When do I need to register for GST/HST in Canada?

You must register for GST/HST if your revenue exceeds $30,000 CAD in any 12-month period. You have 30 days to register once you exceed this threshold.

What are the current GST, PST, and HST rates in Canada?

GST is 5% federally. PST varies by province (0-10%). HST combines both in participating provinces: Ontario 13%, Nova Scotia 15%, New Brunswick 15%, Newfoundland 15%, Prince Edward Island 15%.

What information must be included on GST/HST invoices?

Your invoices must include: business name and GST/HST registration number, invoice date and unique number, customer name and address, description of services, amount before tax, GST/HST amount or rate, and total amount including tax.

How often do I need to file GST/HST returns?

Filing frequency depends on revenue: Annual filing for revenue under $1.5M, quarterly for $1.5M-$6M, and monthly for over $6M. Deadlines are one month after the period end.

Complete Canadian Contractor Tax Guide 2024: GST, PST, HST Explained

As a Canadian contractor, understanding your tax obligations is crucial for staying compliant with the Canada Revenue Agency (CRA) and maximizing your profits. This comprehensive guide covers everything you need to know about GST, PST, HST registration, calculation, and compliance in 2024.

Understanding Canadian Sales Taxes for Contractors

What Are GST, PST, and HST?

GST (Goods and Services Tax): 5% federal tax applied across all provinces
PST (Provincial Sales Tax): Provincial tax varying by province (0-10%)
HST (Harmonized Sales Tax): Combined GST+PST in participating provinces

💡 Pro Tip

HST provinces (ON, NB, NL, NS, PE) use a single HST rate instead of separate GST+PST. This simplifies your invoicing!

2024 Canadian Tax Rates by Province

Province	GST/HST Rate	PST Rate	Total Rate
Alberta	5% GST	0%	5%
British Columbia	5% GST	7% PST	12%
Ontario	13% HST	-	13%
Quebec	5% GST	9.975% QST	14.975%
Saskatchewan	5% GST	6% PST	11%

When Do You Need to Register for GST/HST?

Small Supplier Threshold

You must register for GST/HST if your revenue exceeds $30,000 CAD in any 12-month period. This includes:

All taxable sales and services
Revenue from all business activities
Associated businesses (if applicable)

⚠️ Important

You have 30 days to register once you exceed the $30,000 threshold. Late registration can result in penalties and interest charges from CRA.

Voluntary Registration Benefits

Even under $30,000, you might want to register voluntarily to:

Claim Input Tax Credits (ITCs) on business expenses
Appear more professional to larger clients
Avoid future registration delays when you hit the threshold

How to Calculate Taxes on Your Invoices

Example Calculation: $1,000 Service in Ontario

Service Amount: $1,000.00

HST (13%): $130.00

Total Invoice: $1,130.00

Example Calculation: $1,000 Service in BC

Service Amount: $1,000.00

GST (5%): $50.00

PST (7%): $70.00

Total Invoice: $1,120.00

Required Information on GST/HST Invoices

Your invoices must include:

Your business name and GST/HST registration number
Invoice date and unique invoice number
Customer's name and address
Description of goods/services provided
Total amount before tax
GST/HST amount or rate charged
Total amount including tax

Filing GST/HST Returns

Filing Frequency

Annual Filing: Revenue under $1.5 million
Quarterly Filing: Revenue $1.5M - $6M
Monthly Filing: Revenue over $6M

Filing Deadlines

Annual: March 31 (for calendar year)
Quarterly: One month after quarter end
Monthly: One month after month end

Common Contractor Tax Mistakes to Avoid

Not registering when required: Can result in penalties and interest
Incorrect tax calculations: Double-check provincial rates
Missing invoice requirements: Incomplete invoices may not be valid
Not claiming Input Tax Credits: Missing out on tax refunds
Late filing: Results in penalty fees

💰 Money-Saving Tip

Keep detailed records of all business expenses with GST/HST. You can claim Input Tax Credits to reduce what you owe to CRA!

Simplify Your Tax Calculations

Manually calculating Canadian taxes for every invoice is time-consuming and error-prone. Professional invoicing software can automatically calculate GST, PST, and HST based on your client's location, ensuring 100% accuracy and CRA compliance.

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