GST (Goods and Services Tax) at 5% applies federally across Canada. In provinces with HST — Ontario (13%), Nova Scotia (14%), New Brunswick, Newfoundland, and PEI (15%) — the provincial component is collected in the same remittance. Here is how it works for freelancers.
The Basics: What GST/HST Is
GST/HST is a consumption tax on most goods and services sold in Canada. As a freelancer providing taxable services, once you are registered you collect GST/HST from Canadian clients on their invoices, hold it in your business account, and remit it to the CRA on your filing schedule. GST/HST you collect from clients is not your income — it is a tax you are collecting on behalf of the government.
The $30,000 Registration Threshold
You are a “small supplier” and are not required to register for GST/HST until your total taxable revenues exceed $30,000 in four consecutive calendar quarters.
The four-quarter rule is rolling, not calendar-year based. If you earned $8,000 per quarter for four consecutive quarters ($32,000 total), you have crossed the threshold even though no single quarter exceeded $30,000.
The moment a single transaction causes you to exceed $30,000 in a rolling four-quarter period — or in a single quarter — you must register for GST/HST. You have 29 days from that threshold-crossing sale to register.
GST/HST Rates by Province (2026)
| Province | Type | Rate |
|---|---|---|
| Ontario | HST | 13% |
| British Columbia | GST + PST | 5% GST + 7% PST = 12% total |
| Alberta | GST only | 5% |
| Quebec | GST + QST | 5% GST + 9.975% QST = 14.975% total |
| Nova Scotia | HST | 14% (reduced from 15% on April 1, 2025) |
| New Brunswick | HST | 15% |
| Newfoundland & Labrador | HST | 15% |
| Prince Edward Island | HST | 15% |
| Manitoba | GST + PST | 5% GST + 7% PST = 12% total |
| Saskatchewan | GST + PST | 5% GST + 6% PST = 11% total |
Note: In BC, Manitoba, and Saskatchewan, PST is separate from GST and has its own registration requirements. If your services are subject to PST in those provinces, you may need a separate PST registration.
For HST provinces, the CRA administers GST/HST centrally — one registration, one return. For GST + PST provinces, GST is filed with the CRA and PST is filed separately with the provincial government.
Input Tax Credits (ITCs): The Key Benefit of Registration
Once registered, you can claim Input Tax Credits — recovering the GST/HST you paid on business purchases. You paid $650 in HST on software, equipment, and professional services this year? You claim it back as an ITC on your GST/HST return, reducing what you owe the government.
ITCs are one of the main reasons to register voluntarily before hitting $30,000 — if your business expenses are significant, ITCs can be worth more than the administrative overhead of filing returns.
The Quick Method: Simpler Remittance for Small Businesses
If your annual revenues are under $400,000, you can elect the Quick Method of accounting. Instead of tracking every ITC individually, you pay a flat remittance rate on your gross revenue (including HST). For service-based businesses in Ontario:
- Collect 13% HST from clients (as always)
- Remit only 8.8% to CRA (instead of 13% minus individual ITCs)
- Plus a 1% credit on the first $30,000 of revenue
The spread (13% collected – 8.8% remitted = 4.2% retained) benefits most freelancers with low business expenses. If your annual ITCs on purchases would exceed approximately $4,700 (the break-even point for Ontario), the regular method saves more.
Filing GST/HST Returns
Most new registrants with annual taxable revenues under $1.5 million file annually. Your annual GST/HST return and payment are due one month after your fiscal year end — for December 31 year-end businesses, that is January 31. However, self-employed individuals with a December 31 fiscal year can elect to pay by April 30 (same as their income tax payment).
File through your CRA My Business Account at canada.ca, or through your accounting software if it supports GST/HST filing.
Frequently Asked Questions
Do I charge GST/HST to US clients?
No. Services exported to clients outside Canada are zero-rated — you charge 0% GST/HST. You can still claim ITCs on your Canadian business expenses even when serving international clients. Keep records showing the client is outside Canada (contract with foreign address, payment from foreign bank account).
What if I register late?
If you cross the $30,000 threshold and do not register within 29 days, you are technically required to remit GST/HST on sales made after the threshold was crossed — even if you did not collect it from clients. This means the GST/HST comes out of your pocket. Register on time and retroactively collecting from established clients is awkward; the better approach is proactive monitoring of your revenue total.
Can I deregister from GST/HST if my revenue drops?
Yes. You can apply to deregister if you expect your revenue to remain below $30,000 for two consecutive years. However, deregistering requires repaying some ITCs previously claimed. Unless revenue has dropped significantly and permanently, staying registered is usually better — you keep ITC benefits and avoid re-registering later.