For a new Ontario business, HST is usually the first compliance hurdle. The rules are straightforward once you know the thresholds, but the penalties for getting them wrong add up quickly.
When you must register
You are required to register for HST once your worldwide taxable revenues exceed $30,000 over four consecutive calendar quarters. You can register voluntarily before reaching that threshold, which lets you claim input tax credits on startup purchases like equipment and software.
How often to file
Filing frequency depends on revenue. Below $1.5 million in annual taxable revenues, you can file annually; above that, quarterly or monthly filings apply. Newly registered businesses are typically assigned annual filing, with the option to elect a more frequent cycle.
Common mistakes
Collecting HST before you've registered, overlooking input tax credits on business expenses, and double-counting HST that a marketplace platform (such as Amazon or Shopify) already collected and remitted are the errors we correct most often during onboarding.