f you’re starting a business in Canada, understanding GST/HST is critical. Many new business owners delay registration, file incorrectly, or miss out on valuable input tax credits simply because the rules aren’t explained clearly.
This guide breaks it down in simple terms so you know when to register, how to file, and what you can legally claim.
GST (Goods and Services Tax) and HST (Harmonized Sales Tax) are consumption taxes charged on most goods and services in Canada.
GST: 5% (federal)
HST: Combined federal + provincial tax (varies by province)
In Ontario, businesses charge 13% HST.
You must register if:
Your business earns more than $30,000 in revenue over any 12-month period
You charge GST/HST on taxable supplies
You operate as a sole proprietor, corporation, or partnership
You may choose to register voluntarily even if you earn less than $30,000, which can be beneficial.
ITCs allow you to recover the GST/HST you paid on business expenses, such as:
Office rent
Equipment and software
Marketing and advertising
Professional fees
Vehicle expenses (business portion)
This can significantly reduce how much tax you owe.
Your filing frequency depends on revenue:
Annual
Quarterly
Monthly
Filing correctly and on time is critical to avoid:
Late filing penalties
Interest charges
CRA reviews or audits
Missing the $30,000 registration threshold
Charging tax without registering
Forgetting to claim ITCs
Mixing personal and business expenses
Filing late or incorrectly
These mistakes can be costly but are completely avoidable with proper guidance.
At MapleTax Solutions, we help new and growing businesses:
Register for GST/HST correctly
Set up proper bookkeeping systems
File accurate and timely returns
Maximize ITCs legally
Stay CRA-compliant year-round
We simplify the process so you can focus on running your business.
Whether you’re registering for the first time or fixing past filings, we’re here to help.
Request an Appointment Today
📞 647-797-6565
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