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MJ McClain Airdrie Accountant Sole Proprietor Register GST

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When do I need to register for GST as a sole proprietor?

This is a question we get asked frequently at our office.

As a sole proprietor, GST is a topic you want to be sure you’re at least aware of. The threshold for mandatory GST registration is $30,000 in sales in four consecutive calendar quarters (not in a calendar year).

  • If you exceed the $30,000 you must start charging ST at the beginning of the month after you exceed. You must register for GST within 29 days of making a GSTable sale.
  • If you exceed the $30,000 in a single calendar quarter, you start charging GST on the sale that put you over. You must register within 29 days of that date.

You can also choose to voluntarily register for GST. The benefit is that you can claim back the GST on all of your expenses. The downside is that you must charge your clients/customers GST and you must file a GST return.

Canada Revenue Agency provides helpful information on GST, outlining:

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