GST/HST registration for a Canadian cleaning business: when and how

What to take away

Who has to register

The Canada Revenue Agency (CRA) puts the rule in two parts. You have to register for a GST/HST account if you are not a small supplier and you make taxable sales, leases or other supplies in Canada. A carpet or upholstery cleaner who is paid to clean customers' furniture, rugs and floors fits the second part in the ordinary case.

Some people must register even when they are small suppliers, such as taxi operators and commercial ride-sharing drivers. Those exceptions do not apply to a cleaning business. If you only provide exempt supplies you generally cannot register, but most paid cleaning work is not exempt, so the small supplier test is the question that decides your position. If you sell an unusual kind of service, confirm it with the CRA before relying on either assumption.

Revenue is counted as total revenue before expenses from worldwide taxable supplies, including those of your associates. That detail catches owners who run a cleaning company alongside a related restoration or janitorial business. Their revenues can be added together for the test.

The $30,000 small supplier test

The CRA describes two tests, and you have to watch both.

The single quarter test. If your taxable revenue exceeds $30,000 in one calendar quarter, you stop being a small supplier on the supply that crosses the threshold. Your effective registration date is no later than the date of that supply, and GST/HST applies from that date, including that sale. A cleaner who wins a large commercial contract late in a quarter can pass the line on a single invoice.

The four consecutive quarters test. If you exceed $30,000 over the previous four or fewer consecutive calendar quarters, but not in any single one, you stop being a small supplier at the end of the month following the quarter in which you crossed. Your effective date is no later than your first supply after that point. This test catches the steady business that grows by small amounts.

If you pass neither test, you remain a small supplier and do not have to register. The CRA's guide for registrants adds that the threshold calculation excludes financial services, sales of capital property and goodwill. A van or a truck-mount unit you sell when upgrading does not count toward the $30,000.

Track both measures from the first month. A simple monthly sheet that sums taxable revenue by calendar quarter and rolls up the last four quarters is enough. The bookkeeping and cash flow basics article shows how to set up the records.

The 29-day deadline and charging from day one

When you cross the line, the effective date is the day of the supply that made you go over, or the later date described under the four-quarter test. The CRA says you must register within 29 days of that day. Its worked examples use the same 29-day wording.

The practical risk is the gap. Under the single-quarter test the tax applies to the sale that pushed you over, even if you have no account number yet. The sale that crosses the line is already a taxable sale, so price it with the tax in mind. Plan the first invoice after crossing the line before it happens, and consider registering as you approach the limit.

Voluntary registration works differently. A small supplier that makes taxable sales may choose to register. The effective date is usually the day you request the account, or up to 30 days before that. The CRA guide also notes that a voluntary registrant generally has to stay registered for at least one year before cancelling.

Why some owners register before they have to

Once registered, you can claim input tax credits (ITCs) to recover the GST/HST you paid on business purchases used in commercial activities. For a cleaning business that includes chemicals, extraction equipment, a work vehicle and software. The guide describes a 100% ITC where at least 90% of an operating expense is used in commercial activities, and a fair apportionment otherwise. Most registrants have four years from the end of the reporting period in which the ITC could first be claimed.

The trade-off is that you must charge the tax to your customers. If you sell mostly to households that cannot recover it, the added price can matter. If you sell to businesses, property managers or landlords, the tax is a smaller issue for them, and registering earlier lets you recover tax on startup expenses. The startup costs and funding options guide helps you see how large the equipment purchases are before you decide.

How to register

You need a business number first. The CRA then lets you register through its Business Registration Online service or by sending Form RC1. Businesses in Quebec should contact Revenu Québec, which administers the tax there.

Registration opens a GST/HST account. The CRA's account page covers changing and closing the account and authorizing a representative. Keep your account details current, because every address or business structure change should be reported.

The licences and compliance article covers the provincial side of getting started.

Which rate to charge

The rate depends on the place of supply, which is the province or territory where the service is supplied. In the participating provinces of New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario and Prince Edward Island, HST applies at 13%, 14% or 15%. Elsewhere in Canada, GST applies at 5%. Ontario is 13%. Nova Scotia's provincial part was reduced to 9% from April 1, 2025, so its HST is 14%.

Where provincial sales tax applies, such as in Manitoba, it is separate and the GST is calculated on the price without PST. Quebec has its own sales tax run by Revenu Québec. If your crews work across a provincial line, check the place of supply for each job rather than assuming the rate of your home province. The CRA publishes a GST/HST calculator and place-of-supply rules for this.

Filing, paying and keeping records

The CRA assigns a reporting period based on annual taxable supplies:

Monthly and quarterly filers file and remit no later than one month after the end of the reporting period. Annual filers usually do so within three months of fiscal year-end. Individuals with business income who file annually and have a December 31 year-end must pay by April 30 and can file by June 15.

Net tax is the GST/HST you collected minus your ITCs, calculated under either the regular method or the quick method. The quick method is open to businesses whose worldwide taxable supplies, including zero-rated ones, were no more than $400,000 in any four consecutive fiscal quarters over the last five, with a permanent establishment in Canada.

Late filing carries a penalty of 1% of the amount owing, plus an extra amount equal to 25% of that 1% for each complete month overdue, up to 12 months. Keep sales and purchase invoices and related records for six years from the end of the year they relate to.

Common questions

Do I have to register if I earn less than $30,000?

Not unless another rule applies. You remain a small supplier and can choose voluntary registration.

Does a side job count toward the limit?

Revenue from taxable supplies is counted worldwide and includes associates, so related businesses can be added together.

What if I miss the 29 days?

The CRA page does not set out the consequence in the section reviewed. Register as soon as you can and contact the CRA about the tax on any invoices issued after the effective date.

Can I recover tax on a van I bought before registering?

Whether and how much you can claim depends on the ITC rules for the property and its use. Ask the CRA or an accountant before filing the first return.

Official sources