The $30,000 Small Supplier Rule: When MUST You Register?

Decoding the Most Famous Number in Canadian Tax

For startups and side-hustlers, the $30,000 limit is the boundary between voluntary and mandatory tax compliance.

How to Calculate Your Revenue

The CRA looks at your total worldwide taxable sales (including zero-rated sales like exports). Do not subtract your expenses—this is a gross revenue test.

The "Four Consecutive Quarters" Rule

The CRA test is based on calendar quarters, not only Jan-Dec totals. You must monitor:

• Any single quarter over $30,000
• The rolling total over the last four consecutive calendar quarters

Example: If you earn $8,000 each quarter, your four-quarter total reaches $32,000, and registration becomes mandatory.

Exceptional Cases: Mandatory Registration

Some businesses must register immediately, regardless of revenue:

• Taxi and limousine drivers (including ride-sharing in some contexts)
• Non-resident performers selling admissions to seminars or shows

What Happens When You Hit the Limit?

1. You have 29 days to apply for a GST/HST account.
2. You must start charging tax from the applicable effective date set by CRA rules (immediately in single-quarter exceed cases, or by the month after the quarter in four-quarter exceed cases).

Plan your registration with our Step-by-Step Guide →

Run the Canada GST/HST calculator for province-based totals →

FAQ: Small Supplier Rule

Can I deregister if my revenue drops below $30,000?

Generally, you must stay registered for at least one full year before you can apply to close your account.

Do I count sales to the US?

Yes, exports are "zero-rated taxable sales" and count toward the $30,000 threshold.

Source

• CRA: When to register and start charging the GST/HST