Do contractors and tradespeople in Ontario need to register for HST?
Yes. Construction and trade services — general contracting, electrical, plumbing, HVAC, roofing, carpentry, and similar work — are taxable supplies in Ontario. Once a contractor's revenues cross the $30,000 threshold, registration is mandatory and HST must be charged on labour and materials billed to clients.
Even small operators who quickly cross the threshold early in the season should register promptly, because the obligation to remit arises from the date the threshold is crossed, not from when the registration is processed. Construction businesses also tend to have significant HST-taxable expenses (tools, materials, fuel, vehicles), so being registered and claiming input tax credits is usually financially advantageous.
New home builders face additional complexities: the HST New Housing Rebate may reduce tax for buyers of new builds, and builders have specific obligations around self-supply rules when they construct homes for personal use or rental. The CRA audits the construction sector regularly, so maintaining clean records — matching every invoice received and issued — is essential.
Key takeaways
- Contracting and trade services are taxable — register once you cross $30,000.
- The obligation starts when you cross the threshold, not when you receive your number.
- Input tax credits on tools, materials, and vehicles often make registration financially worthwhile even below the threshold.
- Homebuilders face special rebate and self-supply rules.