HST/GST Filing Guide for Small Business Canada | 2026

Q: When do I need to register for HST in Canada?

When your taxable revenue exceeds $30,000 in any 12-month period. You must register within 29 days of crossing the threshold.

Q: How often do I file HST in Canada?

Annual (under $1.5M revenue), quarterly ($1.5M–$6M), or monthly (over $6M). CRA assigns your frequency when you register — you can request a change.

Q: Can I claim HST paid on bookkeeping services?

Yes. HST paid on professional services like bookkeeping is fully recoverable as an Input Tax Credit (ITC) for HST-registered businesses.

Q: What happens if I file HST late in Canada?

CRA charges a minimum $250 penalty or 5% of the balance owing, plus 1% per month. Late HST is one of the most common and avoidable small business penalties.

Q: Does Alberta have HST?

No. Alberta only charges the 5% federal GST — there is no provincial sales tax. Alberta businesses file GST returns (not HST).

# HST/GST Filing Guide for Canadian Small Businesses (2026)

GST vs. HST: What's the Difference?

●GST (Goods and Services Tax): federal 5% — applies in Alberta, BC, Manitoba, Quebec, Saskatchewan
●HST (Harmonized Sales Tax): GST + provincial combined — Ontario (13%), Nova Scotia (15%), New Brunswick (15%), PEI (15%), Newfoundland (15%)
●BC and Quebec have separate provincial sales taxes (PST/QST) collected separately from GST

Provincial Sales Tax Rates

Province	Tax Type	Rate
Ontario	HST	13%
BC	GST + PST	5% + 7% = 12%
Alberta	GST only	5%
Quebec	GST + QST	5% + 9.975% = ~15%
Manitoba	GST + RST	5% + 7% = 12%
Nova Scotia	HST	15%
New Brunswick	HST	15%
PEI	HST	15%
Newfoundland	HST	15%
Saskatchewan	GST + PST	5% + 6% = 11%

When Do You Need to Register for HST/GST in Canada?

●Required: when taxable revenue exceeds $30,000 in any single calendar quarter OR in any four consecutive calendar quarters
●Voluntary registration: allowed at any time (advisable — lets you claim ITCs immediately)
●Certain businesses exempt: charities, small suppliers under threshold, some financial services

HST/GST Filing Deadlines in Canada

Filing Frequency	Who Qualifies	Due Date
Annual	Revenue under $1.5M	3 months after year-end
Quarterly	Revenue $1.5M–$6M	1 month after quarter-end
Monthly	Revenue over $6M	1 month after month-end

How to File a GST/HST Return in Canada

1. Calculate total HST/GST collected from customers 2. Calculate total ITCs (HST/GST paid on business expenses) 3. Net amount = HST collected minus ITCs = amount owing (or refund) 4. File online via CRA My Business Account or through your accounting software 5. Pay balance owing by due date

Input Tax Credits (ITCs): What You Can Claim

ITCs let you recover HST/GST paid on business purchases. Claimable on: office supplies, equipment, software subscriptions, professional services (bookkeeping!), vehicle expenses (business portion), marketing costs.

Not claimable on: personal expenses, meals/entertainment (50% limit), exempt purchases.

HST/GST Late Filing Penalties

●Minimum penalty: $250 or 5% of net tax owing (whichever is greater)
●Additional: 1%/month for each month late, up to 12 months
●Repeat offences: 10% of net tax + 2%/month
●Interest: currently CRA prescribed rate + 4%

Does a Bookkeeper File HST Returns?

Yes. A qualified bookkeeper handles HST collection tracking, ITC recording, quarterly/annual return preparation and filing, and CRA correspondence. HST filing is included in our $500/month flat rate.

Learn more about our [HST/GST filing service](/services/hst-gst-filing) or [outsourced bookkeeping services](/outsourced-bookkeeping-services). See [pricing](/pricing).

Frequently Asked Questions

When do I need to register for HST in Canada?

How often do I file HST in Canada?

Can I claim HST paid on bookkeeping services?

What happens if I file HST late in Canada?

Does Alberta have HST?

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