2026 Guide to GST/HST Registration: When You Must Register & How to File

Table of Contents

1. Introduction
2. What Is GST/HST?
3. Who Must Register for GST/HST in 2026
4. Small Supplier Rules Explained
5. When You Should Register Voluntarily
6. How to Register for GST/HST
7. How to File GST/HST Returns
8. Input Tax Credits (ITCs) Explained
9. Filing Deadlines and Payment Obligations
10. Penalties for Late or Incorrect Filing
11. CRA Audit Risks Related to GST/HST
12. How BBA Tax Ottawa Can Help
13. Conclusion

1. Introduction

GST/HST registration is one of the most misunderstood obligations for Canadian business owners. Many individuals and corporations fail to register on time, while others register unnecessarily—both of which can lead to CRA penalties, interest charges, and audits.

This 2026 guide explains exactly when you must register for GST/HST, how to file, and how to remain compliant, with professional insight from BBA Tax Ottawa, a trusted accounting firm serving individuals and businesses across Canada.

2. What Is GST/HST?

The Goods and Services Tax (GST) and Harmonized Sales Tax (HST) are federal consumption taxes collected on most goods and services in Canada.

• GST: 5% (federal)
• HST: Combined federal and provincial tax (e.g., Ontario = 13%)

Businesses act as tax collectors for the CRA, not taxpayers.

3. Who Must Register for GST/HST in 2026

You must register if:

• Your worldwide taxable supplies exceed $30,000 in revenue
• The threshold is exceeded in any rolling 12-month period
• You sell taxable goods or services in Canada

This applies to:

• Sole proprietors
• Contractors and freelancers
• Corporations
• Online businesses

4. Small Supplier Rules Explained

You are considered a small supplier if your total taxable revenues are $30,000 or less in a 12-month period.

Once you exceed the threshold:

• Registration becomes mandatory
• You must start charging GST/HST immediately
• You cannot delay registration

Failing to register on time can result in the CRA assessing back taxes plus interest.

5. When You Should Register Voluntarily

Voluntary registration may benefit businesses that:

• Have high startup expenses
• Want to claim Input Tax Credits (ITCs)
• Work primarily with GST-registered clients

Voluntary registration must still comply with filing and remittance requirements.

6. How to Register for GST/HST

Registration can be completed:

• Online via CRA My Business Account
• By phone with CRA
• Through your accountant

You will receive:

• A GST/HST account number
• Filing frequency (monthly, quarterly, or annually)

BBA Tax Ottawa can register your business correctly to avoid future issues.

7. How to File GST/HST Returns

Filing involves:

• Reporting total sales
• Calculating GST/HST collected
• Claiming eligible ITCs
• Remitting the balance to CRA

Returns can be filed:

• Online
• By mail (limited cases)
• Through professional accounting software

Accuracy is critical—errors often trigger audits.

8. Input Tax Credits (ITCs) Explained

Input Tax Credits allow you to recover GST/HST paid on business expenses such as:

• Office supplies
• Equipment
• Rent
• Professional fees
• Advertising

ITCs must be:

• Supported by valid receipts
• Business-related
• Properly documented

9. Filing Deadlines and Payment Obligations

Late payments result in:

• Interest charges
• Penalties
• CRA collection actions

10. Penalties for Late or Incorrect Filing

The CRA may impose:

• Late-filing penalties
• Interest on unpaid balances
• Reassessment of ITCs
• Backdated registration

Repeated errors significantly increase audit risk.

11. CRA Audit Risks Related to GST/HST

GST/HST is one of the most audited areas by the CRA.

Common triggers include:

• Large ITC claims
• Inconsistent revenue reporting
• Late filings
• Poor bookkeeping
• Mixing personal and business expenses

Professional oversight is strongly recommended.

12. How BBA Tax Ottawa Can Help

BBA Tax provides:

• GST/HST registration
• Return preparation and filing
• ITC review and documentation
• CRA audit defense
• Bookkeeping and compliance monitoring

We ensure your filings are accurate and defensible.

13. Conclusion

GST/HST compliance in 2026 is not optional—it is a legal obligation. Understanding when to register, how to file correctly, and how to claim ITCs can save thousands while avoiding CRA enforcement.

For expert guidance, BBA Tax Ottawa provides clear, professional support for businesses of all sizes.

📞 Contact BBA Tax today for GST/HST registration and filing assistance.