Do Canadian Freelancers Need to Charge GST/HST? The $30,000 Rule

Sales tax is the part of freelancing in Canada that causes the most confusion. You don't have to charge GST/HST from your first invoice, but once you pass the small supplier threshold you must register, and the rate you charge depends on where your client is, not where you live.

The $30,000 small supplier threshold

You're a small supplier until your worldwide taxable sales pass $30,000 over four consecutive calendar quarters. After that you must register and start charging GST/HST. You can register earlier voluntarily, which lets you claim back the GST/HST you pay on business expenses as input tax credits.

Which rate to charge

• 5% GST: Alberta, Yukon, Northwest Territories and Nunavut.
• 13% HST: Ontario.
• 14% HST: Nova Scotia (from 1 April 2025).
• 15% HST: New Brunswick, Newfoundland and Labrador, and Prince Edward Island.
• 5% GST plus provincial tax: BC (7% PST), Manitoba (7% RST), Saskatchewan (6% PST) and Quebec (9.975% QST).

For services, the place-of-supply rules usually point to where your client is. A freelancer in Alberta billing a client in Ontario generally charges Ontario's 13% HST.

The same invoice to a client in Quebec adds $50 of GST and $99.75 of QST, for $1,149.75. Provincial sales taxes like BC's PST follow their own rules, and many services are exempt from them.

Clients outside Canada

Services supplied to non-resident clients, such as a US company, are often zero-rated: you charge 0% but can still claim input tax credits on your expenses. The conditions matter, so check the CRA's guidance on exported services for your situation.

Tip: Watch the rolling four-quarter total, not just the calendar year. The $30,000 test uses any four consecutive calendar quarters.