Canadian Freelancer TPS/TVH Guide: 30 000$ Threshold and Provincial Sales Tax
How Canadian freelancers navigate GST/HST/PST/QST, the $30,000 small supplier threshold, and why voluntary registration usually pays off.
Canada's two-tier sales tax: TPS/TVH + provincial
Canada doesn't have a single sales tax — it layers a federal GST (Taxe sur les Produits et Services, 5%) with provincial sales taxes that vary by province. The combined rate ranges from 5% in Alberta to 15% in Quebec (where the QST of 9.975% stacks on top of the 5% GST).
In Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador, the two are harmonised as HST (13-15% combined). In British Columbia, Saskatchewan, Manitoba, and Quebec, the federal GST applies plus a separate provincial tax that you must file and remit independently.
Open the freelancer generatorThe $30,000 small supplier threshold
You must register for GST/HST once your taxable supplies exceed $30,000 CAD in any rolling 12-month period. Below that, you are a 'small supplier' and can choose whether to register voluntarily or not.
Voluntary registration is usually the right choice for Canadian freelancers earning more than ~$20,000, because the input tax credits (CTI/RTC) you can claim on business expenses typically exceed the cost of the administrative filing. The decision flips the other way for very low-turnover freelancers or those with minimal business expenses.
Quebec: QST adds a layer
If you operate in Quebec, you must also register for QST (Quebec Sales Tax) with Revenu Québec separately from your GST/HST registration with the CRA. The QST return is filed separately on a different schedule (usually quarterly).
Your invoice for Quebec clients must show both GST (5%) and QST (9.975%) as separate line items, with your QST registration number and GST number both displayed. The combined tax calculation is straightforward but the dual-filing requirement catches many new freelancers off guard.