⚡ Quick Summary
Once your self-employment revenue exceeds $30,000 in any 12-month period, you must register for HST/GST, collect it from clients, and remit the net amount to the CRA annually or quarterly.
Do Freelancers Need to Charge HST/GST?
This is one of the most common questions from self-employed Canadians — and the answer depends entirely on how much you earn. Below the $30,000 threshold, you're a "small supplier" and HST/GST is optional. Above it, registration is mandatory.
Many freelancers voluntarily register even before hitting $30,000 because it lets them claim Input Tax Credits (ITCs) — recovering the HST/GST they pay on business purchases.
The $30,000 Threshold — How It Works
The threshold is calculated over any single rolling 12-month period — not a calendar year. If you earn $32,000 from April 2024 to March 2025, you're required to register immediately, even if your calendar-year revenue was lower. You have 30 days to register after exceeding the threshold.
HST/GST Rates by Province (2025)
| Province | Rate | Type |
|---|---|---|
| Ontario | 13% | HST |
| British Columbia | 12% | GST + PST |
| Alberta | 5% | GST only |
| Quebec | 14.975% | GST + QST |
| Nova Scotia | 15% | HST |
| New Brunswick | 15% | HST |
| Manitoba | 12% | GST + PST |
| Saskatchewan | 11% | GST + PST |
The rate you charge is based on the province where your client receives the service (the "place of supply" rules), not where you're located.
How to Register for HST/GST
Register online through CRA My Business Account or by calling the CRA Business Registration line. You'll receive a 9-digit Business Number (BN) with an RT account identifier (e.g. 123456789 RT0001). This number goes on all your invoices.
What Are Input Tax Credits (ITCs)?
Once registered, you can recover the HST/GST you paid on business expenses — equipment, software, phone, advertising, professional fees — by claiming Input Tax Credits on your HST/GST return. This is one of the best reasons to register early, even voluntarily.
Example: You buy a $2,000 laptop for business. At 13% HST in Ontario, you paid $260 in tax. You recover that $260 as an ITC, reducing your net HST remittance.
Filing Your HST/GST Return
Most new registrants file annually — the return is due within 3 months of your fiscal year-end. High-revenue registrants may be required to file quarterly or monthly. You remit the net HST collected minus ITCs. If your ITCs exceed HST collected, you get a refund.
The Quick Method (HST Simplification)
Registrants with under $400,000 in annual revenue can elect the Quick Method, which lets you remit a flat percentage of your HST-inclusive sales instead of tracking every ITC. For most service-based freelancers, this is simpler and often results in keeping a bit extra. Our team calculates whether Quick Method saves you money.
Expert Tips
- Open a separate HST/GST account and move collected HST there immediately — it's not your money.
- Always show HST separately on invoices — "Invoice total $1,000 + $130 HST = $1,130".
- Reconcile your HST account with your T2125 — we do this as part of every self-employed return.
- Register early if you're buying a lot of equipment — you can claim ITCs on purchases made before registration (within specified limits).