If your total revenue from self-employment is under $30,000 in any rolling four-quarter period, you are a “small supplier” under the Excise Tax Act and you do not have to register for or collect GST/HST. Once you cross that line — in a single quarter or cumulatively over four quarters — registration becomes mandatory, and you must start charging GST/HST on taxable sales from that point on.
What revenue counts toward the threshold?
The $30,000 threshold applies to your total taxable supplies made in Canada. For most freelancers and sole proprietors, that means gross revenue from clients — before deducting any expenses.
A few important nuances:
- All commercial activities count together. If you do web design and also sell digital products, both streams are added up toward the same threshold — you cannot separate them to stay under $30,000 on each.
- Zero-rated supplies count. Zero-rated goods and services (certain food, medical devices, exports) are technically taxable at 0%, so they count toward the $30,000 total even though no GST/HST is charged on them.
- Exempt supplies do not count. Truly exempt sales — such as certain health services, residential rent, or financial services — are excluded from the calculation entirely.
- Income from employment does not count. Wages from a T4 employer are not commercial activity, so they are not included in the $30,000 threshold even if the rest of your income is self-employment revenue.
How the four-quarter window works
The threshold is not based on a calendar year. CRA uses a rolling look-back of four consecutive calendar quarters. The quarters are fixed: January–March, April–June, July–September, and October–December.
At any point, CRA looks at the four most recent completed quarters (the last 12 months, roughly). If your total taxable revenue in those four quarters exceeds $30,000, you have crossed the threshold.
Example: You earn $9,000 in Q3, $8,000 in Q4 of one year, and $7,000 in Q1 and $7,000 in Q2 of the next year. The four-quarter total is $31,000 — you have crossed the threshold in Q2, even though no single quarter was large.
Two ways to cross the threshold
There are actually two distinct triggers, and registration timing differs between them:
1. The single-quarter trigger
If your revenue in a single calendar quarter exceeds $30,000, you are required to register immediately — even before the quarter ends. You must start charging GST/HST on the very sale that pushed you over $30,000 in that quarter.
2. The four-quarter trigger
If your revenue in the last four consecutive quarters (looking back) exceeds $30,000, you have 29 days from the end of the fourth quarter to register. Unlike the single-quarter trigger, you do not need to start collecting immediately on the sale that crosses the line — the obligation begins at the start of the next quarter after the four-quarter total exceeds the threshold, or 29 days after the trigger, whichever comes first.
Important: These two triggers are distinct and can catch people by surprise. A slow-building year can quietly push you over the four-quarter total in a way that a single-quarter view does not show. It pays to track your rolling total, not just your current-quarter revenue.
When registration becomes mandatory
Once either trigger applies, registration is mandatory. At that point you must:
- Register for a GST/HST account with CRA
- Charge and collect GST or HST on all taxable supplies going forward (the applicable rate depends on the province where the supply is made)
- Track and remit the net tax you collect
The specific rates that apply depend on the province of supply — 5% GST in non-HST provinces, or the applicable HST rate in the participating provinces (Ontario, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland & Labrador).
Enter your revenue on Sidehub’s free GST/HST Registration Checker — it tells you your status and the rules that apply to you.
The ride-share exception
There is one important exception to the small supplier rule: if you provide ride-sharing services (Uber, Lyft, and similar platforms), you are required to register for GST/HST immediately — even if you earn well under $30,000. The small supplier threshold does not apply to taxi or ride-share operators. This rule was brought in when app-based ride-sharing became common and treats those drivers the same as traditional taxi drivers.
Registering voluntarily before you hit $30,000
You can register for GST/HST even if your revenue is under $30,000. There are a few reasons why some self-employed people choose to do this:
- Input tax credits (ITCs). Once registered, you can claim ITCs to recover the GST/HST you pay on business expenses — software subscriptions, equipment, professional fees, and so on. If your expenses are significant relative to your revenue, the ITCs can be worth more than the administrative burden of filing.
- Appearing more established. Some clients, particularly larger businesses, expect their vendors to have a GST/HST number. Not having one can signal that you are very early-stage.
- Simplified transition. If you know you will cross $30,000 soon, registering early avoids the awkward mid-year scramble to backdate your system and notify clients.
The main downside of voluntary registration is the ongoing compliance obligation: you must file GST/HST returns on whatever schedule CRA assigns (annual, quarterly, or monthly), and you are responsible for remitting net tax even in quarters where collection was low.
Quick reference
| Situation | Registration required? |
|---|---|
| Total taxable revenue in last 4 quarters is under $30,000 | No (unless you want to register voluntarily) |
| Single quarter revenue exceeds $30,000 | Yes — register immediately; collect from the sale that crossed the line |
| Last 4 quarters total exceeds $30,000 | Yes — register within 29 days of the end of that quarter |
| Ride-share or taxi operator | Yes — always, regardless of revenue level |
| Revenue under $30,000 but want ITCs on expenses | Optional — voluntary registration is available |
Watch your GST/HST threshold in real time
Sidehub Pro tracks your income automatically and shows a live GST/HST threshold meter on your dashboard — so you can see at a glance whether you’re approaching $30,000 and plan ahead, not react after the fact.
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