The $30,000 HST small-supplier rule in Ontario

Most Ontario businesses charge 13% HST once they are no longer a small supplier. You generally become a registrant when your worldwide taxable revenues from the previous four calendar quarters exceed $30,000, or you pass $30,000 in a single calendar quarter.

What counts

If you cross the line in a single quarter, registration is generally effective the day you pass it, not next month. Charge HST from that day and open the RT account with CRA. After that, filing is annual, quarterly, or monthly depending on revenue. We set the account up and keep the working papers with the bookkeeping.

• Taxable supplies count, including zero-rated supplies such as many basic groceries and exports. Exempt supplies, such as many residential rents and most health-care services, do not.
• The test is revenue, not profit. Expenses do not reduce the $30,000.
• Associated persons can have to share the threshold. Two corporations you control are not two fresh $30,000 limits.

Voluntary registration

Under $30,000 you may still register so you can claim input tax credits on equipment, rent, and software. That only helps if your customers can absorb 13% or are themselves registrants. A consultant billing consumers often waits. A consultant billing corporations usually registers early.