Do Freelancers Need to Charge GST/HST in Canada?

Short answer: only once your freelance revenue crosses $30,000. Below that, you're a "small supplier" and the CRA treats registration as optional. Above it, registration is mandatory and you must start charging GST/HST on your invoices. But like most things Canadian tax-related, the useful details sit under the short answer.

The $30,000 threshold — what it actually means

The CRA calls you a small supplier while your total worldwide taxable revenues stay under $30,000 in either:

• A single calendar quarter (three months), or
• Four consecutive calendar quarters (a rolling 12-month window)

The moment you cross either threshold, your small-supplier status ends and you have a limited window to register. The clock starts on the invoice that pushed you over — not the beginning of the year.

What "revenue" includes

The $30,000 refers to your gross taxable revenue — before expenses, before your take-home. It includes:

• Fees you invoice clients (before tax)
• Money earned from services you provide
• Zero-rated supplies (like exports)
• Both Canadian and international revenue

It does not include:

• The GST/HST you collected (if any)
• Employment income (that has its own rules)
• Investment income like dividends or capital gains
• Exempt supplies (like teaching music lessons to individuals, in some cases)

What happens when you cross the threshold

You have 29 days from the date you crossed $30,000 to register for a GST/HST account. Miss that window and the CRA can charge you back-taxes, interest, and penalties — you're responsible for the tax on sales you should have registered for, whether or not you actually collected it from your clients.

Practically, you should register the same week you realize you're getting close. The registration itself is free and takes about 20 minutes online through the CRA's Business Registration Online (BRO) portal.

Do I have to raise my prices?

This is the question freelancers actually worry about. Two things to know:

1. If your clients are businesses: they don't care. Businesses claim the GST/HST you charge them back as an Input Tax Credit. Your $1,000 invoice + $130 HST costs them the same as an $1,130 invoice from an unregistered freelancer, but they can recover the $130. Registered often looks more professional.

2. If your clients are individuals (not businesses): they can't claim it back, so the tax is real. You have two choices:

• Add tax on top. "$100 + HST" becomes "$113 in Ontario." Some clients will absorb it; others will push back on prices.
• Include tax in your existing price. Keep charging $100, but note that $88.50 is your fee and $11.50 is HST. Your take-home drops.

The upside of registering: Input Tax Credits (ITCs)

Once you're registered, you can claim back the GST/HST you paid on business expenses. This is huge for freelancers who spend on:

• Software subscriptions (Adobe, Notion, GitHub, etc.)
• Home office share (a portion of internet, utilities)
• Business equipment (laptop, monitor, phone)
• Professional fees (accountants, lawyers)
• Advertising and marketing spend
• Business travel and 50% of client meals

Real example: an Ontario freelancer with $60,000 in revenue and $5,000 in eligible business expenses might collect $7,800 in HST from clients and pay $650 in HST on expenses. They remit $7,800 − $650 = $7,150 to the CRA, keeping the $650 as their ITC recovery.

Should I register voluntarily below $30,000?

The math changes based on who your clients are:

Voluntary registration makes sense if:

• Most of your clients are businesses (they don't feel the tax anyway)
• You have meaningful business expenses to claim ITCs on
• You're approaching $30,000 and want the paperwork out of the way
• You want to look more established (registered businesses often are perceived as more professional)

Voluntary registration probably isn't worth it if:

• Your clients are individuals who see the tax as a price hike
• Your business expenses are minimal (so ITC recovery is negligible)
• You dread quarterly paperwork and would rather avoid it

Filing frequency

Once registered, the CRA assigns you a filing period based on your annual revenue:

• Under $1.5 million — annual filing (default for most freelancers)
• $1.5–6 million — quarterly filing
• Over $6 million — monthly filing

Annual filing means one return per year, due three months after your fiscal year-end. You can voluntarily choose more frequent filing if you prefer smaller, regular remittances over one big yearly one — some freelancers find quarterly less painful psychologically.

Quebec is special (as usual)

If you live in Quebec, most GST-registered businesses also register with Revenu Québec for QST. Revenu Québec administers both the federal GST and the provincial QST for most Quebec-based businesses — you get one account and one filing process for both.

The QST rate is 9.975%, so combined with 5% GST, Quebec freelancers charge 14.975% on invoices to Quebec clients.

Common freelancer scenarios

"I earned $28,000 this year — do I need to register?"

No, you're still under the small-supplier threshold. Keep an eye on the trailing 12-month total — the moment it crosses $30,000, you have 29 days.

"I earned $45,000 but never registered. What now?"

Register as soon as possible. You'll owe back-tax on invoices above the threshold, plus interest. A CPA can help you calculate exactly what you owe and negotiate with the CRA on penalties.

"I invoice a US client for $50,000 — does that count?"

Yes for the $30k threshold (worldwide revenue counts), but the sale itself is a zero-rated export — you don't charge GST/HST on it. You still file returns and can claim ITCs on your Canadian business expenses.

"I have a full-time job AND freelance $15,000 on the side. Do I register?"

No — only the freelance revenue counts toward the $30k threshold. Your employment income has taxes withheld separately.

The takeaway

Under $30,000: registration is optional. Do it if the ITC recovery is worth the paperwork. Over $30,000: you have 29 days, no choice. Charge the sales tax of your client's province (not your own). Remit quarterly or annually to the CRA. And whatever you do, don't spend the tax you collect — it isn't yours, it's the CRA's, and they will notice.