If you’ve just started a business, or your side business has been taking off, you may be required to register and charge GST/HST on your sales. In general, your business will be required to charge GST/HST on the sale of most taxable goods, services, and leases, where revenue from these activities exceeds $30,000 over four consecutive calendar quarters.
Note that this requirement for GST/HST is based on consecutive calendar quarters, as opposed to a complete fiscal year. For example, if your business earned $25k in revenue in both fiscal 2019 and fiscal 2020, it might not seem like you will be required to register. However, if $20k of your 2019 revenue was earned in the last two quarters of the 2019 fiscal year, and $10k of your 2020 revenue was earned in the first two quarters of the 2020 fiscal year, then you will have met the requirement of $30k revenue over four consecutive quarters. In this situation, your business would be required to register, despite never hitting $30k in sales in a single fiscal year. (more…)