counts — and what doesn't

Long-term residential rentals (one month or more) are generally exempt from GST/HST, so they don't count toward the threshold. Short-term accommodation, gear rentals, and digital products sold to Canadians generally do.

Should you register early?

Registering voluntarily lets you claim input tax credits — getting back the GST/HST you pay on equipment, software and supplies. It can make sense if you have big startup costs or sell mostly to businesses. The trade-off is quarterly or annual filing.

Your monthly checklist

• Track gross sales by quarter in a simple spreadsheet.
• Add up the last four quarters every month.
• Register through CRA My Business Account once you near $30,000.