CRA & GST/HST 2026 — What Canadian SMBs need to know
Complete guide to federal GST, provincial HST/PST, Quebec QST, and CRA filing
Canadian sales tax is layered: federal GST applies everywhere (5%), HST replaces both in five provinces (Ontario 13%, NB/NS/PEI/NL 15%), Quebec has its own QST (9.975%) on top of GST, and BC/SK/MB apply provincial sales tax separately. This guide explains who must register, when, how to file via CRA My Business Account, and how Input Tax Credit (ITC) recapture works.
GST, HST, PST, QST — who pays what
Federal GST 5% applies on most goods and services nationwide. HST is a single combined federal+provincial tax in ON (13%), NB/NS/PEI/NL (15%). Quebec uses QST 9.975% calculated on the GST-inclusive amount. BC PST 7%, Saskatchewan PST 6%, Manitoba RST 7% are separate provincial taxes. Alberta and territories have only GST. The tax that applies depends on where the customer takes delivery (place of supply rules).
When you must register for GST/HST
Mandatory registration once your worldwide taxable revenues exceed $30,000 in any four consecutive calendar quarters (or one quarter). Below this you're a 'small supplier' and can register voluntarily — usually worth it to claim ITCs. Quebec has its own registration with Revenu Québec (same $30k threshold). PST/RST/QST in BC/SK/MB have separate registration requirements.
Input Tax Credit (ITC) basics
Once registered for GST/HST, you can claim back the tax paid on business purchases (Input Tax Credits). Capital purchases over $1,000 require additional documentation. Ontario and PEI have Recaptured Input Tax Credits (RITC) on certain items (telephony, fuel, meals/entertainment 50%). Quebec has separate Input Tax Refunds (ITR) for QST.
NetFile and CRA My Business Account
GST/HST returns are filed via CRA My Business Account (My BA) using GST/HST NetFile. Quarterly filings for most SMBs (annual filing if revenue under $1.5M and you choose). Returns must be filed even if no tax owing. Late filing penalties: 1% + 0.25% × months late + interest on unpaid amounts.
How 4b2b helps
Frequently asked questions
Do I have to register for GST/HST?
Mandatory if revenues exceed $30,000 in any four consecutive calendar quarters. Optional below that ('small supplier'). Most businesses register voluntarily to claim ITCs.
What's the difference between GST and HST?
GST is the federal 5% tax. HST is a single combined federal+provincial tax used in ON (13%) and NB/NS/PEI/NL (15%) — it replaces both GST and PST in those provinces.
How does Quebec QST work?
QST 9.975% is applied on the price including GST. So total tax in Quebec is 14.975% (5% GST + 9.975% QST on GST-inclusive amount). Quebec registration is with Revenu Québec separately.
What about provincial PST in BC/SK/MB?
These provinces have their own provincial sales tax: BC PST 7%, Saskatchewan PST 6%, Manitoba RST 7%. Separate registration with each province, separate filing schedules.
Can I file GST/HST late?
Yes, but with penalties: 1% of amount owing + 0.25% × months late, plus interest. File even if no amount owing to avoid 1% penalty.
Related solutions & industries
Put this guide into practice with concrete 4b2b solutions and industry-specific examples.