GST/HST is Canada's value-added sales tax, and how it applies depends on where you do business. Understanding the small supplier threshold, the difference between GST and HST provinces, and how input tax credits work will keep you compliant and help you recover tax on your costs.
What is GST/HST?
GST (Goods and Services Tax) is a federal tax applied across Canada. In some provinces it is combined with the provincial sales tax into a single Harmonized Sales Tax (HST). Other provinces charge a separate provincial sales tax (PST) or QST in Quebec.
| Province type | Tax applied |
|---|---|
| HST provinces (e.g. Ontario) | Single harmonized rate (GST + provincial combined) |
| GST-only provinces (e.g. Alberta) | Federal GST only |
| GST + PST provinces (e.g. BC) | GST plus separate provincial sales tax |
| Quebec | GST plus QST, administered by Revenu Québec |
The small supplier threshold
You generally must register for GST/HST once your worldwide taxable revenues exceed the small supplier threshold over four consecutive calendar quarters. Below that, registration is optional — but often worthwhile.
Input tax credits (ITCs)
Registered businesses charge GST/HST on sales and claim ITCs for the GST/HST paid on eligible business purchases. You remit the net amount to the CRA, or receive a refund if your ITCs exceed the tax collected.
Filing GST/HST returns
- Your filing frequency (annual, quarterly or monthly) depends on your revenue.
- Report tax collected, subtract eligible ITCs, and remit the difference.
- File and pay by the CRA deadline for your reporting period.
- Register for a GST/HST (RT) account under your Business Number.
- Charge the correct rate for the customer's province (place of supply rules).
- Keep receipts and invoices to support ITC claims.
- File returns on time based on your assigned frequency.
- Watch for Quebec's separate QST rules if you sell there.
Common mistakes to avoid
The pitfalls we see businesses run into most often on this topic.
- Charging the wrong rate by ignoring place-of-supply rules for customers in other provinces.
- Missing the small supplier threshold and registering late.
- Claiming input tax credits without proper documentation.
- Overlooking Quebec's separate QST regime.
- Filing GST/HST returns late and incurring interest and penalties.
Frequently asked questions
How Stratancy can help
Stratancy registers your GST/HST account, configures your accounting to apply the correct provincial rates automatically, and manages your returns and input tax credit claims. We handle the nuances — place-of-supply rules, Quebec's QST, and filing frequencies — so nothing slips through. You get accurate, on-time GST/HST compliance and full recovery of the credits you're entitled to.