When does an Ontario corporation have to register for HST?

A corporation carrying on commercial activity in Canada must register for GST/HST once its total annual taxable supplies exceed thirty thousand dollars in a single calendar quarter or over four consecutive calendar quarters. Below this threshold, the corporation qualifies as a small supplier and is generally not required to register, though voluntary registration is permitted and often advantageous.

Once the thirty-thousand-dollar threshold is exceeded in any single quarter, registration is required at the beginning of the following month. If the threshold is exceeded over four consecutive quarters taken together, registration is required by the following month as well. Once registered, the corporation must collect and remit HST on its taxable supplies and can claim input tax credits to recover HST paid on business expenses.

It is worth noting that some types of supplies are zero-rated (taxed at zero percent) and some are exempt (no HST collected and no input tax credits). In Ontario, HST combines the federal GST component (five percent) and the provincial component (eight percent) for a combined rate of thirteen percent on most goods and services. If your corporation is approaching the threshold, speak with an accountant to plan the transition to registration carefully and ensure your billing and accounting systems are ready.