When you start freelancing in Canada, the GST/HST question comes up fast. Do you need to charge it? When? To which clients? Here's a plain-language answer.
The short answer
If your total worldwide taxable revenue is under $30,000 in any rolling 12-month period, you're a small supplier and you do not need to register for, collect, or remit GST/HST.
Once you cross $30,000, you must register within 29 days and start collecting GST/HST on your invoices.
What counts as "taxable revenue"
Most freelance and consulting work counts. If you're a:
- Software developer or designer
- Writer or content creator
- Consultant (business, marketing, strategy)
- Photographer or videographer
- Accountant or bookkeeper
- Tradesperson
...your revenue is taxable and counts toward the $30,000 threshold.
Employment income (T4) does not count. If you work a salaried job and freelance on the side, only your freelance revenue counts toward the threshold.
What rate do you charge?
The rate depends on the province where the supply is made — generally where your client is located for services:
- Ontario, Nova Scotia, New Brunswick, PEI, Newfoundland: 13–15% HST
- British Columbia, Manitoba, Saskatchewan, Alberta: 5% GST (some provinces add provincial tax separately)
- Quebec: 5% GST + 9.975% QST (registered separately with Revenu Québec)
Do you charge HST to US or international clients?
Generally no. Services exported outside Canada are typically zero-rated — they count toward your threshold (so they affect whether you need to register) but you charge 0% GST/HST on the invoice itself.
There are nuances here depending on whether the service is consumed in Canada. A Canadian client with a US billing address might still be subject to HST. When in doubt, check RC4022 or ask an accountant.
Can you register voluntarily before $30,000?
Yes. If your clients are businesses, they'll likely claim your HST as an input tax credit anyway, so charging it doesn't cost them extra. And once you're registered, you can claim input tax credits on your own business expenses — software, equipment, coworking space.
Many freelancers register voluntarily as soon as they start, especially if they have significant business expenses or deal primarily with GST/HST-registered businesses.
What happens when you're required to register but don't
The CRA can assess you for the GST/HST you should have collected from the date you crossed the threshold. You'd owe it out of pocket — even if you never collected it from clients. There are also penalties and interest on late registration.
How to track whether you're approaching the threshold
The threshold is a rolling 12-month window — not a calendar year. That means you need to look at your revenue over the past 12 months at any given point, not just January to December.
HST Hero tracks this automatically. You log revenue entries and it maintains the rolling window, shows your status (safe / heads up / over), and tells you approximately when you'd cross at your current pace. Free up to 10 transactions — enough to know where you stand.
Summary
- Under $30,000 rolling 12-month revenue → no GST/HST required
- Over $30,000 → register within 29 days, start charging immediately
- T4 employment income doesn't count toward the threshold
- US/international clients → zero-rated (0% GST/HST)
- You can register voluntarily before hitting $30,000
- The window is rolling, not calendar year — this is the most common mistake