GST/HST for Freelancers in Canada: When to Register and How to File

You must register for GST/HST in Canada once your total taxable revenues exceed $30,000 in any single calendar quarter or in four consecutive calendar quarters. Until you cross that threshold, registration is optional — but can be advantageous if you have significant business expenses.

Disclaimer: GST/HST rules and rates change. Always verify at canada.ca and consult a qualified accountant before filing.

Who Must Register for GST/HST?

As a self-employed freelancer, you are a small supplier exempt from GST/HST registration until your worldwide taxable supplies exceed $30,000. Once you cross this threshold in a single quarter or cumulatively over four consecutive quarters, you must register within 29 days.

Important exception — rideshare drivers: If you drive for Uber, Lyft, or any rideshare platform, the CRA treats this as a taxicab service. You must register for GST/HST immediately, regardless of revenue. The $30,000 threshold does not apply. Uber and Lyft typically collect and remit HST in most provinces on your behalf, but confirm your arrangement with the platform.

GST/HST Rates by Province (2025)

The rate you charge depends on the province where your supply is made (generally where your client is located for services). Cross-border rules can be complex — consult the CRA's Place of Supply rules for your specific situation.

How to Register

Register online through CRA My Business Account or by calling 1-800-959-5525. You will receive a Business Number (BN) with a GST/HST account identifier (RT suffix). Registration is free and typically processed within a few days online.

You can also voluntarily register before reaching the $30,000 threshold. Many freelancers do this to start claiming Input Tax Credits (ITCs) on business expenses immediately — especially useful if you have significant startup costs.

Charging GST/HST on Your Invoices

Once registered, you must add GST/HST to every invoice for a taxable supply made in Canada. Your invoice must show:

• Your Business Number (BN) with the RT suffix
• The date of the supply
• The total amount charged, including GST/HST
• The GST/HST amount (or a statement that the total includes GST/HST at the applicable rate)

For invoices under $30, you do not need to show the BN or GST/HST amount separately, but you must still have collected and remit the tax.

Input Tax Credits (ITCs)

As a GST/HST registrant, you can claim Input Tax Credits to recover the GST/HST you paid on business purchases. This is one of the key benefits of registration: the GST/HST you pay on software, equipment, phone bills, professional services, and other business costs is effectively refundable through your GST/HST return.

To claim an ITC, keep the receipt or invoice showing the supplier's BN and the GST/HST paid. TaxSort stores all scanned receipts with full details — making ITC claims straightforward at filing time.

Filing Your GST/HST Return

Your filing frequency depends on your annual taxable supplies:

• Under $1.5 million: Annual filing (with quarterly instalments if tax owing exceeds $3,000)
• $1.5 million – $6 million: Quarterly filing
• Over $6 million: Monthly filing

Most freelancers start with annual filing. You can elect to file more frequently if you prefer regular refunds of your ITCs.

File and pay using CRA My Business Account or a GST/HST return form (GST34). The deadline is one month after your reporting period ends (three months for annual filers with a December 31 year-end).

The Quick Method of Accounting

Small businesses with annual taxable supplies under $400,000 can elect the Quick Method, which simplifies GST/HST remittances. Instead of tracking and remitting the exact difference between GST/HST collected and ITCs claimed, you remit a fixed percentage of your gross sales (including GST/HST). The Quick Method rate for service businesses is 3.6% on HST-included revenue in Ontario (13% HST) — check the CRA for your province. This method is simpler but may result in slightly different amounts than the regular method. Consult an accountant to determine which is more favourable for your situation.

Frequently Asked Questions

If my client is outside Canada, do I charge GST/HST?

Generally no. Services provided to non-resident clients outside Canada are typically zero-rated — you charge 0% GST/HST. However, the supply rules are complex, particularly for services delivered electronically. Review the CRA's rules on zero-rated and exempt supplies for your specific situation.

What happens if I forget to register after crossing $30,000?

You are liable for the GST/HST that should have been collected from the moment you exceeded the threshold, even if you did not charge it. The CRA can assess these amounts plus interest. Register as soon as you realize you have exceeded the threshold and contact a CPA to help you determine your back-owing amounts.

Do I include GST/HST in my income on my T2125?

No. Your T2125 reports business income excluding GST/HST. The GST/HST you collect is held in trust for the CRA — it is not your income. Keep it in a separate account and remit it when your return is due.

Can TaxSort help with GST/HST tracking?

TaxSort captures the GST/HST paid on every receipt you scan. Exported reports show the total GST/HST paid on business expenses, making it straightforward to calculate your ITCs for each reporting period. Your CPA or BAS agent can use the exported summary directly.