Canadian GST/HST registration

In Canada, the requirement to register for Goods and Services Tax (GST) and Harmonized Sales Tax (HST) depends primarily on whether a business is considered a “small supplier” under the Excise Tax Act and whether it is carrying on taxable activities in Canada.

Domestic businesses must register for GST/HST when their worldwide taxable revenues exceed CAD 30,000 in a single calendar quarter or over the last four consecutive calendar quarters. Once this small supplier threshold is exceeded, registration becomes mandatory.

Non-resident businesses supplying taxable goods or services to Canadian customers may also be required to register, even if they have no physical presence in Canada. This includes suppliers of cross-border digital services, platforms, and short-term accommodation. In many non-resident B2C scenarios, no small supplier threshold applies, and registration may be required from the first taxable supply.

There is no general small business exemption beyond the CAD 30,000 small supplier threshold. Once the threshold is exceeded — or if a business voluntarily waives small supplier status — GST/HST registration is compulsory. 

Foreign businesses may be required to register for GST/HST in Canada if they engage in activities such as:

• Supplying digital services or intangible property (e.g., streaming services, SaaS, mobile apps) to Canadian consumers
• Operating an online marketplace or platform that facilitates taxable supplies to Canadian customers
• Selling goods that are imported into Canada and delivered to Canadian buyers
• Providing short-term accommodation in Canada, directly or through a platform
• Carrying on business in Canada through inventory, fulfilment arrangements, or other commercial presence

In many of these cross-border scenarios — particularly under Canada’s digital economy measures — registration may be required from the first supply, even if the business is non-resident and has no permanent establishment in Canada.

To register for GST/HST in Canada, businesses typically need to provide:

• A completed GST/HST registration application, submitted online via the Canada Revenue Agency (CRA) portal
• Legal entity details: legal name, business name, country of incorporation, and entity type
• A Business Number (BN) issued by the CRA (assigned as part of the registration process)
• Contact details of the business or authorised representative
• Description of business activities and expected taxable revenues in Canada
• Effective date of registration
• Banking details for refunds (if applicable)
• Filing frequency selection (monthly, quarterly, or annual, depending on turnover and eligibility)

Non-resident businesses are not legally required to appoint a fiscal representative, but many choose to appoint a Canadian tax agent to assist with compliance.

• Structure: A Canadian GST/HST registration number consists of a 9-digit Business Number (BN) followed by a program identifier (e.g., RT0001 for GST/HST).
• The GST/HST account is activated once registration is approved, and the BN becomes the primary tax identifier for federal indirect tax purposes.

After registering for GST/HST in Canada, businesses must:

• File GST/HST returns on a monthly, quarterly, or annual basis, depending on filing frequency
• Charge the applicable GST (5%) or HST (13%–15%) on taxable supplies, based on place-of-supply rules
• Issue GST/HST-compliant invoices or receipts containing mandatory information
• Maintain books and records in accordance with CRA record-keeping requirements (generally for six years)
• Remit GST/HST collected by the applicable filing deadlines
• Apply special rules where relevant (e.g., digital platform rules, simplified regimes, or reverse-charge mechanisms)

Failure to comply with GST/HST obligations can result in penalties, interest, audits, or enforcement action by the Canada Revenue Agency.