First, use the right sales total
For a sole proprietor, use worldwide taxable supplies before expenses from all businesses, including zero-rated supplies and relevant associates. Exclude financial services, sales of capital property and goodwill from selling a business. A calendar quarter runs January–March, April–June, July–September or October–December. Profit and net platform payouts are not substitutes for this total.
Example A: one quarter crosses the limit
Assume a previously unregistered small supplier has $29,000 of qualifying sales in the current quarter, then makes a $2,000 taxable sale. The total becomes $31,000. GST/HST must apply to the entire sale that crosses the limit, not just the $1,000 above it. The effective registration date is no later than that sale’s date. Do not wait for quarter-end.
Example B: four quarters add up
Assume the business starts in October 2025 and records $8,000 in each of Q4 2025 and Q1, Q2 and Q3 2026. No individual quarter exceeds $30,000, but the total is $32,000 by September 30. It stops being a small supplier at the end of October 31. If its first subsequent taxable supply is November 1, its effective registration date is no later than November 1, and it charges from that date. This assumes no earlier voluntary registration or special exception.
CRA requires registration within 29 days of the effective date in these examples. That application window is not an extra tax-free period. Both examples use hypothetical sales amounts.
Your next record-keeping step
List the applicable sales for each quarter, check the current quarter’s running total, then check the rolling four-quarter total. Umadeit’s website threshold tool can help organise the calculation; confirm the supply types and exceptions yourself. For cash-flow planning, track collected GST/HST separately from money available for spending; the eventual remittance also depends on eligible credits and the accounting method.
Three threshold mistakes to avoid
Do not reset the rolling test every January, deduct expenses before testing the threshold, or treat every platform as having its own $30,000 allowance.
Questions near the threshold
What if sales are exactly $30,000?
No: this ordinary test is triggered by exceeding the threshold. Check both periods and any registration exceptions.
Must a new business wait four quarters?
No. The limit can be exceeded across fewer consecutive quarters, or in one quarter alone.
Can commercial rideshare drivers wait for $30,000?
No. Self-employed taxi and commercial rideshare drivers must register even as small suppliers. See the separate rideshare guide. This is general information, not individual tax advice; confirm your circumstances with CRA or a qualified adviser.