The $30,000 threshold: when to register for the GST and QST
Small supplier status, the four-quarter test, the 29-day deadline: what you need to know to register at the right time, neither too early nor too late.
As long as your sales stay modest, you do not have to collect the GST and QST. The rule comes down to one number, $30,000, but the way it is calculated holds a few surprises. Here is how to tell where you stand.
Small supplier status
You are a small supplier as long as your taxable supplies do not exceed $30,000:
- in a single calendar quarter;
- nor in total over the four previous calendar quarters.
A small supplier does not have to register for the GST and QST, and therefore does not charge these taxes to clients.
What counts in the calculation
You add up the taxable supplies made anywhere in the world, by you and by your associates (for example, a corporation you control). Zero-rated supplies, such as certain groceries or exports, also count.
The following are not included:
- the GST and QST amounts themselves;
- financial services;
- the sale of capital property, such as your car or your computer;
- goodwill, when a business is sold.
When you exceed the threshold
It all depends on how you exceed it.
In a single quarter. If your sales in one calendar quarter exceed $30,000, you stop being a small supplier immediately. You must collect the tax starting with the sale that takes you over the threshold, and on every sale after it.
Over four quarters. If it is the total of the last four quarters that exceeds $30,000, you remain a small supplier until the end of the month following that quarter. You collect the tax starting with the first sale made after that date.
In both cases, the Canada Revenue Agency gives you 29 days to register.
An example
Julie is a graphic designer. Her quarterly sales in 2026:
| Quarter | Sales | Total of the last 4 quarters |
|---|---|---|
| January to March | $6,000 | $6,000 |
| April to June | $7,500 | $13,500 |
| July to September | $8,000 | $21,500 |
| October to December | $9,500 | $31,000 |
No single quarter exceeds $30,000, but the total for the year does, at the end of December. Julie remains a small supplier until the end of January 2027: she will charge GST and QST starting with her first sale in February.
Registering before you have to
A small supplier can choose to register. You then have to charge the taxes, but you recover the taxes you pay on your business purchases, through input tax credits (ITCs) for the GST and input tax refunds (ITRs) for the QST.
This is often worthwhile if you make significant purchases for your business, or if your clients are mostly registered businesses, which recover the tax themselves. It is less so if you sell to individuals, for whom the tax adds to the price.
Voluntary registration is a commitment: for the QST, you must remain registered for at least one year.
If you are not registered, the taxes you pay on your purchases cannot be recovered. They become part of the cost of the expense, which you deduct taxes included.
When the threshold does not apply
Some activities require registration from the very first dollar, whatever your sales. This is the case for taxi and commercial ridesharing, for example as an Uber or Lyft driver: registration takes effect on the day you start offering the service.
Once you are registered
In Quebec, Revenu Québec administers both the GST and the QST: you file a single return for both taxes, electronically.
- Rates: 5% GST and 9.975% QST.
- Frequency: if your annual taxable sales do not exceed $1,500,000, your return is generally annual. You can ask for a shorter period, such as quarterly, to spread out your payments.
- Quick method: eligible small businesses can calculate the tax to remit by applying a reduced rate to their sales, instead of tracking every credit. Some services are excluded, including accounting, bookkeeping and legal services.
In MKronos
MKronos adds up your taxable sales and warns you as you approach the $30,000 threshold. Once your GST and QST numbers are entered in your business settings, every income calculates the taxes collected, every expense the taxes you can recover, and your return is prepared with the official line numbers.
Official sources
This article provides general information, current as of its publication date. It does not replace advice from a professional who knows your situation.
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