Small supplier threshold (GST/HST)

A small business meets this threshold when deciding whether it must register for GST/HST, or whether a business being bought already has to. Section 148 of the Excise Tax Act sets the test by reference to calendar quarters, section 148.1 sets a separate one for charities and public institutions, and the CRA’s guide for registrants explains it in plain terms. The dollar limits are in the Act and the guide, and they can change, so they are not repeated here.

What the CRA says

• A small supplier does not have to register, but a person who carries on a taxi business or provides commercial ride-sharing services must register even if it is a small supplier, and some non-residents selling admissions are not small suppliers
• The test counts the revenue of the person and of associated persons, over a single calendar quarter and over the last four consecutive calendar quarters
• A person who stops being a small supplier must register, and the effective date can be the day of the supply that went over the limit
• A small supplier engaged in a commercial activity in Canada can choose to register voluntarily

Ask the seller which basis it relied on. GST/HST on a business sale covers how registration status carries into a deal, and the next step is GST/HST registration.