Why should I register for an HST number in Ontario?

Registering for an HST number allows you to collect and remit HST legally, claim input tax credits, and appear more professional to clients and suppliers.

Do all businesses in Ontario need an HST number?

No. Only businesses with taxable sales exceeding $30,000 in a calendar year are required to register. However, smaller businesses may choose to register voluntarily to claim input tax credits.

What are the benefits of registering for an HST number for a small business?

Benefits include legally charging HST, claiming back HST paid on business expenses, improving business credibility, and avoiding penalties for unregistered taxable sales.

How do I register for an HST number in Ontario?

You can register online through the Canada Revenue Agency (CRA), by mail, or by phone. A guided service can simplify the process and ensure your registration is done correctly.

Can I register for an HST number before reaching $30,000 in sales?

Yes. Voluntarily registering allows you to collect HST legally, claim input tax credits on business expenses, and prepare for future growth.

How long does it take to get an HST number in Ontario?

Most businesses receive their HST number immediately when registering online. Paper registrations may take a few weeks to process.

Do I need an HST number if my business is a sole proprietorship?

Only if your taxable sales exceed $30,000 in a year, or if you choose to register voluntarily. Sole proprietorships follow the same rules as other business structures.

What taxes can I claim back once I have an HST number?

You can claim input tax credits for HST paid on eligible business expenses, such as supplies, equipment, and professional services, reducing your net tax payable.

What happens if I charge HST without registering?

Charging HST without a registration is illegal and can result in penalties. It’s essential to register before collecting HST from customers.

How often do I need to file HST returns in Ontario?

Filing frequency depends on your annual revenue: monthly, quarterly, or annually. Filing on time ensures compliance and avoids interest or penalties.

Can incorporating my business affect my HST registration?

Yes. When incorporating, your new corporation may need its own HST number. Existing HST accounts for sole proprietorships do not automatically transfer to a corporation.

Is it difficult to register for an HST number in Ontario?

The process is straightforward, especially online. Using a guided service can make it even easier, ensuring your registration is complete and accurate.

What is the easiest way for small business owners to manage HST registration and compliance?

Using a guided registration service or accounting software helps small business owners handle HST registration, filing, and reporting accurately, reducing stress and errors.

Why Registering for an HST Number is a Smart Move for Your Business

Natalie Paquette
Oct 1
3 min read

pink piggy bank sitting on top of a calculator

If you're running a business in Canada — especially in a province like Ontario — you've probably heard about the HST number. At first glance, it might feel like just another piece of government paperwork. However, registering for a Harmonized Sales Tax (HST) number can actually bring some real advantages to your business.

Let's break it down in simple terms: what it is, when you need it, and why it might be a smart move — even if you're not required to get one just yet.

First, What is an HST Number?

HST stands for Harmonized Sales Tax. In Ontario and a few other provinces, HST combines both federal (GST) and provincial (PST) sales taxes into one single tax.

When you register for an HST number, you're telling the Canada Revenue Agency (CRA) that you're collecting and remitting sales tax on behalf of the government — and that your business is legit, compliant, and operating above board.

When Do You Have to Register?

It's not always the case that you must register for an HST number. You're required to register for an HST/GST number if:

You make over $30,000 in gross revenue in a 12-month period (this includes worldwide revenue, not just Canadian).
You're not a small supplier (as defined by the CRA).
You're selling taxable goods or services in Canada.

But even if you're under that $30,000 threshold, registering voluntarily can have some real benefits.

The Benefits of Registering for an HST Number

1. You Can Claim Input Tax Credits (ITCs)

This is a big one. When you're registered for HST, you can get back the HST you pay on business expenses — like equipment, software, office supplies, or professional services.

For example, if you spend $1,000 on a laptop and pay $130 in HST, you can claim that $130 back when you file your HST return. That adds up fast!

2. It Adds Legitimacy to Your Business

Clients and vendors tend to see businesses with HST numbers as more established and trustworthy. It gives an impression that you're serious, professional, and playing by the rules, which can go a long way in building credibility.

3. You're Future-Proofing Your Growth

If your business is growing (or you want it to), you'll eventually hit that $30,000 revenue mark. Registering before it's required means you're already set up and won't have to scramble to comply later.

Plus, you'll already be in the habit of tracking your sales tax, which makes life easier at tax time.

4. You Can Work with Bigger Clients

Many larger companies or government agencies prefer — or even require — vendors to charge HST. Having a number makes it easier to work with them, issue proper invoices, and get paid faster.

5. Avoid Penalties and Surprise Tax Bills

If you go over the $30,000 threshold without registering, the CRA can charge you for the HST you should have collected — out of your own pocket. Ouch!

By registering early, you avoid that risk and stay compliant from day one.

Bottom Line

Registering for an HST number isn't just about checking a legal box — it's about giving your business more credibility, cash flow benefits, and room to grow. Even if you're just starting out, it's worth considering, especially if you're investing in your business and want to claim those tax credits.

Not sure if you need to register yet? Talk to your accountant or tax advisor — or visit the CRA website for more info. But when in doubt, getting ahead of the curve can save you time, money, and stress down the road.

Need help registering your business or getting your HST number?

Let us know — we're here to make the process simple, so you can focus on doing what you do best.

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