Do You Need a GST/HST Number for Your Small Business in Ontario?
- Natalie Paquette
- 3 days ago
- 3 min read
If you’re asking “do I need a GST number for my small business?”, you’re already ahead of most new business owners.
Understanding GST/HST isn’t just about compliance—it directly impacts how you price your services, handle taxes, and stay legal with the Canada Revenue Agency (CRA).
This guide breaks down everything in simple terms so you can confidently decide when (and if) you need to register.
What Is a GST/HST Number?
A GST/HST number is a tax account issued by the CRA that allows your business to collect and remit GST/HST on taxable goods and services in Canada.
GST vs HST in Ontario
In Ontario, you don’t just deal with GST—you deal with HST (Harmonized Sales Tax).
Breakdown:
GST = 5% (federal)
HST in Ontario = 13% (combined federal + provincial)
This matters because your business must charge HST instead of GST if you operate in Ontario.
Do I Need a GST/HST Number for My Small Business?
The $30,000 Rule (Mandatory Registration)
You MUST register for a GST/HST number if:
Your business earns more than $30,000 in taxable revenue
Within a single calendar quarter, OR
Over 4 consecutive quarters
Once you cross this threshold, registration is required by law.
Do I Need a GST Number Under $30,000?
No—but you have the option to register voluntarily.
Here’s when you might WANT to register early:
You want to claim Input Tax Credits (ITCs)
You sell to business clients
You want to look more established
You have startup expenses with GST/HST
Quick Decision Table
Situation | Do You Need GST/HST Number? |
Revenue under $30,000 | ❌ Not required |
Revenue over $30,000 | ✅ Required |
Want to claim ITCs | ✅ Optional but beneficial |
Selling to consumers | ⚠️ Depends on revenue |
Selling to businesses | ✅ Often recommended |
Do I Need a Business Number to Get a GST Number?
Yes.
You must have a Business Number (BN) before registering for GST/HST.
The CRA structure:
Business Number (BN) = your main business ID
GST/HST account = one of the accounts linked to your BN
If you don’t have a BN yet, it’s created when you register for GST/HST or your business.
Who Needs to Register for GST/HST? (Common Scenarios)
1. Freelancers & Contractors
Required once you hit $30K
Often beneficial to register early to claim expenses
2. E-commerce Businesses
If selling goods in Canada, GST/HST may apply even below $30K depending on platform rules
3. Consultants & Service Providers
Almost always required to register once growth starts
4. Side Hustles
Not required under $30K, but often smart to register if expenses are high
When Should You Register?
You can register:
Immediately (voluntary)
Before hitting $30,000
As soon as you cross the threshold
Many business owners choose to register early to:
Claim ITCs
Build credibility
Avoid tracking issues later
Step-by-Step: How to Get a GST/HST Number in Canada
Step 1: Get a Business Number (BN)
Register through the CRA for small businesses, or get your BN automatically from the CRA if you incorporate.
Step 2: Register for GST/HST Account
You can:
Register online via CRA
Register by phone or mail
Step 3: Choose Your Reporting Period
Annual
Quarterly
Monthly (for larger businesses)
Step 4: Start Charging GST/HST
Once registered, you must:
Charge the correct tax
Remit it to the CRA
Input Tax Credits (ITCs) Explained (Important Advantage)
Input Tax Credits allow you to recover the GST/HST you pay on business expenses.
Example:
If you:
Pay $1,000 in HST on expenses
Collect $2,000 in HST from customers
You only remit the difference: $1,000
Pros & Cons of Registering Early
✅ Pros
Claim ITCs on expenses
Look more professional
Avoid sudden registration pressure later
❌ Cons
You must charge GST/HST on all sales
More bookkeeping required
Common Mistakes to Avoid
Not registering after crossing $30K
Not charging GST/HST correctly
Mixing personal and business expenses
Forgetting to file returns
Not keeping proper records
Penalties for Not Registering
The CRA can:
Charge penalties and interest
Require back payment of taxes
Audit your business
Staying compliant from the start is always safer.
Real-World Example
Example: Freelancer in Ontario
Earns $28,000 in Year 1 → No GST required
Earns $35,000 in Year 2 → Must register
Misses registration → May owe back taxes + penalties
Final Thoughts
Understanding whether you need a GST/HST number is a key step in running a compliant and financially smart business in Ontario.
The $30,000 rule is the baseline—but the real strategy depends on your business goals, expenses, and growth plans.
If you're unsure, getting professional help early can save you from costly mistakes later.
When you're ready to register or incorporate your business (& register the HST account at the same time), reach out and let us help you get started!
